Baiying Holdings Group Limited (Baiying Holdings) disclosed that its indirect wholly-owned subsidiary, Xiamen Baiying Leasing Co., Ltd., signed a finance lease agreement on 2 June 2026 with Quanzhou Taishang Investment Zone Development and Construction Co., Ltd., a state-owned enterprise.
Transaction Structure and Terms • Baiying Leasing will purchase a portfolio of municipal equipment—ranging from portable water-quality detectors to dust-suppression trucks—for RMB20.00 million (approximately HK$23.00 million) and immediately lease the assets back to Quanzhou Taishang. • Lease tenure: 36 months (3 June 2026–3 June 2029). • Aggregate lease payments: RMB21.92 million (approximately HK$25.21 million), to be settled in 12 quarterly instalments of RMB1.83 million each. • Effective annual interest rate: 5.70%, translating into anticipated interest income of RMB1.92 million (approximately HK$2.21 million) over the lease term. • Security deposit: RMB1.00 million, refundable or creditable against final obligations subject to compliance. • Early buyback option: Lessee may repurchase the assets after curing any default and paying outstanding sums, a 1% compensation on remaining principal, and RMB100 nominal consideration.
Funding and Rationale The RMB20.00 million consideration will be satisfied by the Group’s internal resources. Management states the agreement falls within Baiying’s ordinary course of business, offering stable interest income at market-aligned terms.
GEM Listing Rules Implications When aggregated with a prior finance lease signed with the same lessee on 20 March 2026, at least one applicable percentage ratio exceeds 5% but remains below 25%. The transaction is therefore classified as a discloseable transaction under Chapter 19 of the GEM Listing Rules, requiring notification and announcement but not shareholder approval.
Credit Assessment Baiying completed a credit due-diligence review of Quanzhou Taishang, analysing its financial statements and ownership background. The company cites the lessee’s state ownership, positive track record and existing relationship as factors supporting a “relatively low” credit risk profile.
Continued Trading Suspension Trading in Baiying Holdings’ shares has been suspended since 9 June 2025 pending re-compliance with Rule 17.26 of the GEM Listing Rules and fulfillment of resumption guidance. The suspension remains in force, and further updates will be issued as necessary.
Shareholders and potential investors are advised to exercise caution when dealing in the shares of Baiying Holdings.