DENOX ENV (01452) announced that on May 29, 2025, the lessee (Beijing Denox Environmental Technology Co., Ltd., an indirect wholly-owned subsidiary of the company) entered into a financing lease agreement with the lessor (Yongying Financial Leasing Co., Ltd., an indirect wholly-owned subsidiary of Ningbo Bank).

Under the agreement, the lessee has agreed to sell lease assets to the lessor for a consideration of RMB 10 million, while the lessor has agreed to lease back the assets to the lessee for a term of 36 months, with total lease payments amounting to RMB 10.8868 million.

The lease assets under this financing lease agreement include one vacuum extruder, one pre-extruder, one rotary cutting machine, one robotic arm, one set of primary/secondary drying and roasting belt kiln equipment, one honeycomb catalyst electric heating belt calcination furnace, one 53-meter double-layer electric heating belt kiln, multiple electric heating belt hot air drying furnaces, one single-station quantitative coating machine and automated production line system, multiple precision steel mesh production lines, and one pre-filter.

The directors believe that the group can obtain immediate liquidity through the sale-leaseback arrangement under the financing lease agreement to meet its business operations and working capital requirements without having to sell its core production equipment assets.