2026 NEW YEAR MESSAGE FROM SHANYING INTERNATIONAL

ALL Shanying colleagues and friends:

The passage of time has carved another profound growth ring. As we look back at the juncture of inheriting and advancing our five-year strategy, those interlaced marks are not only traces of years but also imprints of our utmost efforts. We call this "the passage of time" – the radiance of circling stars and the frost of wind and snow have jointly woven the ups and downs yet steadfastly advancing five-year journey we have personally experienced.

Looking back on the past five years, challenges and breakthroughs have coexisted. Amid the difficult period when the COVID-19 pandemic impacted the global supply chain, we rose to the occasion with a “sunward-striving” enthusiasm, mapping out the blueprint for our five-year strategy, and established a 10 billion-scale green recycling benchmark facility. Faced with energy fluctuations triggered by the Russia-Ukraine conflict, coupled with the dual pressures of the industry's "ban on waste imports" and "zero tariffs on imported paper," we navigated the cycle with unwavering strategic determination, continuously improving the layout of papermaking capacity. New projects were successively launched in Zhejiang, Guangdong, Jilin, extending our business across the nation and overseas. With the perseverance of "aspiring for everyone to be a light chaser," we promoted digital transformation, and with the tenacity of "the road ahead is long yet bright," we deepened organizational reforms and consolidated operational foundations. In 2024 and 2025, amid external uncertainties such as China-U.S. trade frictions, we facilitated the conversion of "Shanying Convertible Bonds" and "Ying 19 Convertible Bonds,” optimizing our asset-liability structure and solidifying the financial foundation for the company’s long-term development. The "trade-offs and gains" during this journey have made us more clearly aware that only by focusing on core businesses and pursuing lean operations can we stand firm in times of change; only by strengthening the foundation and daring to make breakthroughs can we gain the initiative in competition.

2026 is a crucial year for Shanying to embark on a new chapter. We will adopt more pragmatic measures to solve development challenges and establish the low-cost strategy as the core guiding principle for our next five years. First, we will build a self-sufficient, integrated pulp-paper supply chain, strengthening pulp as a foundational resource essential to modern life and industrial operations. Second, we will persistently enhance lean operations, driving systematic cost reduction across the entire chain-from raw material procurement to production expenses-effectively transforming management efficiency into developmental momentum. Furthermore, guided by the belief of "working together in unity," we will unite organizational strengths and foster a collaborative spirit of “harmonious resonance,” elevating internal synergy and enhancing value in customer partnerships. We will inherit the Shanying spirit of "carrying our own light even when walking alone,” strive together in cost control and market competition, and let the beacon of mutual assistance illuminate our steady path forward.

The past year has unfolded a magnificent tapestry; the new year calls for scaling even greater heights. Time ultimately rewards every focused, resilient, and passionate traveler. In 2026, let us carry forward the wisdom and courage accumulated over the past five years, along with mutual trust and expectations, to embrace challenges with firm faith and march forward to a new journey with high spirits.

I extend my sincere wishes to all colleagues, partners, and friends. May the new year bring vast landscapes to your sight and warm, smooth journeys to your path.

Mingwu Wu

January 1, 2026