Shandong Sun Paper announces strategic investments, governance changes

Shandong Sun Paper Co., Ltd. held its Ninth Board of Directors' Fifth Meeting on August 26, 2025, approving several key initiatives. The company plans to invest in a 600,000-ton bleached chemical pulp and alkali recovery project with an estimated investment of RMB3.51 bn, and a 700,000-ton high-grade packaging paper project with an estimated investment of RMB1.53 bn, both located in the Yandian Factory District of the Shandong base. These investments aim to enhance pulp and packaging paper production capacity, reduce reliance on external pulp, and improve cost control and operational efficiency, aligning with the company's "433" long-term development strategy.

In parallel, the board approved significant revisions to the company’s governance documents, including the Articles of Association and various management systems. Key changes involve adjusting the board size from 7 to 9 directors, eliminating the Supervisory Board, and transferring its functions to the Board’s Audit Committee. Additionally, the three-year dividend return plan (2024-2026) was updated, committing to an annual cash dividend distribution of not less than 20% of the parent company’s distributable profit, reflecting the company’s emphasis on shareholder returns.

Furthermore, the board approved the addition of Mr. Pang Fucheng as a new non-independent director, bringing the total number of directors to 9. These changes, pending approval at the first extraordinary general meeting in 2025, are designed to optimize governance, ensure sustainable development, and support the company's strategic growth initiatives. The company's unaudited semi-annual financial report for 2025 shows operating revenue of RMB19.11 bn and net profit attributable to shareholders of RMB1.78 bn.