Forest Packaging Group Co., Ltd. Progress Announcement on External Guarantee

Stock Code: 605500 Stock Short Name: Forest Packaging Announcement No.: 2026-008

Forest Packaging Group Co., Ltd.

Announcement on the Progress of External Guarantees

The board of directors and all directors of this Company warrant that there are no false records, misleading statements, or material omissions in the contents of this announcement, and assume legal responsibility for the truthfulness, accuracy, and completeness of the contents.

Key Points in This Matter:

● Name of the Guaranteed Party:

1. Zhejiang Forest Paper Industry Co., Ltd. (hereinafter referred to as “Forest Paper Industry”). It is a wholly owned subsidiary of Forest Packaging Group Co., Ltd. (hereinafter referred to as the “Company”).

2. Zhejiang Forest United Paper Industry Co., Ltd. (hereinafter referred to as “United Paper Industry”). It is the Company’s holding subsidiary.

● The Amount of This Guarantee, and the Amount and Balance of Guarantees Actually Provided:

1. From March 1, 2026 to March 31, 2026, the Company and its subsidiaries provided a guarantee amount of RMB 0.7998 million to Forest Paper Industry. As of March 31, 2026, the Company and its subsidiaries provided a guarantee balance of RMB 7.0378 million to Forest Paper Industry.

2. From March 1, 2026 to March 31, 2026, the Company and its subsidiaries provided a guarantee amount of RMB 14.4811 million to United Paper Industry. As of March 31, 2026, the Company and its subsidiaries provided a guarantee balance of RMB 795.8673 million to United Paper Industry.

● Whether This Guarantee Has Any Counter-Guarantee: United Paper Industry’s minority shareholders’ actual controller provides a counter-guarantee commitment to the Company for a guarantee to United Paper Industry not exceeding RMB 500M, in accordance with the proportion of the equity interest in United Paper Industry held by the enterprise under its control.

● Cumulative Number of External Guarantees That Have Expired: None

● Special Risk Warning: The asset-liability ratios of Forest Paper Industry and United Paper Industry exceed 70%.

I. Overview of the Guarantee Situation

(1) Basic Details of the Guarantees Provided.

In order to meet the needs of its business operations and development, from March 1, 2026 to March 31, 2026, the Company and its subsidiaries conducted external guarantee matters as follows:

1. The Company and its subsidiaries provide guarantees for Forest Paper Industry.

Forest Paper Industry signed a financing contract with the Taizhou Wenling Sub-branch of Zhaoshang Bank Co., Ltd. (hereinafter referred to as “Zhaoshang Bank”), under which a letter of credit in the amount of RMB 0.7998 million was opened. Pursuant to the “Asset Pool Pledge Guarantee Contract” signed between the Company and its subsidiaries and Zhaoshang Bank, the Company and its subsidiaries provide a guarantee amount of RMB 0.7998 million for Forest Paper Industry.

As of March 31, 2026, the Company and its subsidiaries provide a guarantee balance of RMB 7.0378 million for Forest Paper Industry.

2. The Company and its subsidiaries provide guarantees for United Paper Industry.

(1) United Paper Industry signed a “Fixed Asset Loan Contract” with the Taizhou Wenling Sub-branch of Bank of China Co., Ltd. (hereinafter referred to as “Bank of China”) to obtain a fixed-asset investment loan in the amount of RMB 1.4444 million. Pursuant to the “Guarantee Contract” numbered: 2025 Wen Da (Qi Bao) Zi No. 008 signed between the Company and Bank of China, the Company provides a guarantee amount of RMB 1.4444 million for United Paper Industry.

(2) United Paper Industry signed a financing contract with Zhaoshang Bank to open a domestic letter of credit in the amount of RMB 13.0367 million. Pursuant to the “Asset Pool Pledge Guarantee Contract,” the Company and its subsidiaries provide a guarantee amount of RMB 13.0367 million for United Paper Industry.

As of March 31, 2026, the Company and its subsidiaries provide a guarantee balance of RMB 795.8673 million for United Paper Industry.

The guarantee matters arising from March 1, 2026 to March 31, 2026 are as follows:

Unit: RMB ten thousand

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(II) Decision-making Procedures for the Execution of the Guarantee Matters

On April 26, 2025, the Company convened the 14th meeting of the Third Session of the Board of Directors, which considered and approved the “Proposal on the Estimated External Guarantee Credit Limits for 2025.” For 2025, the estimated guarantee credit limit for Forest Paper Industry and other 5 wholly owned subsidiaries shall be no more than RMB 900.00 million, including an estimated guarantee credit limit for Forest Paper Industry of no more than RMB 150.00 million. The estimated guarantee credit limit for the holding subsidiary United Paper Industry shall be no more than RMB 1,250.00 million, and the total estimated guarantee amount shall be no more than RMB 2,150.00 million. The validity period of this resolution is 12 months from the date on which it is approved at the general meeting of shareholders. Within the above credit limits and validity period, for the specific guarantee matters that arise, the Company authorizes the chairman of the board of directors to approve specific guarantee matters (including but not limited to the guaranteed party, guarantee amount, guarantee term, etc.) and authorizes the chairman of the board of directors or the corresponding legal representative of the Company to sign all legal documents related to the guarantees. The board of directors and the general meeting of shareholders will no longer consider each guarantee matter individually one by one.

