Sun Paper forecasts $649.2m in 2026 related-party transactions, seeks loan approvals

Shandong Sun Paper Co. Ltd. anticipates total daily related party transactions with its controlled entities to reach up to RMB 649.2 million for 2026, as detailed in its latest announcement. These transactions, primarily involving raw material procurement, product sales, and service provision, are deemed essential for the company's operational activities. The forecasts, reviewed and approved by the board with relevant directors recusing themselves, will be presented for shareholder approval at a temporary general meeting on December 26, 2025.

In preparation for the 2026 fiscal year, the company plans to secure comprehensive credit lines totaling RMB 44.5 bn from various financial institutions, including major Chinese banks. Furthermore, Sun Paper aims to finance key projects, such as a 600,000-ton bleached chemical pulp facility and a 700,000-ton high-grade packaging paper project, through syndicated loans of up to RMB 2.5 bn and RMB 1.1 bn, respectively.

The board also approved revisions to the "Remuneration and Performance Appraisal System for Directors and Senior Management Personnel," reflecting updated policies for executive compensation and governance. This revised policy, which links compensation to performance and responsibility, will also be subject to shareholder vote at the upcoming general meeting.