Baiying Holdings Group Limited announced that its indirect subsidiary, Xiamen Baiying Leasing Co., Ltd., executed a sale-leaseback Finance Lease Agreement with Fujian Xingcheng Industrial Development and Investment Group Co., Ltd. on 28 May 2026 (after market close).
The leasing arm will acquire three full-servo baby-diaper production lines, four diesel generators and five refrigeration units for RMB21.00 million (approximately HK$24.12 million). Ownership transfers to the lessor at signing, followed by an immediate leaseback to Fujian Xingcheng for 36 months starting 29 May 2026.
Fujian Xingcheng will repay the principal plus interest through 12 quarterly instalments of RMB1.94 million each, totalling RMB23.26 million (approximately HK$26.72 million). The agreement carries an effective annual interest rate of 6.44% and requires a security deposit of RMB1.05 million. Upon completion of all obligations, the lessee can repurchase the assets for RMB100, or undertake an early buyback subject to standard penalty and notice provisions.
Baiying Holdings estimates aggregate income of about RMB2.26 million over the three-year term. The consideration will be funded entirely by internal resources and was determined through arm’s-length negotiation, referencing the original purchase prices validated by the Hanjiang District Finance Bureau of Putian City.
Under GEM Listing Rules, the new agreement must be aggregated with a previous lease signed with the same counterparty on 10 September 2025. Combined applicable percentage ratios exceed 5% but remain below 25%, classifying the transaction as discloseable and triggering announcement and notification obligations.
The company reported that its credit assessment of Fujian Xingcheng—covering financial statements, cash flows and shareholder background—indicates relatively low credit risk. Both parties are independent, with Fujian Xingcheng ultimately controlled by state-owned entities in Putian City, Fujian Province.
Trading in Baiying Holdings’ shares remains suspended on the Hong Kong Stock Exchange since 9 June 2025, pending re-compliance with Rule 17.26 of the GEM Listing Rules and fulfilment of resumption guidance. Further updates will be provided in accordance with listing requirements.
Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.