Group 1 - The core viewpoint of the article is that Sunshine Paper Holdings (02002) reported a decline in its mid-year performance for 2025, with a significant drop in both revenue and profit [1] - The company's revenue for the period was 3.573 billion yuan, representing a year-on-year decrease of 9.71% [1] - The profit attributable to shareholders was 83.184 million yuan, which reflects a substantial year-on-year decline of 56.09% [1] - The basic earnings per share for the company stood at 0.08 yuan [1]

Interim Results Announcement [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company's unaudited interim results for H1 2025 show declines in revenue, gross profit, and profit attributable to owners Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,572.5 | 3,956.6 | -9.7% | | Gross Profit | 538.6 | 566.4 | -4.9% | | Profit Attributable to Owners of the Company | 83.2 | 189.4 | -56.1% | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents detailed unaudited financial data on income, profit, assets, liabilities, and equity for the six months ended June 30, 2025 [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue decreased year-on-year, with profit for the period at RMB 105,817 thousand Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,572,532 | 3,956,623 | | Cost of sales | (3,033,894) | (3,390,221) | | Gross profit | 538,638 | 566,402 | | Profit for the period | 105,817 | 217,914 | | Profit for the period attributable to owners of the Company | 83,184 | 189,440 | | Basic and diluted earnings per share (RMB) | 0.08 | 0.18 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total non-current assets were RMB 7,659,765 thousand and total current assets were RMB 5,086,060 thousand Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 7,659,765 | 7,553,930 | | Current assets | 5,086,060 | 4,554,412 | | Current liabilities | 5,495,691 | 5,179,498 | | Net current liabilities | (409,631) | (625,086) | | Equity attributable to owners of the Company | 4,937,590 | 4,852,828 | | Total equity | 5,393,894 | 5,300,000 | | Non-current liabilities | 1,856,240 | 1,628,844 | [Notes to the Condensed Consolidated Interim Financial Statements](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation, significant accounting policies, and breakdowns of key financial statement items and notes [General Information](index=5&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) China Sunshine Paper Holdings Company Limited is incorporated in the Cayman Islands and its shares are listed on the Hong Kong Stock Exchange - The company is incorporated in the Cayman Islands with its shares listed on the Main Board of the Hong Kong Stock Exchange[8](index=8&type=chunk) - The Group's principal activities are the production/manufacturing and sale of paper products, electricity, and steam[9](index=9&type=chunk) [Basis of Preparation](index=5&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The financial statements are prepared in accordance with IAS 34 and the Listing Rules on a going concern basis despite net current liabilities - The financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Stock Exchange[10](index=10&type=chunk) - As of June 30, 2025, the Group had **net current liabilities of approximately RMB 409,631,000**, but the directors believe the company has sufficient working capital and prepared the statements on a going concern basis[10](index=10&type=chunk) [Significant Accounting Policies](index=5&type=section&id=%E9%87%8D%E5%A4%A7%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The financial statements are prepared on a historical cost basis, with certain assets measured at fair value, and a new accounting standard was adopted - The financial statements are prepared on the historical cost basis, with certain assets measured at fair value[11](index=11&type=chunk) - The adoption of the amendment to IAS 21 "Lack of Exchangeability" had **no material impact** on the Group's current or prior period results and financial position[11](index=11&type=chunk)[12](index=12&type=chunk) [Revenue](index=6&type=section&id=%E6%94%B6%E5%85%A5) In H1 2025, the Group's revenue was primarily derived from the sale of paper products and electricity and steam, totaling RMB 3,572,532 thousand Revenue by Segment | Segment | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Paper products | 3,365,539 | 3,729,815 | | Electricity and steam | 206,993 | 226,808 | | Total | 3,572,532 | 3,956,623 | Revenue by Geographical Market | Geographical Market | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | China | 3,529,053 | 3,897,881 | | Overseas | 43,479 | 58,742 | [Segment Information](index=7&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's business is divided into two operating segments, Paper Products and Electricity and Steam, for internal reporting purposes [Segment Revenue and