Shandong Chenming Paper (HKG:1812) said that it was recently notified by its controlling shareholder, Shandong Chenming Holdings, of the transfer of 16% equity interest in Shandong Chenming Holdings held by State-owned Assets Supervision and Administration Commission of Shouguang City (the SASAC) pursuant to the "Equity Transaction Contract" signed between the SASAC and Shouguang Ruifeng Enterprise Investment Co., Ltd. and the exercise of purchase option by Shouguang Ruifeng Enterprise Investment as a shareholder of Shandong Chenming Holdings upon approval from the related department and implementation of the state-owned assets listing-for-sale procedure.

Shandong Chenming Holdings continues to hold 293 million shares of Shandong Chenming Paper upon completion of the equity transfer. It remains the controlling shareholder of Shandong Chenming Paper with 14.21% equity interest in the company.

The change in the shareholding of Shandong Chenming Holdings is as follows: Shandong Chenming Holdings is held as to 59.73% by the SASAC, 13.71% by Shouguang Henglian Enterprise Investment Co. Ltd. and 26.56% by Shouguang Ruifeng Enterprise Investment. The SASAC remains the beneficial controller of Shandong Chenming Paper.