Shandong Chenming guarantees subsidiaries' loans for operational resumption

Shandong Chenming Paper Holdings Limited has provided external guarantees for syndicated loans totaling RMB2.31 billion for Weifang Xingchen and for a loan granted to Jilin Xingchen, both state-owned subsidiaries. These guarantees, executed on October 28, 2025, include mortgage guarantees from Chenming Leasing and Shouguang Kunhe for Weifang Xingchen, with collateral valued at RMB23.345 million and RMB206.3541 million, respectively. Jilin Chenming provided a mortgage guarantee for Jilin Xingchen, backed by collateral totaling RMB216.75 million, and the company provided a joint and several liability guarantee for a RMB216.75 million loan.

The guarantees aim to secure funding for the company's work resumption and production, facilitating timely procurement, restoring normal operations, and enhancing profitability. According to the Listing Rules, the aggregate percentage ratio of these guarantees exceeds 5% but is below 25%, classifying them as a discloseable transaction requiring reporting and announcement but exempting them from shareholder approval. The board views these arrangements as fair and reasonable, serving the company's and shareholders' interests.

The Articles of Association, last revised on October 28, 2025, outline the company's structure and governance, including provisions for shareholder meetings and director responsibilities, which govern these transactions.