China Development Bank Financial Leasing Co., Ltd. (1606) (“CDB Leasing”) announced a finance lease arrangement involving Harbin Shuangcheng District Huare Green Power Co., Ltd. (as Lessee) and Hunan Sany Smart New Energy Design Co., Ltd. (as Vendor). Under the agreement, CDB Leasing will purchase wind power station equipment located in Heilongjiang Province from the Vendor for RMB1.5 billion, with reference to an appraised value of approximately RMB1.57 billion.

CDB Leasing will then lease the equipment back to the Lessee for 216 months. The total lease interest for the duration is approximately RMB620 million. The Lessee will make quarterly payments of lease principal and interest, and may acquire the equipment for RMB100 in nominal value upon lease expiry. Heilongjiang Huare Power Company Limited provides a joint and several guarantee for the Lessee’s obligations.

This institution classifies the transaction as a discloseable transaction under Chapter 14 of the Listing Rules, as the highest applicable percentage ratio exceeds 5% but remains below 25%. Consequently, the arrangement is subject to relevant reporting and announcement requirements but is exempt from circular and shareholders’ approval. According to the announcement, this agreement aligns with CDB Leasing’s business strategy and is expected to contribute to its finance lease segment revenue.