The board of directors of China Sunshine Paper Holdings Company Limited informed the shareholders of the Company and potential investors that, based on the preliminary assessment of the management accounts of the Group for the year ended 31 December 2023 and other information currently available, it is expected that the Group will record an increase of approximately 90% to 100% in its consolidated net profit attributable to the shareholders for the year ended 31 December 2023 as compared to that for the year ended 31 December 2022. Based on the information currently available, the Board considers that the significant increase in the consolidated net profit for the year ended 31 December 2023 were primarily attributable to i) the decreased purchase costs of the Group which resulted from the decreased prices of bulk materials such as waste paper, wood pulp and coal, and led to the increase of its gross profit and gross profit margin; ii) reversal for expected credit loss on financial assets; iii) a joint venture of the Group recorded profit as compared to loss for the year ended 31 December 2022; and iv) the reduction in share of loss of an associate of the Group.