China Sunshine Paper ends profit guarantee, fully acquires target in IDC electricity pivot

China Sunshine Paper Holdings Limited announced the termination of an Adjusted Profit Guarantee and the acquisition of the remaining equity in a target company. On December 5, 2025, the company entered into separate Sale and Purchase Agreements to acquire 3,023 and 2,477 ordinary shares, respectively, for a total consideration of $1 each. This acquisition increases the Group's equity interest in the Target Company from 45.00% to 100%, making it a wholly-owned subsidiary.

The Target Company, which has shifted its business from LNG to IDC Electricity Business, recorded total revenue of $9.99 million and a net operating profit after tax of $0.57 million for the six months ended June 30, 2025. This move is expected to enhance the Group's operational efficiency, flexibility, and financial position by broadening its income base. Concurrently, the Adjusted Profit Guarantee was terminated as the parties agreed to pursue a full acquisition instead.

The Target Company also committed to repaying borrowings of $974,690.98 to Vendors' Guarantor A within three business days and $2,000,000 to Vendors' Guarantor B within ten business days, with an additional $1,087,983.11 due on the fifth calendar year from the agreement's execution date. The directors believe these transactions are fair and in the best interest of the Company and its shareholders.