SDHS NEW ENERGY (01250) announced that on September 9, 2025, Beitou Clean Energy (Haixing) (as lessee) entered into a financing lease agreement with Bank of China Financial Leasing Co., Ltd. (as lessor). Under the agreement, Bank of China Financial Leasing will purchase leased assets for a total consideration of RMB 385 million, which will subsequently be leased to Beitou Clean Energy (Haixing) for a lease term of 13 years.

The ownership of the leased assets under the financing lease agreement will belong to Bank of China Financial Leasing during the lease period. At the end of the lease term, after Beitou Clean Energy (Haixing) pays (i) all amounts payable under the financing lease agreement and (ii) a nominal consideration of RMB 100 for the leased assets, the ownership of the leased assets will revert to Beitou Clean Energy (Haixing).

The leased assets comprise the photovoltaic system and supporting facilities of a 145MW centralized solar power station owned by Beitou Clean Energy (Haixing) and located in Haixing County, Cangzhou City, Hebei Province, China.

The financing lease agreement and the transactions contemplated thereunder were negotiated between the contracting parties on normal commercial terms and on an arm's length basis. The arrangement provides the Group with long-term financial resources to repay loans with higher interest rates and offers additional working capital. The financing lease arrangement under the agreement is expected to reduce the Group's overall financing costs and optimize the Group's asset structure, thereby enhancing the Group's overall operational efficiency.

Accordingly, the directors believe that the terms of the financing lease agreement and the transactions contemplated thereunder are fair and reasonable and in the overall interests of the Company and its shareholders.