Mr. Dongxing Wang, the founder and Chairman, owns 12.8% of the Company through an offshore structure. A further 20.9% is owned by other minority shareholders under a concert parties agreement. The remaining 66.3% is owned by public shareholders.

Total Project cost is estimated at US$140 million. The proposed IFC investment is an A loan of US$75 million equivalent in local currency, with the remaining project cost funded by Company’s internal cash.

The project will be located near the company’s headquarter and the existing bio-mechanical pulp operation in Changle Development Zone, Weifang City, Shandong Province.

IFC has completed an assessment of the Company’s corporate governance. The Company is publicly listed on Hong Kong Stock Exchange and publicly discloses in its annual report matters related to corporate governance.

This is a Category B project according to IFC’s 2012 Policy on Environmental and Social Sustainability due to limited E&S risks and/or impacts, which are expected to be site-specific and mitigated by adhering to Good International Industry Practice (GIIP) as described in the following sections. Key E&S risks and issues for this investment are: (i) implementation effectiveness of SCSPG/SKBP’s E&S management system; (ii) adequacy of HR / OHS management systems for assurance of fair and safe working conditions for permanent employees, contractors and supply chain labor, including GBV risks; (iii) water and energy efficiency; (iv) solid and liquid waste (incl. hazardous waste) treatment and disposal; (v) traceability and robustness of the E&S risk screening of wheat straw Tier I and II suppliers; (vi) government-led land acquisition; (vii) stakeholder engagement and community grievance mechanism.