Jingxing Paper guarantees subsidiary loan, expands investments, hedges FX risk

Zhejiang Jingxing Paper Joint Stock (the "Company") announced a guarantee for its wholly-owned subsidiary, Jingxing Holdings (Malaysia) Co., Ltd., for a loan up to 426 million yuan from the Asian Development Bank. This guarantee, approved by the board on December 8, 2025, and subject to shareholder approval on December 24, 2025, will support Jingxing Holdings (Malaysia)'s second-phase project. The Malaysian subsidiary reported total assets of 2.3bn yuan and a net asset value of 929.7m yuan as of December 31, 2024.

The Company will also acquire a 15 million yuan capital contribution in Huahai Jinpu Venture Capital (Jinan) Partnership (Limited Partnership) through its subsidiary, Shanghai Jingxing Industrial Investment Co., Ltd., increasing its total commitment to 35 million yuan. Additionally, the Company approved foreign exchange derivative transactions for hedging purposes, with a total amount not exceeding $30m, valid for 12 months. This initiative aims to mitigate foreign exchange rate fluctuations.

These strategic decisions aim to enhance the Company's operational stability, diversify investment channels, and manage financial risks effectively. Total outstanding external guarantees for the Company and its subsidiaries amount to 1.39bn yuan.