2025 NEW YEAR MESSAGE FROM SHANYING INTERNATIONAL

All Shanying colleagues and friends:

Time, like a giant brush, etches every stroke with theresilience of Shanying. 2024 has passed in a series of ups and downs.

In 2024, Shanying’s achievements highlight thesacrifices and gains. In order to optimize asset allocation and focus on corebusiness development, we launched the "Sailing Project" centered ondisposing of non-core business assets, and pushed forward the "Three FivesPlan" aimed at revitalizing cash flow, and steadily adjusting our overseasstrategy. The revitalization of Nordic paper and the timely conversion andredemption of Shanying’s convertible bonds demonstrated our decisiveness andresilience in the face of adversity.

In 2024, Shanying’s strength reflected the wisdom andcourage. Shanying continued to focus on technological innovation, leveragingdigitalization to accelerate the adoption of smart warehousing, automatedlogistics, data sensing and detection, IoT, and information integrationtechnologies. As a result, we were awarded the National-level SmartManufacturing Demonstration Factory for the year 2023. We achieved leanoperations across the entire supply, operation, and sales chains, reducedoperating funds by 1 billion yuan in the third quarter, and successfullyattracted global leading clients from industries such as 3C, food, andautomotive. Shanying was also named one of the "Fortune China 500"for the ninth consecutive year.

2024 also marks the dear friends and companions whostood with us through difficulties. On June 21, Shanying International faced asudden dual blow from its stock and bond markets. In order to support andencourage the company to overcome difficulties, the government of Ma'anshanquickly signed a strategic cooperation agreement with Shanying International.Governments at all levels where Shanying is located also provided significantsupport and assistance. A series of protections provided Shanying withconfidence and strength. Meanwhile, after the company launched its sharebuyback plan, financial institutions provided the company with a specialrepurchase loan of 200 million yuan, which made us deeply feel the confidenceand determination of financial services to support the real economy. During theimplementation of the "Three Fives Plan" to revitalize cash flow, allsuppliers, customers, friends from various sectors, and internal employees showedfull understanding and support, which made us feel warm and steadfast.

Looking back at 2024, we’ve climbed over one mountainafter another, turning obstacles into opportunities. I would like to express mygratitude to all the employees, partners, investors, and friends from all walksof life who have worked with Shanying. It is your trust and support in criticalmoments that have given Shanying the confidence and courage to face challenges.With your support, we believe that only by moving forward with perseverance canwe overcome all obstacles; only by assuming responsibility can we repay allemployees, partners, investors, and friends; and only through cooperation and mutualbenefit can Shanying soar higher and further.

Entering 2025, we foresee a turbulent internationalenvironment with risks and challenges in domestic development. However, webelieve that as long as we withstand the storms, the future will be bright.

In 2025, Shanying will embrace new challenges with asteady and progressive attitude. We’ll break through with three mainstrategies:

First Strategy: Focus on continuous debt reduction. Wewill prioritize debt reduction and light-asset operations, introducing the U60cash increment plan with a goal of reducing the comprehensive asset-liabilityratio to below 60%, improving project investment returns, and deliveringexcellent performance to reward shareholders and employees.

Second Strategy: Focus on improving organizationaleffectiveness and operational efficiency. Three major divisions-papermaking,packaging and recycling-will be established to streamline administrative anddelegate authority, allowing business operations to respond more quickly tomarket changes. We will continue to develop a customer-centric service systemand promote integrated solutions. We will also persist in high-qualitydevelopment, push forward digital initiatives, continuously enhance leanoperational capabilities, and optimize the cost structure to make costadvantages the company’s "moat".

Third Strategy: Take responsibility for fulfillingsocial duties. We aim to create a healthy development ecosystem for green andlow-carbon industries, participate in the construction of carbon footprintmanagement systems, pilot carbon reduction certification and labeling, adhereto the principles of “co-creation, sharing, and win-win”, collaborate topromote a low-carbon supply chain in the recycling field, setting industrybenchmarks.

As spring approaches, I extend my best wishes for thenew year. May we always have harmony in our long songs and light in oursolitary journeys, may all we encounter be warm, and all we see be what wecherish. Thank you once again for your support and love for Shanying International!

Mingwu Wu
January 1, 2025