China Sunshine Paper extends another loan to Qicheng Zhihui

China Sunshine Paper Holdings Company Limited announced a discloseable transaction regarding an entrusted loan agreement. On November 18, 2025, Century Sunshine, a subsidiary, entered into Entrusted Loan Agreement I with The Lending Bank and Qicheng Zhihui (as borrower), providing RMB50,000,000. This loan, financed by the group's internal resources, carries an interest rate of one-year LPR plus 395 basis points per annum, with a one-year loan period. Qicheng Zhihui will use the funds as general working capital, with interest paid monthly and principal repaid at the loan period's end.

This transaction follows a previous RMB50,000,000 loan to Qicheng Zhihui, fully repaid on November 20, 2025. The group aims to enhance the return on its cash and cash equivalents, boosting investment income and profits by securing a net interest margin. The Entrusted Loan Agreement I, aggregated with other 2024 Entrusted Loan Agreements, constitutes a discloseable transaction as applicable percentage ratios exceeded 5% but were less than 25%.

Qicheng Zhihui is primarily engaged in science and technology promotion and application services in the PRC, with 65% ownership by Changle Qicheng New Rural Development Investment Co., Ltd. and 35% by State-owned Assets Operation Center of Changle County. The directors view the agreement as being on normal commercial terms and in the company’s and shareholders’ best interests.