Shandong Chenming Paper Holdings Limited (SZSE:000488) and Shandong Chenming Investment Co., Ltd. agreed to acquire a 44.66% stake in Weifang Chenrong New and Old Kinetic Energy Conversion Equity Investment Fund Partnership Enterprise from Chongqing International Trust Co., Ltd. and Chenming (Qingdao) Asset Management Co., Ltd. for approximately CNY 390 million on March 6, 2023. Under the terms, Shandong Chenming will issue 71.84 million shares for the acquisition of 44% stake and Shandong Chenming Investment Co., Ltd. will pay CNY 1.06 million in cash. Transaction is approved from Shandong Chenming's board and from shareholders also subject to approval from State-owned Assets Supervision and Administration of Shouguang, China Securities Regulatory Commission (CSRC) and Shenzhen Stock Exchange.

Transaction is approved by State-owned Assets Supervision and Administration of Shouguang. Transaction is also approved from internal decision-making procedures of Weifang Chenrong New and Old Kinetic Energy. Post completion, Shandong Chenming Paper Holdings Limited will hold directly own 63.68% stake in Shouguang Meilun, and through Chenrong Fund will indirectly control 5.44% stake in Shouguang Meilun.

For the period of September 30. 2022. Weifang Chenrong had CNY 479.78 million of total assets.

Hua Ying Securities Co., Ltd. acted as financial advisor, Yongxing Law Firm acted as legal advisor and Grant Thornton China Certified Public Accountants (Special General Partnership) acted as an accountant to Shandong Chenming Paper Holdings Limited.