Shandong Chenming Paper Holdings Ltd. (SZSE:200488) announced a private placement of not more than 45,000,000 preferred shares at CNY 100 per share for gross proceeds of not more than CNY 4,500,000,000 on December 29, 2014. The preferred shares to be issued will carry fixed dividend rate with single step up in dividend rate arrangement; they are cumulative, participating, and non-convertible preference shares without any clause on the right to sell back; and have a par value of CNY 100 per share and will be issued at par. The general meeting shall authorize the board to determine the dividend rate of the preference shares for the first five years. The preference shares will be redeemed from the fifth anniversary of the first dividend accruing date in the event of issuing by tranches, on the first dividend accruing date of each tranche respectively up to the date on which all the preference shares have been redeemed in full. The redemption price of the shares will be the par value of the preference shares plus cumulative but unpaid dividends on the preference shares. The transaction will take place in tranches. The first tranche, being not less than 50% of the total number of shares to be issued, will be issued within 6 months from the date of approval by the China Securities Regulatory Commission, the issuance of the remaining shares will be completed within 24 months. The company announced that the transaction has been approved in its 5th special session of the 7th directorate. The transaction is still subject to the approval of the company's shareholders and the China Securities Regulatory Commission. The exact number of shares to be issued will be determined by the board, which is to be authorized by the general meeting. The resolution in respect of the issue of preference shares shall remain valid for 24 months commencing from the date of approval of the general meeting. The transaction will include participation from not more than 200 qualified investors which does not include existing investors.

On February 13, 2015, the company announced that the transaction has received approval from 1st A share, B share type shareholders' meeting for 2015 and 1st H share type shareholders' meeting for 2015.

On August 21, 2015, the company announced that the Issuance Examination Committee of the China Securities Regulatory Commission approved the transaction.

On September 17, 2015, the company announced that China Securities Regulatory Commission has approved the transaction.

On March 17, 2016, the company issued 22,500,000 shares for proceeds of CNY 2,250,000,000 in its first tranche. The transaction included participation from Shandong Dongtai Import & Export Co., Ltd. for CNY 200,000,000, Shandong Taishan Steel Co., Ltd. for CNY 200,000,000, Laiwu Guangyang Investment Co., Ltd. for CNY 450,000,000, Qilu Bank Co., Ltd. for CNY 600,000,000, and Guosen Leasing Co., Ltd. for CNY 800,000,000. The company received net proceeds of CNY 2,238,750,000 with issuance fees of CNY CNY 11,250,000.

On August 25, 2016, the company announced that it will issue 10,000,000 preferred shares for CNY 1,000,000,000 in second tranche of the transaction.