Beijing Energy International Announces RMB325 Million Finance Lease for Floating Photovoltaic Power Project

Key Transaction Details

• Date of Agreement: 11 March 2026 (after trading hours)
• Parties Involved: Anhui Zhaolian Clean Energy Co., Ltd. (as lessee, a wholly-owned subsidiary of Beijing Energy International Holding Co., Ltd.) and ABC Financial Leasing Co., Ltd. (as lessor, a wholly-owned subsidiary of Agricultural Bank of China)
• Transaction Structure: ABC Financial Leasing will purchase specific leased assets from Anhui Zhaolian for a total consideration of RMB325 million. The assets will then be leased back to Anhui Zhaolian under a finance lease arrangement.
• Lease Term: 120 months (10 years), payable quarterly in 40 instalments.
• Total Lease Payment: Approximately RMB373 million, combining the purchase cost and estimated interest of RMB48 million (floating rate, adjusted with reference to the PRC loan prime rate for loans above 5 years, minus 65 basis points).
• Security: The lease is secured by a pledge of Anhui Zhaolian’s rights to receive electricity fees from the Floating Photovoltaic Power Generation Project, per the Electricity Fee Rights Pledge Agreement.
• Ownership Transfer: Upon successful completion of all obligations, Anhui Zhaolian can acquire legal title of the assets at a nominal consideration of RMB1.

Significance and Shareholder Considerations

• Discloseable Transaction: The transaction’s size means it is classified as a “discloseable transaction” under Chapter 14 of the Hong Kong Listing Rules. This triggers mandatory notification and announcement requirements to shareholders and the market, which could influence share price due to increased transparency and the size of the transaction.
• Strategic Financial Move: The finance lease allows the Group to unlock additional financial resources for the development of the Floating Photovoltaic Power Generation Project and supplement working capital, enhancing the company’s ability to pursue new projects and potentially drive future growth.
• Efficient Use of Assets: By leveraging the existing asset base, the Group can efficiently utilize internal resources without diluting shareholder value or immediately increasing debt ratios.
• Secured Borrowing: The transaction will be accounted for as a secured borrowing in accordance with Hong Kong Financial Reporting Standards, meaning no immediate gain or loss will be recognized in the accounts. This also means no direct impact on net profit in the short term, but an increase in liabilities.
• Asset Performance:
  • Book Value of Leased Assets (as of 28 February 2026): RMB534 million
  • Profit Before Tax (Year Ended 31 December 2024): RMB16 million (audited)
  • Profit Before Tax (Year Ended 31 December 2025): RMB28 million (unaudited)
  • Profit After Tax (2024): RMB12 million
  • Profit After Tax (2025): RMB18 million
• Counterparty Risk: ABC Financial Leasing and its ultimate beneficial owner are independent third parties, reducing concerns over related-party transactions and potential conflicts of interest.
• Project Information: The assets relate to a 100MW floating photovoltaic power generation project in Fengtai County, Huainan City, Anhui Province, PRC, which is part of Beijing Energy International’s clean energy strategy.

Board Statement and Outlook

The Board, including independent non-executive directors, believes the transaction is conducted on normal commercial terms, with fair and reasonable conditions, and is in the interests of the Company and its shareholders as a whole.

The transaction strengthens the Group’s resource base and financial flexibility, enabling further investment in clean energy and supporting business expansion. Investors should monitor future developments and potential impacts on the Group’s financial structure and project pipeline.

Directors and Company Background

• Company: Beijing Energy International Holding Co., Ltd. (Incorporated in Bermuda, listed in Hong Kong, stock code: 686)
• Main Businesses: Development, investment, operation, and management of power plants and clean energy projects.
• Directors: Executive Director: Mr. Zhang Ping (CEO); Non-executive Directors: Mr. Li Yuhai (Chairman), Mr. Lu Zhenwei, Mr. Liu Guoxi, Mr. Li Hao, Mr. Huang Jiao, Mr. Wang Cheng, Ms. Xie Yi; Independent Non-executive Directors: Ms. Jin Xinbin, Mr. Zhu Jianbiao, Mr. Zeng Ming, Mr. Liu Jingwei.

Potential Price Sensitivity

This finance lease transaction is a sizeable move that strengthens the Group’s financial position and could positively influence investor sentiment regarding the Company’s growth prospects in clean energy. The arrangement also increases financial leverage, which may have implications for the Company’s risk profile and future financing capacity. Investors should carefully consider these factors when evaluating the Company’s shares.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their own professional advisers before making investment decisions. The author and publisher are not responsible for any investment actions taken based on this news report.

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