Xianhe reallocates funds from completed projects to new specialty paper venture

Xianhe Co., Ltd. announced the completion of its "Annual Production of 300,000 Tons of High-grade Paper-based Materials Project" and "Annual Production of 30,000 Tons of Heat Transfer Sublimation Base Paper and Food Packaging Paper Project," with actual expenditures of RMB 63,313.43 million and RMB 12,505.21 million respectively. These projects resulted in a combined surplus of RMB 62,280.19 million, including interest and wealth management income, primarily due to optimized procurement and cost control.

The surplus funds will be reallocated to a new "Annual Production of 20,000 Tons of Insulating Paper, Capacitor Paper, and Other Specialty Paper Project" by its wholly-owned subsidiary, Zhejiang Zhefeng New Materials Co., Ltd., with a total investment of RMB 66,582 million. This new project, expected to be completed by June 2027, aims to enhance Xianhe’s market share in the specialty paper sector.

Additionally, Xianhe approved the use of up to RMB 60,000 million of idle raised funds for cash management and temporarily supplementing working capital. This measure, valid for 12 months, is designed to improve capital efficiency without impacting ongoing investment projects. All actions have been approved by the board of directors and are subject to shareholder approval for the new project.