China Sunshine Paper Holdings Company Limited (Stock Code: 2002) announced that its non-wholly owned subsidiary, Shandong Century Sunshine Paper Group Co., Ltd. (“Century Sunshine”), has on 19 November 2025 entered into two new entrusted loan agreements – the Entrusted Loan Agreement II and the Entrusted Loan Agreement III – with Dongying Bank Co., Ltd., Shouguang Weifang Sub-branch (“the Lending Bank”) as entrusted party and Qicheng Zhihui as borrower.

Under the two agreements, Century Sunshine will provide a principal sum of RMB50,000,000 in Entrusted Loan Agreement II and RMB60,000,000 in Entrusted Loan Agreement III. Both loans carry an interest rate of one-year LPR plus 395 basis points, with a maturity date of 17 November 2026. Qicheng Zhihui is required to pay monthly interest and repay the principal on or before the maturity date. The funds for these loans are sourced from the internal resources of the Group, and Qicheng Zhihui intends to use the proceeds as general working capital.

The announcement states that these new agreements, when aggregated with other entrusted loan agreements entered with the same parties over the past 12 months (including the Entrusted Loan Agreement I and the 2024 Entrusted Loan Agreements), exceed one of the applicable percentage ratios of the Listing Rules but remain below 25%. As a result, the new transactions qualify as discloseable transactions and are subject to the reporting and announcement requirements under the Listing Rules.

Based on information provided in the announcement, Qicheng Zhihui is majority-owned by Changle Qicheng New Rural Development Investment Co., Ltd., which is wholly owned by the State-owned Assets Supervision and Administration Bureau of Changle County, and the remaining interest is held by the State-owned Assets Operation Center of Changle County. According to the announcement, the directors of China Sunshine Paper Holdings Company Limited believe these arrangements were made on normal commercial terms and will benefit the company through higher net interest margins relative to its average cost of borrowings, ultimately contributing to the Group’s profitability.