Sunshine Paper terminates repurchase agreement, adjusts profit guarantees

China Sunshine Paper Holdings (HKEX:2002) announced the termination of its repurchase agreement concerning the disposal of a 45% shareholding interest in a target company. The decision was made after the target company demonstrated improved performance in its IDC Electricity Business, generating a steady income stream and recording monthly gross profits of approximately US$0.6 million since November 2024. As part of the termination agreement, the 2023 and 2024 guaranteed profits were replaced with adjusted figures for 2025 (RMB45 million) and 2026 (RMB54 million). The bonus share mechanism has also been cancelled, securing Sunshine Paper's minimum 45% shareholding. The vendors will be required to transfer compensation shares or repurchase the shares if net profits fall below certain thresholds. The directors consider the termination and adjusted profit guarantee mechanism to be fair, reasonable, and in the best interests of the company and its shareholders.