Results](index=7&type=section&id=%E5%88%86%E9%83%A8%E6%94%B6%E5%85%A5%E5%8F%8A%E6%A5%AD%E7%B8%BE) In H1 2025, the Paper Products segment generated external revenue of RMB 3,365,539 thousand and the Electricity and Steam segment generated RMB 206,993 thousand Analysis of Segment Revenue and Profit | Segment | H1 2025 External Revenue (RMB thousand) | H1 2024 External Revenue (RMB thousand) | H1 2025 Segment Profit (RMB thousand) | H1 2024 Segment Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Paper products | 3,365,539 | 3,729,815 | 449,403 | 473,528 | | Electricity and steam | 206,993 | 226,808 | 175,601 | 183,596 | | Total | 3,572,532 | 3,956,623 | 625,004 | 657,124 | [Reconciliation of Segment Profit](index=8&type=section&id=%E5%88%86%E9%83%A8%E7%9A%84%E5%88%A9%E6%BD%A4%E5%B0%8D%E8%B3%AC) The reconciliation shows the adjustments made to total segment profit to arrive at the consolidated profit before income tax Reconciliation of Segment Profit | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Segment profit | 625,004 | 657,124 | | Unrealised profit on inter-segment sales | (80,271) | (86,316) | | Other income | 79,987 | 172,264 | | Other net gains or losses | (29,125) | 20,561 | | Distribution and selling expenses | (181,185) | (186,470) | | Administrative expenses | (237,374) | (215,854) | | Reversal of/(provision for) expected credit losses on financial assets, net | 77,477 | (373) | | Loss on fair value change of investment properties | (1,215) | (74) | | Share of loss of a joint venture | (12,019) | (566) | | Finance costs | (48,531) | (76,534) | | Consolidated profit before income tax | 192,748 | 283,762 | [Other Income and Other Net Gains or Losses](index=9&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%88%96%E8%99%A7%E6%90%8D%E6%B7%A8%E9%A1%8D) Other income in H1 2025 was RMB 80,312 thousand, while other net gains or losses recorded a loss of RMB 5,613 thousand Details of Other Income | Other Income Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Total interest income | 30,950 | 49,019 | | Government grants | 33,894 | 114,882 | | Logistics service income | 11,618 | 5,961 | | Total other income | 80,312 | 173,152 | Details of Other Net Gains or Losses | Other Net Gains or Losses Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net gain on sale of scrap materials | 20,883 | 16,642 | | Fair value change of financial assets at FVTPL | (83,691) | (870) | | Net exchange loss | (13,548) | (3,672) | | Sale of carbon emission allowances | 18,453 | 22,712 | | Gain on waiver of consideration payable | 29,196 | — | | Gain on step acquisition of a joint venture | 11,848 | — | | Total other net gains or losses | (5,613) | 42,707 | - Sunshine Oji became a wholly-owned subsidiary of the Company on June 26, 2025[19](index=19&type=chunk) [Finance Costs](index=10&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs for H1 2025 decreased to RMB 60,682 thousand, mainly due to increased interest capitalization for construction in progress Details of Finance Costs | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Total interest expense | 77,439 | 94,716 | | Less: Interest capitalized in construction in progress | (16,757) | (5,989) | | Finance costs | 60,682 | 88,727 | - The annual capitalization rate for borrowing costs ranged from **4.79% to 5.34%**[20](index=20&type=chunk) [Income Tax Expense](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for H1 2025 increased to RMB 86,931 thousand, with the effective tax rate rising to 45.1% Details of Income Tax Expense | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax (PRC Enterprise Income Tax) | 61,332 | 83,807 | | Deferred tax expense | 25,599 | (17,959) | | Expense for the period | 86,931 | 65,848 | - The effective tax rate for H1 2025 was **45.1%**, compared to 23.2% in H1 2024[48](index=48&type=chunk) [Profit Before Income Tax](index=11&type=section&id=%E9%除%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) Profit before income tax is stated after charging various expenses including staff costs, inventory costs, and depreciation Items Charged to Profit Before Income Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Total staff costs | 266,648 | 233,552 | | Cost of inventories recognised as an expense | 2,409,957 | 2,425,845 | | Depreciation of property, plant and equipment | 221,099 | 227,147 | | Research and development expenses | 2,433 | 614 | [Dividends](index=11&type=section&id=%E8%82%A1%E6%81%AF) The company approved a final dividend for 2024 but resolved not to declare an interim dividend for H1 2025 - A final dividend for 2024 of **HK 5 cents per ordinary share**, totaling HK$53,257,000 (approximately RMB 49,316,000), was approved in H1 2025[23](index=23&type=chunk) - The Board of Directors resolved **not to declare an interim dividend** for the first half of 2025[23](index=23&type=chunk) [Earnings Per