Dunhua Jincheng Industrial Co., Ltd signed an agreement to acquire Yanbian Shixian Shuanglu Industrial Co., Ltd. from Yanbian Shixian Bailu Papermaking Co.,Ltd (SHSE:600462) for approximately CNY 290 million in cash on August 25, 2015. In a related transaction, Yanbian Shixian Bailu Papermaking Co., Ltd will acquire 70% stake in Shenzhen Brodsands Technology Co., Ltd. The transaction is subject to approval of shareholders of Yanbian Shixian Bailu Papermaking. The Board of Yanbian Shixian Bailu Papermaking and the shareholders of Dunhua Jincheng Industrial Co., Ltd approved the transaction on August 25, 2015.

The shareholders of Yanbian Shixian Bailu Papermaking approved the transaction on September 10, 2015. Hengtai Changcai Securities Co., Ltd. acted as the financial advisor, Grandall Law Firm acted as the legal advisor, Zhongzhun Certified Public Accountants and Daxin Certified Public Accountants acted as the accountants to Yanbian Shixian Bailu Papermaking Co., Ltd.