China Sunshine Paper Holdings announced that its wholly-owned subsidiary, Numat Paper, signed a finance lease agreement with Ping An International Financial Leasing on 31 August 2026. Under the three-year arrangement, Ping An Leasing will purchase production equipment—principally used for coated white top linerboard—from Numat Paper for RMB120.00 million and immediately lease the assets back to the subsidiary.

Key Terms • Lease structure: Sale-and-leaseback of existing machinery, including QCS scanning frames and calender machines located at Numat Paper’s Changle facility in Shandong. • Consideration: Ping An Leasing will pay RMB120.00 million for the assets, reflecting a discount to their unaudited book value of RMB141.61 million as at 25 August 2026. • Lease payments: Numat Paper will make 12 quarterly instalments over the 3-year term, totalling RMB130.50 million—comprising RMB120.00 million principal and RMB10.50 million in interest. • Interest: The rate was set through arm’s-length negotiation, taking into account market benchmarks, the lease tenor and Numat Paper’s credit profile. • Title and buy-back: Ownership transfers to Ping An Leasing upon payment of the purchase price; title will revert to Numat Paper at the end of the lease for a nominal RMB0.10 million. • Guarantees: Fellow subsidiaries Shandong Century Sunshine Paper Group, Shandong Wamat Paper, and Changle Shengshi Thermoelectricity will provide joint liability guarantees.

Regulatory Classification The transaction meets the Hong Kong Listing Rules definition of a discloseable transaction, with applicable percentage ratios exceeding 5% but below 25%. Accordingly, it requires announcement and reporting but does not mandate shareholder approval.

Financial Impact Under International Financial Reporting Standards, the deal is treated as secured borrowing rather than an asset disposal; no gain or loss will be recognised in the income statement. Management expects the proceeds to bolster group working capital without altering control of the leased equipment.

Counterparties Ping An International Financial Leasing, 69.44% owned by Ping An Insurance (Group) Company of China, Ltd., is independent of China Sunshine Paper and its connected persons.

China Sunshine Paper, listed on the Hong Kong Main Board since 2007, is engaged in the production and sale of paper products, electricity and steam through its subsidiaries.