China Sunshine Paper Holdings Company Limited (Stock Code: 2002) disclosed an update on its Sale and Purchase Agreement, including a termination of the Adjusted Profit Guarantee. According to the announcement, borrower repayments totaling US$974,690.98 to Vendors’ Guarantor A and US$2,000,000 to Vendors’ Guarantor B have been fully settled, leaving the Target Group with approximately US$11 million in total assets, US$8 million in total liabilities, and US$400,000 in cash as of 31 December 2025.

The Target Group’s revenue for the three years ended 31 December 2025 were US$10.83 million (2023), US$12.61 million (2024), and US$15.20 million (2025). Net loss figures in the same period were US$10.21 million, US$1.35 million, and US$3.15 million, respectively. The announcement attributes the larger net loss in 2025 mainly to hosting load reductions after two major customer terminations, asset impairments for compute-related equipment (approximately US$1.75 million), and high management costs from the previous management structure.

China Sunshine Paper’s plan for the Target Group prioritizes the IDC Electricity Business, particularly in the Dallas market, by enhancing operational discipline, improving contract terms, and strengthening customer relationships. The Target Group’s LNG segment will be maintained on a value-preservation basis, and the company is considering a potential disposal of related assets, aiming to allocate more resources to Dallas-based operations.

Reasons for proceeding with the acquisition of the remaining 55% equity interest include the strategic importance of IDC-related power capacity in Texas, the potential for improved profitability under unified governance, and the preference for a wholly-owned structure to retain any future gains. Post-acquisition, the board perceives favorable prospects for the data center power market, citing growing demand for high-density computing capacity and the Target Group’s capacity utilization initiatives that have already improved operational efficiency.