On May 19, 2025, the Company held the 2024 annual general meeting of shareholders, which considered and approved the “Proposal on the Estimated External Guarantee Credit Limits for 2025.”

II. Basic Information on the Guaranteed Parties

(I) Zhejiang Forest Paper Industry Co., Ltd.

Date of establishment: June 12, 2012

Unified Social Credit Code: 91331081598532473H

Registered address: No. 460, North Daxi Road, Daxi Town, Wenling City, Taizhou City, Zhejiang Province

Legal representative: Lin Qifa

Registered capital: RMB 10.00 million

Business scope: General projects: sale of pulp; sale of paper products; sale of cork products; sale of plastic products; sale of daily-use wooden products; trade brokerage; sale of coal and products; technology import and export; import and export of goods (except for projects that must be approved in accordance with laws and regulations; business activities shall be carried out independently in accordance with the business license). Licensed projects: food sales (business activities may be carried out only after approval by relevant departments in accordance with laws; the specific business projects shall be subject to the approval results).

Major shareholders: The Company holds 100% equity.

The major financial indicators of Forest Paper Industry for the most recent year and the latest period are as follows:

Unit: RMB ten thousand Currency: RMB

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(II) Zhejiang Forest United Paper Industry Co., Ltd.

Date of establishment: March 26, 2020

Unified Social Credit Code: 91331081MA2DYWY524

Domicile: No. 2 Changxintang Road, Binhai Town, Wenling City, Taizhou City, Zhejiang Province (East Industrial Concentration Area, north side of Street 30)

Legal representative: Lin Qijun

Registered capital: RMB 600.00 million

Business scope: General projects: paper manufacturing; primary processing of non-edible agricultural products; purchase of primary agricultural products; import and export of goods; technology import and export; recovery of renewable resources (excluding productive scrap ferrous metals); sale of renewable resources (excluding projects that require approval under laws and regulations; business activities shall be carried out independently in accordance with the business license).

Major shareholders: The Company holds 66.5% of the shares of United Paper Industry, and is the actual controller of United Paper Industry; Wenling Zhida Trading Co., Ltd., Wenling Tengxing Trading Co., Ltd., Wenling Liangbao Trading Co., Ltd., Wenling Fuxing Automobile & Motorcycle Manufacturing Co., Ltd., and Wenling Zhuke Trading Co., Ltd., etc., hold 5%, 8%, 14.5%, 2%, and 4% of the shares of United Paper Industry, respectively.

The major financial indicators of United Paper Industry for the most recent year and the latest period are as follows:

Unit: RMB ten thousand Currency: RMB

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III. Main Contents of the Guarantee Agreements

(I) Main contents of the guarantee agreement signed by the Company and its subsidiaries with Zhaoshang Bank to provide guarantees for Forest Paper Industry:

1. Guaranteed party: Zhejiang Forest Paper Industry Co., Ltd.

2. Guarantors: Forest Packaging Group Co., Ltd., Taizhou Forest Paper-making Co., Ltd.

3. Creditor: the Taizhou Wenling Sub-branch of Zhaoshang Bank Co., Ltd.

4. Guarantee limit and scope:

(1) Guarantee limit under this maximum amount guarantee: RMB 60.00 million

(2) Scope guaranteed under this contract: Under all main contracts, the scope of the guarantee includes the principal amount of the debts under the bill-pledged asset pool financing, interest, overdue interest, compound interest, liquidated damages, damages compensation, and all fees for creditors to realize their claims, including court (arbitration) fees, lawyer fees, safekeeping fees, fees for disposal of the pledged property, transfer fees, etc.

5. Guarantee method: The financing method corresponding to the pledged guarantee for the bill asset pool, including but not limited to bank acceptance bills, working capital loans, etc.

6. Realization of the guarantee: If any obligation under this contract has reached its performance deadline and has not been fully settled, the creditor has the right to use, with priority, the maturing collection proceeds of the pledged bills held by the guarantor and the guarantee deposit in the bill guarantee deposit pool to settle the debts under the bill asset pool financing. The above “maturity of the term” includes the circumstances where the pledgee declares that the debts under the main contract shall become due earlier in accordance with the provisions of the main contract or the requirements of national laws and regulations.

