Hing Yip Holdings Announces Discloseable Transaction: Entry Into Major Finance Lease

Key Points of the Announcement

• Transaction Overview: On 17 March 2026, Hing Yip Holdings Limited (“the Company”), through its subsidiary Greengold Leasing, entered into a finance lease arrangement with Inner Mongolia Jinxing Technology Co., Ltd. (“the Lessee”). The transaction involves Greengold Leasing acquiring ownership of water transmission equipment and facilities (the “Assets”) for RMB60 million (approx. HK\$67.98 million) and leasing them back to the Lessee for five years.
• Transaction Size and Listing Rules: The transaction’s applicable percentage ratios exceed 5% but are below 25%, making it a discloseable transaction under Hong Kong Stock Exchange Listing Rules.
• Asset Details: The assets are water transmission equipment and facilities located in Ordos City, Inner Mongolia, PRC. The original cost of the assets was RMB117.62 million (approx. HK\$133.27 million), and they remain in serviceable condition.
• Lease Terms: The lease is for 5 years, starting once Greengold Leasing has paid the asset transfer consideration. The total lease payments will amount to approximately RMB70.74 million (approx. HK\$80.15 million), comprising the principal (RMB60 million) and interest and fees (RMB10.74 million).
• Security and Guarantees: The Lessee will pay an interest-free guarantee deposit of RMB3 million (approx. HK\$3.4 million). Six individual guarantors, holding a majority of shares in the Lessee, have provided joint and several guarantees. The assets themselves, certain receivables, and equity interests of the guarantors in the Lessee are pledged as security for the lease.
• Early Termination & End-of-Lease Buy-Back: The Lessee can terminate the lease early by paying all outstanding amounts and a 20% compensation on outstanding interest. At lease end or early termination (after all dues are paid), the Lessee can repurchase the assets for a nominal RMB100.
• Strategic Rationale: The transaction is aligned with Greengold Leasing’s ordinary business, focusing on finance leasing for environmental protection projects, and is expected to generate stable revenue and cashflow for the group.

Important and Potentially Price-Sensitive Information for Shareholders

• Revenue and Cashflow Impact: This sizeable finance lease is anticipated to enhance the Group’s recurring income and cashflow over the five-year term, supporting Hing Yip’s strategic focus on finance leasing and environmental projects.
• Risk Mitigation: The transaction is well-secured, with assets, receivables, and equity interests pledged, plus joint and several guarantees from key shareholders of the Lessee, reducing credit risk and protecting the Group’s interests.
• Funding: The consideration for the asset purchase will be funded via internal resources and/or external banking facilities, which may affect the Group’s liquidity and gearing ratios.
• Transaction Structure: The arm’s length negotiation and reference to market loan prime rates (3% as of the agreement date) ensure the terms are commercially reasonable and competitive.
• Potential Share Price Impact: The transaction demonstrates the Company’s capacity to secure large-scale, revenue-generating finance leases and prudent risk management. The stable projected revenue and cashflow, coupled with increased exposure to environmental infrastructure, may be viewed positively by investors and could impact the share price.

Details for Investors

• Parties Involved:
  • Greengold Leasing (subsidiary, as lessor)
  • Inner Mongolia Jinxing Technology Co., Ltd. (Lessee, tap water production and supply)
  • Guarantors: Seven individuals, including six major shareholders of the Lessee
• Security Arrangements:
  • Asset pledge: Assets used as security during the lease term
  • Receivables pledge: Lessee’s pipeline leasing receivables pledged
  • Equity pledge: Majority shareholder stakes in Lessee pledged
• Obligations & Costs:
  • Lessee responsible for asset maintenance, taxation, and associated costs during lease
  • Quarterly principal and interest payments
• Group Business Overview:
  • Hing Yip Holdings is principally engaged in wellness elderly care, finance leasing, technology, and civil explosives, with investments in fast-growing sectors such as electric utilities in the PRC.

Conclusion

This transaction is a significant step for Hing Yip Holdings, reinforcing its role in the finance leasing sector, particularly in environmental infrastructure. The deal’s structure, size, security, and projected financial benefits are likely to be of material interest to shareholders and investors. The stable revenue stream and effective risk management could positively influence the Company’s valuation and stock price, subject to market perception and execution risks.

Disclaimer: This article is a summary and interpretation of official company disclosures. It is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisers before making investment decisions.

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