Xianhe repurposes unspent funds for new specialty paper project

Xianhe Co., Ltd. announced plans to conclude two previously funded bond projects, the "300,000-ton High-grade Paper-based Materials Project" and the "30,000-ton Thermal Sublimation Transfer Paper and Food Packaging Paper Project," both now fully implemented. The company will repurpose the remaining proceeds of CNY 62,280.19 million, including interest income, from these projects.

These unspent funds, totaling CNY 56,686.57 million, primarily from the high-grade paper-based materials project, will be directed towards a new investment: the "20,000-ton Insulating Paper, Capacitor Paper, and Other Specialty Paper Project." This new facility, to be operated by Zhejiang Zhefeng New Material Co., Ltd., a wholly-owned subsidiary, will be located in Changshan County, Quzhou City, Zhejiang Province.

The new project, which includes constructing PM11-14 papermaking workshops and related facilities, has a total investment of CNY 66,582 million. It is expected to commence operations by June 2027, enhancing Xianhe's market share and profitability in the specialty paper sector. The decision aims to optimize capital allocation and support the company's sustainable growth.