(II) Main contents of the guarantee agreement signed by the Company and its subsidiaries with Zhaoshang Bank to provide guarantees for United Paper Industry:

1. Guaranteed party: Zhejiang Forest United Paper Industry Co., Ltd.

2. Guarantors: Forest Packaging Group Co., Ltd., Taizhou Forest Paper-making Co., Ltd.

3. Creditor: the Taizhou Wenling Sub-branch of Zhaoshang Bank Co., Ltd.

4. Guarantee limit and scope:

(1) Guarantee limit under this maximum amount guarantee: RMB 100.00 million

(2) Scope guaranteed under this contract: Under all main contracts, the scope of the guarantee includes the principal amount of the debts under the bill-pledged asset pool financing, interest, overdue interest, compound interest, liquidated damages, damages compensation, and all fees for creditors to realize their claims, including court (arbitration) fees, lawyer fees, safekeeping fees, fees for disposal of the pledged property, transfer fees, etc.

5. Guarantee method: The financing method corresponding to the pledged guarantee for the bill asset pool, including but not limited to bank acceptance bills, working capital loans, etc.

6. Realization of the guarantee: If any obligation under this contract has reached its performance deadline and has not been fully settled, the creditor has the right to use, with priority, the maturing collection proceeds of the pledged bills held by the guarantor and the guarantee deposit in the bill guarantee deposit pool to settle the debts under the bill asset pool financing. The above “maturity of the term” includes the circumstances where the pledgee declares that the debts under the main contract shall become due earlier in accordance with the provisions of the main contract or the requirements of national laws and regulations.

(III) The “Guarantee Contract” signed by the Company with Bank of China to provide guarantees for United Paper Industry, with its main contract terms.

1. Borrower: Zhejiang Forest United Paper Industry Co., Ltd.

2. Lender: the Taizhou Wenling Sub-branch of Bank of China Co., Ltd.

3. Guarantor: Forest Packaging Group Co., Ltd.

4. Main contract of the Guarantee Contract: the “Fixed Asset Loan Contract” numbered 2025 Wen Da (Jie) Ren Zi No. 028 signed between the lender and the borrower, and any amendments or supplements thereto.

5. Principal claims: the principal claims under the main contract that constitute the principal claims of this contract, including principal, interest (including interest, compound interest, penalty interest), liquidated damages, compensation, costs for realizing the creditor’s claims (including but not limited to litigation expenses, lawyer expenses, notarization expenses, execution expenses, etc.), losses caused to the creditor due to the debtor’s breach of contract, and all other payable expenses.

6. Guarantee method: joint and several liability guarantee.

7. Trigger of guarantee obligations: If the debtor fails to settle, as agreed, with the creditor on any normal repayment date or an early repayment date, the creditor shall have the right to require the guarantor to perform the guarantee obligations.

The normal repayment dates referred to in the preceding paragraph are the principal repayment dates, interest payment dates, or the dates on which the debtor, pursuant to such contracts, is required to pay any amounts to the creditor, as stipulated in the main contract. The early repayment dates referred to in the preceding paragraph are the early repayment dates proposed by the debtor with the creditor’s consent, and the dates on which the creditor requires the debtor to recover early the principal and interest of the creditor’s claims and/or any other amounts pursuant to contract provisions, etc.

If, in addition to this contract, there exist other security over property or guarantees for the principal debt, it does not affect any rights of the creditor under this contract or the exercise thereof. The creditor has the right to determine the order of exercising the various security rights. The guarantor shall assume its guarantee responsibility in accordance with the provisions of this contract and may not raise defenses against the creditor by alleging the existence of other guarantees or the order of exercising the guarantees, etc.

8. Guarantee period: The guarantee period under this contract is three years from the date of expiry of the settlement period of the principal claims. If the principal claims are repaid in installments, the guarantee period is three years from the date three years after the expiry of the performance period of the last installment, starting from the effective date of this contract.

IV. Necessity and Reasonableness of the Guarantees

The Company provides guarantees for Forest Paper Industry and United Paper Industry in order to meet their financing guarantee needs for their operations and development. This complies with the Company’s actual operating conditions, its overall development strategy, and requirements for sustainable development. The asset-liability ratios of Forest Paper Industry and United Paper Industry exceed 70%. However, as they are subsidiaries of the Company, currently the Company’s operations, management, and operations are stable and normal. The available funds can meet the needs of daily operations, and the Company has the capacity to repay its debts, with risks under control.

V. Cumulative Amount of External Guarantees and Amount of Expired Guarantees

As of March 31, 2026, aside from guarantees for its holding subsidiaries, the Company has no other external guarantees. The guarantee balance provided by the Company for holding subsidiaries is RMB 802.9051 million, accounting for 31.04% of the Company’s latest audited net assets. There are no expired guarantees. The Company does not provide guarantees to controlling shareholders and actual controllers or their related parties.

Notice is hereby given.

Board of Directors of Forest Packaging Group Co., Ltd.

April 2, 2026

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