Share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share for H1 2025 decreased significantly to RMB 0.08 from RMB 0.18 in the prior year period Calculation of Earnings Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousand) | 83,184 | 189,440 | | Weighted average number of ordinary shares in issue (thousand shares) | 1,065,144 | 1,065,144 | | Basic and diluted earnings per share (RMB) | 0.08 | 0.18 | [Trade Receivables](index=12&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables increased significantly to RMB 960,963 thousand, with the majority aged within 0-30 days Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 666,439 | 418,510 | | 31 to 90 days | 219,113 | 159,846 | | 91 to 365 days | 75,411 | 53,783 | | Total | 960,963 | 632,139 | - The provision for expected credit losses on trade receivables was **RMB 28,458 thousand** at the period end[25](index=25&type=chunk) [Bills Receivable](index=13&type=section&id=%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, total bills receivable increased to RMB 216,125 thousand, with the majority maturing within 0-90 days Ageing Analysis of Bills Receivable | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 153,300 | 89,550 | | 91 to 180 days | 62,825 | 55,352 | | 181 to 365 days | — | 71 | | Total | 216,125 | 144,973 | - As of June 30, 2025, bills receivable discounted to banks with recourse amounted to **RMB 28,597 thousand**[26](index=26&type=chunk) [Trade Payables](index=13&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables decreased slightly to RMB 885,063 thousand, with the majority aged within 0-90 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 702,257 | 738,272 | | 91 to 365 days | 106,160 | 116,559 | | Over one year | 76,646 | 68,254 | | Total | 885,063 | 923,085 | [Bills Payable](index=14&type=section&id=%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total bills payable increased significantly to RMB 352,471 thousand, with all bills maturing within 12 months Ageing Analysis of Bills Payable | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 204,871 | 82,890 | | 91 to 180 days | 147,600 | 86,070 | | Total | 352,471 | 168,960 | [Lease Liabilities](index=14&type=section&id=%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, the present value of lease liabilities was RMB 52,357 thousand, secured by the related assets Present Value Analysis of Lease Liabilities | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Present value of lease liabilities | 52,357 | 56,355 | | Amount due for settlement within 12 months | (5,173) | (5,172) | | Amount due for settlement after 12 months | 47,184 | 51,183 | - Lease liabilities are secured by the related assets[30](index=30&type=chunk) - The total cash outflow for leases during the interim period was **RMB 6,247 thousand**[30](index=30&type=chunk) [Discounted Bills Financing](index=15&type=section&id=%E8%B2%BC%E7%8F%BE%E7%A5%A8%E6%93%9A%E8%9E%8D%E8%B3%87) As of June 30, 2025, total discounted bills financing amounted to RMB 1,310,896 thousand, primarily from discounted bills receivable from subsidiaries Source of Discounted Bills Financing | Source | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Discounted bills receivable from third parties | 28,597 | 112 | | Discounted bills receivable from the Company's subsidiaries | 1,282,299 | 1,520,000 | | Total | 1,310,896 | 1,520,112 | - Bank deposits of **RMB 1,024,930,000** were pledged to the issuing banks upon obtaining the original intra-group bills[32](index=32&type=chunk) [Bank Borrowings](index=15&type=section&id=%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) In H1 2025, the Group raised new bank loans of RMB 2,311,813 thousand and repaid loans of RMB 1,891,919 thousand - In H1 2025, the Group raised new loans of **RMB 2,311,813 thousand** and repaid loans of **RMB 1,891,919 thousand**[31](index=31&type=chunk) - As of June 30, 2025, property, plant and equipment, land use rights, and investment properties with a value of **RMB 2,344,154 thousand** were pledged as security for bank borrowings[31](index=31&type=chunk) [Other Borrowings](index=16&type=section&id=%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2025, total other borrowings amounted to RMB 167,766 thousand, including sale-and-leaseback obligations and funds from a partnership Details of Other Borrowings | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current: Sale-and-leaseback obligations | 68,771 | 137,513 | | Current: Partnership | 75,315 | 75,315 | | Non-current: Sale-and-leaseback obligations | 23,680 | 163 | | Total other borrowings | 167,766 | 212,991 | - A partnership injected **RMB 276,500,000** into the Group, of which **RMB 75,315,000** was recognized as other borrowings[33](index=33&type=chunk) [Share Capital](index=17&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the issued and fully paid-up share capital consisted