Baiying Holdings (8525) has approved a sale-leaseback transaction with Jiuxian following a Finance Lease Agreement signed on 21 October 2025. Under this agreement, the group’s PRC subsidiary will acquire specific power- and water-supply equipment from Jiuxian for RMB30 million (approximately HK$32.84 million) and lease them back to Jiuxian over a 36-month period. The aggregate lease payments amount to RMB33.10 million (approximately HK$36.22 million), reflecting an annual effective interest rate of 6.17%.

According to the announcement, instalments will be settled quarterly, and a security deposit of RMB1.50 million is required. Upon making the final instalment, Jiuxian will have the option to repurchase the equipment for RMB100, or repurchase earlier under certain conditions. Baiying Holdings (8525) highlights that this arrangement is expected to generate close to RMB3.10 million (approximately HK$3.39 million) in income over the lease’s duration.

In assessing the finance lease, Baiying Holdings (8525) examined Jiuxian’s financial standing and credit track record. The company indicates that Jiuxian has a solid reputation, and the risk level linked to this arrangement is deemed manageable. Since the percentage ratios for this sale-leaseback deal exceed 5% but remain below 25%, the transaction is deemed discloseable under Chapter 19 of the GEM Listing Rules.

Baiying Holdings (8525) is mainly engaged in equipment-based financing solutions and packaging and paper products trading. Jiuxian, fully owned by the Finance Bureau of Xianyou County, operates in investment, park management, and property management. Both parties are Independent Third Parties with no ties to any connected person of Baiying Holdings (8525).

Trading in Baiying Holdings (8525) shares has been suspended since 9 June 2025 and will remain halted until the Stock Exchange grants approval to resume. Further updates will be provided as progress is made on meeting the relevant resumption requirements.