China Sunshine Paper extends ¥110m in new loans to Qicheng Zhihui

China Sunshine Paper Holdings Company Limited, via its subsidiary Century Sunshine, has signed two new entrusted loan agreements, Entrusted Loan Agreement II and Entrusted Loan Agreement III, totaling RMB110,000,000 with Qicheng Zhihui as the borrower. Both agreements were signed on November 19, 2025, and mature on November 17, 2026. Entrusted Loan Agreement II provides RMB50,000,000, while Entrusted Loan Agreement III provides RMB60,000,000, with interest rates for both set at one-year LPR plus 395 basis points. Qicheng Zhihui will use the funds for general working capital.

These transactions follow previous entrusted loan agreements in 2024 and earlier in 2025, with Qicheng Zhihui having fully repaid RMB100,000,000 under prior agreements. The group's directors view these new agreements as being on normal commercial terms and in the company's and shareholders' best interests, aiming to increase investment income and profits by utilizing internal resources and benefiting from a net interest margin higher than its average borrowing cost.

Given the aggregation of these agreements over a 12-month period, the combined applicable percentage ratios exceeded 5% but were less than 25%. Consequently, these transactions are classified as discloseable under the Hong Kong Listing Rules, requiring reporting and announcement.