of 1,065,144,359 shares with a par value of HK$0.10 each Share Capital Movement | Item | Number of Shares | Share Capital (RMB thousand) | | :--- | :--- | :--- | | As at January 1, 2024 | 1,129,854,359 | 100,445 | | Repurchase and cancellation of shares | (64,710,000) | (5,864) | | As at June 30, 2025 | 1,065,144,359 | 94,581 | - The company repurchased and cancelled a portion of its ordinary shares in 2023 and 2024[34](index=34&type=chunk) [Capital Commitments](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's contracted capital expenditure totaled RMB 235,171 thousand Details of Capital Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 38,856 | 33,796 | | Investment cost in a partnership | 196,315 | 196,315 | | Total | 235,171 | 230,111 | [Significant Events After the Reporting Period](index=18&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) The Group had no significant events after the reporting period up to the date of this announcement - The Group had **no significant events** after the reporting period up to the date of this announcement[37](index=37&type=chunk) [Operational Review](index=19&type=section&id=%E9%81%8B%E7%87%9F%E5%9B%9E%E9%A1%A7) In H1 2025, the company navigated a challenging economic environment, resulting in lower revenue and profit despite improved management capabilities [Macroeconomic and Industry Environment](index=19&type=section&id=%E5%AE%8F%E8%A7%80%E7%B6%93%E6%BF%9F%E5%8F%8A%E8%A1%8C%E6%A5%AD%E7%92%B0%E5%A2%83) The global and domestic economies faced challenges in H1 2025, putting pressure on the paper and paper products industry - In H1 2025, the global economy faced multiple challenges, while China's manufacturing sector dealt with overcapacity and insufficient demand[38](index=38&type=chunk) Key Indicators for the Paper and Paper Products Industry | Indicator (Paper and Paper Products Industry) | Jan-Jun 2025 | Y-o-Y Change (%) | | :--- | :--- | :--- | | Total Profit | RMB 17.57 billion | -21.4% | | Operating Revenue | RMB 681.21 billion | -2.3% | [Company's Business Strategy and Performance](index=19&type=section&id=%E5%85%AC%E5%8F%B8%E7%B6%93%E7%87%9F%E7%AD%96%E7%95%A5%E8%88%87%E8%A1%A8%E7%8F%BE) The company implemented strategic initiatives focused on innovation and cost reduction, leading to improved liquidity despite lower sales volume and revenue - The company implemented a management theme of "continuous innovation, transformative breakthroughs, refined cost reduction, and solid execution"[39](index=39&type=chunk) Company's Operating Performance | Indicator | H1 2025 | H1 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | | Machine-made paper sales volume | 967,000 tons | 1,015,000 tons | -4.73% | | Operating revenue | RMB 3.57 billion | RMB 3.96 billion | -9.7% | | Profit attributable to owners of the Company | RMB 83.18 million | RMB 189.44 million | -56.1% | - The **current ratio improved to 0.93** from 0.88 at the end of 2024; the ratio of finance costs to revenue **decreased to 1.7%** from 2.2%; and the inventory turnover rate decreased to 5.08 times from 5.3 times[39](index=39&type=chunk)[40](index=40&type=chunk) [Business Outlook](index=20&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) The company will focus on niche markets and product innovation to navigate intensified competition and aims to enhance efficiency through its full acquisition of Sunshine Oji - In the second half of the year, the paper industry will face severe "involution," with a trend towards optimization and differentiation among competitors[41](index=41&type=chunk) - The company will focus on niche markets, producing high-quality packaging paper and insisting on a **differentiation strategy**[41](index=41&type=chunk) - The company acquired the remaining 40% stake in Sunshine Oji to make it a **100% owned subsidiary**, aiming to improve management efficiency, create synergies, and enhance innovation in specialty paper products[41](index=41&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section analyzes the company's financial performance in H1 2025, covering revenue, costs, profitability, expenses, and liquidity [Revenue Analysis](index=21&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue for H1 2025 was RMB 3,572.5 million, a decrease of 9.7% year-on-year, driven by lower sales prices and volume - Total revenue for H1 2025 was **RMB 3,572.5 million**, a decrease of **9.7%** from H1 2024, mainly due to lower sales prices and volume[42](index=42&type=chunk) Sales and Gross Profit Margin by Business Segment | Business Segment | H1 2025 Sales (RMB thousand) | H1 2024 Sales (RMB thousand) | H1 2025 Gross Margin (%) | H1 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | White-top linerboard | 671,499 | 757,880 | 17.0 | 16.5 | | Coated white-top linerboard | 817,174 | 931,273 | 14.4 | 13.8 | | Paper tube | 276,977 | 289,329 | 19.5 | 18.2 | | Specialised paper products | 819,623 | 880,807 | 9.9 | 11.2 | | Corrugating medium | 780,266 | 870,526 | 10.6 | 7.9 | | Subtotal for paper products sales | 3,365,539 | 3,729,815 | 13.4 | 12.7 | | Electricity and steam sales | 206,993 | 226,808 | 29.5 | 28.0 | | Total revenue | 3,572,532 | 3,956,623 | 15.1 | 14.3 | [Cost of Sales](index=21&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales for H1 2025 was RMB 3,033.9 million, a decrease of 10.5% year-on-year, in line with the decline in revenue - Cost of sales for H1 2025 was **RMB 3,033.9 million**, a decrease of **10.5%** from H1 2024, consistent with the decrease in revenue[44](index=44&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit for H1 2025 decreased to RMB 538.6 million, but the gross profit margin increased to 15.1% from 14.3% in the prior year period Gross Profit and Gross Profit Margin Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Gross Profit | 538.6 | 566.4 | | Gross Profit Margin | 15.1% | 14.3% | [Other Income and Other Net Gains or Losses](index=22&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%88%96%E8%99%A7%E6%90%8D%E6%B7%A8%E9%A1%8D) Other income for H1 2025 was RMB 80.3 million, while other net gains or losses recorded a loss of RMB 5.6 million - Other income for H1 2025 was **RMB 80.3 million**, primarily from interest income, government grants, and service fees[46](index=46&type=chunk) - Other net gains or losses for H1 2025 was a **loss of RMB 5.6 million**, mainly due to a fair value loss on financial assets at FVTPL (RMB 83.7 million) and a net exchange loss (RMB 13.5 million)[46](index=46&type=chunk) [Distribution and Selling Expenses](index=22&type=section&id=%E5%88%86%E9%8A%B7%E5%8F%8A%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Distribution and selling expenses for H1 2025 were RMB 181.2 million, representing an increased proportion of total revenue at 5.1% Distribution and Selling Expenses Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Distribution and selling expenses | 181.2 | 186.5 | 5.1% | 4.7% | [Administrative Expenses](index=22&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses for H1 2025 increased to RMB 243.0 million, representing 6.8% of total revenue Administrative Expenses Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Administrative expenses | 243.0 | 222.3 | 6.8% | 5.6% | [Finance Costs](index=22&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs for H1 2025 decreased significantly by 31.6% to RMB 60.7 million, representing 1.7% of total revenue Finance Costs Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Finance costs | 60.7 | 88.7 | 1.7% | 2.2% | [Share of Loss of a Joint Venture](index=22&type=section&id=%E5%88%86%E4%BD%94%E4%B8%80%E5%AE%B6%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E8%99%A7%E6%90%8D) The company's share of loss from Sunshine Oji increased substantially to RMB 12.0 million in H1 2025 Share of Loss of a Joint Venture | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Share of loss of Sunshine Oji | 12.0 | 0.6 | [Income Tax Expense](index=22&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for H1 2025 increased to RMB 86.9 million, with the effective tax rate rising to 45.1% Income Tax Expense and Effective Tax Rate | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Effective Tax Rate (2025) | Effective Tax Rate (2024) | | :--- | :--- | :--- | :--- | :--- | | Income tax expense | 86.9 | 65.8 | 45.1% | 23.2% | [Profit and Total Comprehensive Income](index=22&type=section&id=%E5%88%A9%E6%BD%A4%E5%8F%8A%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E7%B8%BD%E9%A1%8D) Profit attributable to owners of the Company for H1 2025 was RMB 83.2 million, a significant decrease from the prior year period Profit for the Period Attributable to Owners of the Company | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 83.2 | 189.4 | [Significant Investments](index=23&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group did not hold any significant investments during the first half of 2025 - The Group did not hold any **significant investments** during the first half of 2025[50](index=50&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=23&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) On June 16, 2025, the company's subsidiary acquired the remaining 40% equity interest in Sunshine Oji, making it a wholly-owned subsidiary - On June 16, 2025, the company's subsidiary Century Sunshine acquired a **40% equity interest in Sunshine Oji for RMB 85,000,000**[51](index=51&type=chunk) - Following the acquisition, Sunshine Oji became a **wholly-owned subsidiary** of the Company, and its financial results will be consolidated into the Group's statements[51](index=51&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's operations are supported by cash from operations, bank borrowings, and credit