Xinte Energy Co., Ltd. announced a finance-lease agreement with Everbright Financial Leasing on 26 May 2026, unlocking RMB500.00 million through a sale-leaseback of selected power-plant equipment.
The transaction structure involves Xinte Energy transferring ownership of boilers, steam turbines and generators—carrying a net book value of approximately RMB586.00 million—to Everbright Financial Leasing for RMB500.00 million. Immediately after the sale, the assets will be leased back to Xinte Energy for five years.
Key lease terms include:
• Lease payments: aggregate rent of about RMB540.00 million, comprising the RMB500.00 million principal and roughly RMB40.00 million in interest. Rent is payable quarterly, with overdue amounts incurring daily penalty interest of 0.05%. • Interest rate: established at a discount to the five-year-and-above Loan Prime Rate and subject to periodic adjustment. • Buy-back option: upon lease expiry and fulfillment of all obligations, Xinte Energy may repurchase the assets for RMB100.
Accounting treatment under China Accounting Standards classifies the arrangement as financing; therefore, no disposal gain or loss will be recognized. Cash proceeds will increase total assets, while a corresponding lease liability will raise total liabilities. Lease-related expenses will flow through the income statement over the lease term. Management plans to apply the net proceeds to repay existing borrowings.
The transaction meets the Hong Kong Listing Rules’ threshold for a discloseable transaction, with the highest applicable percentage ratio exceeding 5% but below 25%, triggering announcement requirements under Chapter 14.
Comments