Zhongguancun Science-Tech Leasing (HKG:1601) agreed to purchase certain machinery and production equipment used in the dairy processing business from Gansu Chuanqi Ganwei Dairy for 29.3 million yuan.
The company will then lease the assets back to Gansu Chuanqi Ganwei Dairy, the lessee for a term of 24 months, a Wednesday Hong Kong bourse filing said.
The assets will be leased back for a total finance lease payment of 31.6 million which includes the purchase price as the finance lease principal and a finance lease interest income of 2.3 million yuan.
The company will fund the purchase through its general working capital. The lessee has the option to repurchase the equipment after the lease expires at a nominal value of 100 yuan.
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