facilities, with an improved current ratio but higher gearing [Working Capital, Gearing Ratio and Financial Resources Overview](index=23&type=section&id=%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91%E3%80%81%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E6%A6%82%E8%A6%BD) The Group funds its operations primarily through operating cash flow and borrowings, with a net gearing ratio that increased to 27.8% - The Group primarily funds its operations with cash generated from operations, bank borrowings, and credit facilities[52](index=52&type=chunk) Liquidity and Financial Resources Overview | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Restricted bank deposits, cash and bank balances | 2,567.9 | 2,697.7 | | Total debt | 4,068.3 | 3,567.6 | | Net gearing ratio | 27.8% | 16.4% | [Inventory Turnover](index=23&type=section&id=%E5%AD%98%E8%B2%A8%E9%80%B1%E8%BD%89) Inventory increased to RMB 686.9 million as of June 30, 2025, with turnover days increasing to 36 days Inventory and Turnover Days | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Inventory | 686.9 | 506.5 | Inventory Turnover Days | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Inventory turnover days | 36 days | 34 days | [Trade Receivables Turnover](index=23&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E9%80%B1%E8%BD%89) Trade receivables increased to RMB 961.0 million as of June 30, 2025, with turnover days increasing to 41 days Trade Receivables and Turnover Days | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Trade receivables | 961.0 | 632.1 | Trade Receivables Turnover Days | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Trade receivables turnover days | 41 days | 30 days | [Trade Payables Turnover](index=23&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E9%80%B1%E8%BD%89) Trade payables decreased to RMB 885.1 million as of June 30, 2025, with turnover days increasing to 54 days Trade Payables and Turnover Days | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Trade payables | 885.1 | 923.1 | Trade Payables Turnover Days | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Trade payables turnover days | 54 days | 51 days | [Current Ratio](index=23&type=section&id=%E6%B5%81%E5%8B%95%E6%AF%94%E7%8E%87) The current ratio improved to 0.93 times as of June 30, 2025, from 0.88 times at the end of 2024 Current Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current ratio | 0.93 times | 0.88 times | [Capital Expenditure](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure in H1 2025 amounted to approximately RMB 429.9 million, mainly for new production line equipment and facilities - Capital expenditure in H1 2025 was approximately **RMB 429.9 million**[56](index=56&type=chunk) - It was primarily related to the acquisition of property, plant, and equipment for new production lines and the construction of supporting facilities[56](index=56&type=chunk) [Capital Commitments and Contingent Liabilities](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had contracted capital commitments of RMB 235.2 million and no contingent liabilities - As of June 30, 2025, contracted capital commitments amounted to **RMB 235.2 million**[57](index=57&type=chunk) - As of June 30, 2025, there were **no contingent liabilities**[58](index=58&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, assets with a carrying value of RMB 2,334.2 million were pledged as security for various financing arrangements - As of June 30, 2025, assets with a carrying value of **RMB 2,334.2 million** were pledged[59](index=59&type=chunk) - The pledged assets served as security for bank and other loans, discounted bills financing, bills payable, and lease liabilities[59](index=59&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=%E5%8C%AF%E5%85%8C%E9%A2%A8%E9%9A%AA) The Group's foreign exchange risk at the operational level is not significant as its functional and reporting currency is the Renminbi - The Group's functional and reporting currency is the Renminbi, and its business transactions are mainly conducted in Renminbi, making operational foreign exchange risk **not significant**[60](index=60&type=chunk) - The company continuously monitors foreign exchange risk and is prepared to take hedging measures if necessary[61](index=61&type=chunk) [Notes on Financial Ratios](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87%E9%99%84%E8%A8%BB) This section provides the calculation methodologies for key financial ratios, including turnover days, current ratio, and net gearing ratio - The calculation methods for inventory turnover days, trade receivables turnover days, trade payables turnover days, current ratio, and net gearing ratio are provided[62](index=62&type=chunk) [Corporate Governance](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group is committed to high standards of corporate governance