China Sunshine Paper Holdings Company Limited (“Sunshine Paper”) released its audited results for the year ended 31 December 2025.

Financial Performance • Revenue fell 3.2% year-on-year to RMB7.79 billion. • Gross profit declined 8.2% to RMB1.10 billion; gross margin narrowed to 14.1% (FY2024: 14.9%). • Profit attributable to owners plunged 42.9% to RMB159.90 million. • Basic EPS dropped to RMB0.15 (FY2024: RMB0.26). • No final dividend proposed; FY2024 payout was HK5 cents per share. • Net gearing rose to 26.4% (31 Dec 2024: 16.4%).

Segment Details Paper products contributed 95.2% of revenue at RMB7.42 billion (-2.5%). Key product trends: – Specialised paper revenue grew 13.3% to RMB2.03 billion, lifting its mix to 26.1%. – White top linerboard, coated white-top linerboard, core board and corrugated paper all posted year-on-year declines. Electricity and steam sales fell 17.3% to RMB363.81 million, accounting for 4.7% of total revenue.

Cost & Expenses • Cost of sales decreased 2.3% to RMB6.69 billion, lagging the revenue contraction. • Distribution and selling expenses were broadly stable at RMB372.22 million. • Administrative expenses were flat at RMB492.91 million. • Finance costs dropped 27.3% to RMB110.00 million.

Cash Flow & Balance Sheet Highlights • Net cash from operations: RMB547.06 million (-19.6%). • Cash and restricted deposits stood at RMB2.92 billion (31 Dec 2024: RMB2.70 billion). • Net current liabilities widened slightly to RMB663.57 million. • Inventory days lengthened to 33 from 31; receivables days rose to 35 from 27.

Capital Expenditure & Investments • FY2025 capex reached RMB826.90 million (FY2024: RMB594.00 million), mainly for plant, equipment and land. • Completed an RMB85.00 million acquisition of the remaining 40% stake in Sunshine Shouguang, converting it to a wholly-owned subsidiary.

Outlook Management expects continued industry headwinds in 2026 amid weak demand and overcapacity but will focus on: – Optimising product mix toward higher-value specialised papers. – Advancing digital transformation and cost-reduction initiatives. – Strengthening talent development and enhancing risk-management capabilities.

No significant post-balance-sheet events were reported.