China Sunshine Paper Holdings Company Limited (abbreviated “SUNSHINE PAPER”) announced that its non-wholly-owned subsidiary, Shandong Century Sunshine Paper Group Co., Ltd. (“Century Sunshine”), executed a loan agreement with Changle County Rifangsheng Trading Co., Ltd. (“Rifangsheng”) after trading hours on 16 June 2026.

The agreement provides Rifangsheng with a RMB 59.00 million loan carrying a fixed annual interest rate of 3.45%, benchmarked against the prevailing one-year Loan Prime Rate of 3.00% and comparable commercial bank rates. The facility has a one-year tenor; interest is payable quarterly in arrears on the 20th day of the last month of each quarter, while the principal is due in a single repayment at maturity.

Funding will be sourced entirely from SUNSHINE PAPER’s internal resources. Rifangsheng, a state-owned construction materials and equipment trading company in Shandong province, will deploy the proceeds as general working capital.

Management stated that extending the loan allows the Group to optimise returns on surplus cash while supporting an arm’s-length counterparty whose credit profile and repayment sources have been assessed as satisfactory. The board considers the commercial terms fair and in the interests of shareholders.

Under Hong Kong’s Listing Rules, the highest applicable percentage ratio for the transaction exceeds 5% but is below 25%, classifying it as a “discloseable transaction.” Consequently, the deal requires public announcement and reporting but does not necessitate shareholder approval.

SUNSHINE PAPER, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange since 2007, is primarily engaged in the production and sale of paper products, electricity and steam. Rifangsheng and its ultimate beneficial owner are independent third parties with no connected-person relationship to SUNSHINE PAPER.