Ge Long Hui·2025-12-15 15:08Core Viewpoint - The company, Chenming Paper Holdings (01812.HK), has entered into an agreement to sell equity and loans related to its financing leasing business, aiming to focus on its core operations and improve its financial structure [1][2]. Group 1: Transaction Details - The total consideration for the sale of equity and loans is RMB 333,635.30 million [1]. - The agreement involves the sale of 100% equity of Shandong Chenming Financing Leasing Co., Ltd., 25% equity of Qingdao Chenming Paper Products Sales Co., Ltd., and 25% equity of Shanghai Chenming Financing Leasing Co., Ltd. [1]. - The loan being sold has a book value of RMB 2,262.96 million, which was provided to support the daily operations of the target company [1]. Group 2: Strategic Implications - Following the completion of the sale, the company will no longer hold any interests in the target group, and the financial performance of the target group will not be included in the consolidated financial statements [2]. - The sale aligns with the company's overall development strategy, aiming to enhance asset-liability structure, revitalize existing assets, and concentrate resources on core business [2]. - The transaction is expected to improve the company's profitability and enhance its core competitiveness, promoting sustainable high-quality development [2]. Group 3: Operational Impact - The company’s daily business operations are expected to remain largely unchanged before and after the completion of the sale [2]. - The company will continue to focus on the production and sales of paper products, with four out of five production bases already resumed operations [2]. - The board anticipates that the sale will not result in significant changes to the company's business and operational scale [2].