Core Viewpoint - Minfeng Special Paper Co., Ltd. is proceeding with the public auction of unused equipment from its Nanhu plant, initially set at a valuation of RMB 174,651,109.00, which has been adjusted to RMB 169,968,254.00 after excluding certain equipment. The first auction was unsuccessful, leading to a second auction with a 10% price reduction to RMB 152,971,428.60 [2][3][4] Group 1: Transaction Overview - The company held board meetings on September 29, 2025, and October 15, 2025, to approve the sale of unused equipment from the Nanhu plant to enhance asset liquidity and operational efficiency [3][13] - The initial auction price was set at RMB 174,651,109.00, later adjusted to RMB 169,968,254.00 after removing specific equipment [2][14] - The first auction period ran from October 17, 2025, to November 17, 2025, but resulted in no interested buyers, leading to a failed auction [3][14] Group 2: Subsequent Arrangements - On November 19, 2025, the board approved a second public auction with a 10% price reduction from the adjusted price, setting the new auction price at RMB 152,971,428.60 [4][14] - The second auction will proceed without requiring further shareholder approval, as it was authorized by the board [4][14] Group 3: Management Changes - The company announced the resignation of General Manager Cao Jihua on November 18, 2025, due to work reasons, while he will continue to serve as a board member and chairman [16][17] - The board appointed Han Jiyou as the new General Manager, effective immediately, with a term lasting until the end of the current board's tenure [17][18]

Group 1 - The company plans to cancel its supervisory board and amend its articles of association in accordance with the new Company Law effective from July 1, 2024, and related regulations [1][2][32] - The supervisory board's responsibilities will be transferred to the audit committee of the board of directors, and relevant rules will be abolished [1][2][32] - The proposed changes require approval at the company's first extraordinary general meeting in 2025 [2][33] Group 2 - The company intends to publicly sell unused equipment from its South Lake plant through Jiaxing Property Rights Exchange, with a starting price of no less than RMB 174,651,109 [7][11][20] - The transaction does not constitute a related party transaction or a major asset restructuring [8][12] - The board of directors has approved the proposal, which will also be submitted for shareholder approval [14][41] Group 3 - The assets for sale include various paper machines and other equipment, all of which are currently non-operational [16][17] - The assessed value of the assets is RMB 174,651,109, reflecting an increase of RMB 38,893,635.87 or 28.65% from the book value [20][21] - The company aims to enhance asset efficiency and liquidity through this sale [11][21][61] Group 4 - The company has signed a compensation framework agreement for land acquisition with the Jiaxing municipal government, with total compensation amounting to RMB 107,962.68 million [39][40] - The agreement includes provisions for soil pollution investigation and remediation, which may affect the timeline and costs of the project [53][61] - The compensation will be paid in stages, with initial payments to be made within 45 days of signing the agreement [54][55]