and complied with all code provisions of the Corporate Governance Code in H1 2025 [Corporate Governance Practices](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company is dedicated to high standards of corporate governance and complied with all relevant code provisions during H1 2025 - The company is committed to high standards of corporate governance and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during H1 2025[63](index=63&type=chunk) [Model Code for Securities Transactions by Directors](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code for Securities Transactions by Directors, and all directors have confirmed their compliance - The company has adopted the Model Code for Securities Transactions by Directors, and all directors have confirmed their compliance[64](index=64&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Board has established an Audit Committee composed of three independent non-executive directors to oversee financial reporting and internal controls - The Audit Committee consists of **three independent non-executive directors**, with Ms. Zhang Tao as the chairwoman[65](index=65&type=chunk) - The committee's main functions are to review and supervise the financial reporting process, internal control, and risk management systems, and it has reviewed the unaudited interim financial statements for H1 2025[65](index=65&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had approximately 4,400 employees, with staff costs totaling RMB 266.6 million for the first half of the year - As of June 30, 2025, the Group had approximately **4,400 employees**[66](index=66&type=chunk) Staff Costs | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Staff costs | 266.6 | 233.6 | - The remuneration policy aims to attract, retain, and motivate talented individuals, with compensation determined based on job nature, position, and market standards[66](index=66&type=chunk) [Interim Dividend](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare an interim dividend for the first half of 2025 - The Board of Directors has resolved **not to declare an interim dividend** for the first half of 2025[67](index=67&type=chunk) [Purchase, Sale or Redemption of Securities](index=26&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E8%AD%89%E5%88%B8) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares during H1 2025 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares during H1 2025[68](index=68&type=chunk) - As of June 30, 2025, the number of treasury shares held by the company was **zero**[68](index=68&type=chunk) [Publication of Interim Report on the Stock Exchange's Website](index=26&type=section&id=%E6%96%BC%E8%81%AF%E4%BA%A4%E6%89%80%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement is available on the websites of the Stock Exchange and the company, with the full interim report to follow - This announcement has been published on the websites of the Stock Exchange and the company[69](index=69&type=chunk) - The interim report containing all information required by the Listing Rules will be dispatched to shareholders and published in due course[69](index=69&type=chunk) [Other Information](index=26&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section includes an acknowledgement from the Board and a list of the Board of Directors as of the announcement date [Acknowledgement](index=26&type=section&id=%E8%87%B4%E8%AC%9D) The Board of Directors expresses its gratitude to shareholders, business partners, and all employees for their continued support - The Board of Directors thanks shareholders, business partners, and all employees for their support[70](index=70&type=chunk) [Board of Directors](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) As of the announcement date, the Board of Directors comprises executive, non-executive, and independent non-executive directors - The Board of Directors includes executive, non-executive, and independent non-executive directors[72](index=72&type=chunk) - Mr. Wang Dongxing serves as the **Chairman of the Board**[71](index=71&type=chunk)[72](index=72&type=chunk)

Group 1 - The company, Sunshine Paper Holdings (02002.HK), announced that its board meeting will be held on August 28, 2025, to consider and approve the unaudited interim results for the six months ending June 30, 2025, and to consider the declaration of an interim dividend, if any [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部 分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 CHINA SUNSHINE PAPER HOLDINGS COMPANY LIMITED 中國陽光紙業控股有限公司 * （於開曼群島註冊成立的有限公司） （股份代號：2002） 中國陽光紙業控股有限公司（「本公司」）董事會（「董事會」）宣佈，董事會會議將於二 零二五年八月二十八日（星期四）舉行，藉以考慮及批准（其中包括）本公司及其子公 司截至二零二五年六月三十日止六個月的未經審核中期業績及考慮宣派中期股息 （如有）。 董事會會議通告 承董事會命 中國山東省濰坊，二零二五年八月十五日 於本公佈日期，本公司董事包括： 中國陽光紙業控股有限公司 主席 王東興 執行董事： 王東興先生、施衛新先生、 王長海先生及慈曉雷先生 吳蓉女士及張曉暉先生 章濤女士、王澤風先生及 焦捷女士 * 僅供識別 非執行董事： 獨立非執行董事： ...

Core Viewpoint - Sunshine Paper Holdings (02002.HK) anticipates a profit decline of approximately 55% to 65% for the six months ending June 30, 2025, compared to the same period in 2024 due to several adverse factors [1] Group 1: Financial Performance - The expected profit decline is attributed to a decrease in paper prices, leading to reduced revenue and gross profit [1] - A decline in value-added tax has resulted in a decrease in unconditional government subsidies [1] - The sluggish real estate market in China has exacerbated operating losses for Sunshine Prince (Shouguang) Specialty Paper Co., Ltd., which will transition from an associate to a wholly-owned subsidiary by June 30, 2025 [1] - There are also fair value losses on financial assets accounted for at fair value [1] Group 2: Management Outlook - The board of directors believes that the overall financial condition and operations of the group remain stable and sound [1] - The management maintains an optimistic outlook on the group's long-term growth and development [1]

Core Viewpoint - Sunshine Paper Holdings (02002) anticipates a decline in profit attributable to shareholders for the six months ending June 30, 2025, by approximately 55% to 65% compared to the same period in 2024 [1] Group Performance - The expected performance downturn is primarily attributed to a decrease in paper product prices, leading to a decline in revenue and gross profit [1] - A reduction in value-added tax has resulted in a decrease in unconditional government subsidies [1] - The sluggish real estate market in China has exacerbated operating losses for Sunshine Prince (Shouguang) Specialty Paper Co., Ltd., which will transition from an associate to a wholly-owned subsidiary by June 30, 2025 [1] - There are also fair value losses on financial assets measured at fair value through profit or loss [1] Financial Outlook - Despite the anticipated decline in profit, the board believes that the overall financial condition and operations of the group remain sound and stable [1] - The company maintains an optimistic outlook for long-term growth and development [1]

Group 1 - The company Sunshine Paper (02002) anticipates a decline in profit attributable to shareholders of approximately 55% to 65% for the six months ending June 30, 2025, compared to the same period in 2024 [1] - The decline in performance is primarily attributed to a decrease in paper product prices, leading to reduced revenue and gross profit [1] - The company also faces challenges due to a downturn in the Chinese real estate market, which has exacerbated losses at its subsidiary, Sunshine Prince (Shouguang) Specialty Paper Co., Ltd [1] Group 2 - The company reports a decrease in unconditional government subsidies due to a reduction in value-added tax [1] - Despite the challenges, the board believes that the overall financial condition and operations of the company remain stable and robust [1] - The company maintains an optimistic outlook for its long-term growth and development [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部 分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 由於本公司仍正在落實本集團截至二零二五年六月三十日止六個月之業績，本公佈 所載資料僅為董事會根據目前可得之資料對本集團該期間之管理賬目作出之初步評 估，並非以經本公司核數師審核或審閱或經本公司審核委員會審閱之任何數字或資 料為依據。 有關本集團業績之進一步詳情將根據上市規則於公佈本集團截至二零二五年六月三 十日止六個月之業績時披露。 CHINA SUNSHINE PAPER HOLDINGS COMPANY LIMITED 中國陽光紙業控股有限公司 * （於開曼群島註冊成立的有限公司） （股份代號：2002） 盈利警告 本公佈乃由中國陽光紙業控股有限公司（「本公司」）根據香港聯合交易所有限公司證 券上市規則（「上市規則」）第13.09條及香港法例第571章證券及期貨條例第XIVA部 項下內幕消息條文（定義見上市規則）作出。 本公司董事會（「董事會」）謹此知會本公司股東及有意投資者，根據對目前可得之資 料作 ...

Group 1 - The paper industry in Hong Kong is experiencing a strong upward trend, with companies like Nine Dragons Paper and Chenming Paper seeing increases of over 7%, reaching new highs [1] - A price increase wave has begun in the paper industry since August, with leading companies such as Nine Dragons Paper, Lee & Man Paper, and Shanying International announcing price hikes effective from August 1 [1] - This marks the fourth round of price increases in the packaging paper sector since July, indicating a significant acceleration in the frequency of industry price adjustments [1] Group 2 - The Guangdong Provincial Paper Industry Association has issued a proposal to promote high-quality development in the paper industry, advocating for a "de-involution" approach [1] - According to Zheshang Securities, the paper industry, characterized by an imbalance in supply and demand and operating at a profit bottom, is expected to benefit from the "de-involution" initiative [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國陽光紙業控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02002 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.1 | HKD | | 200,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.1 | HKD | | 200,000,000 | 本月底法定/註冊 ...