Hing Yip Holdings Announces Discloseable Finance Lease Transaction with Potential Impact on Share Value

Date: 4 March 2026
Company: Hing Yip Holdings Limited (Stock Code: 00132, HKEX Main Board)

Key Highlights of the Announcement

• Hing Yip Holdings (the “Company”), through its subsidiary Greengold Leasing, has entered into a substantial finance lease agreement with two independent lessees.
• The transaction involves the acquisition of certain sewage treatment equipment and facilities from the lessees at RMB70,000,000 (approximately HK\$79,170,000), which will be immediately leased back to the lessees for a period of 6 years.
• The total payments to be received under the finance lease, including principal and interest, amount to approximately RMB83,750,000 (about HK\$94,721,000).
• This transaction qualifies as a “discloseable transaction” under the Hong Kong Listing Rules, as one of the relevant size tests exceeds 5% but is less than 25%.

Detailed Transaction Structure

Parties Involved

• Lessor: Greengold Leasing (subsidiary of Hing Yip Holdings)
• Lessees: Changsha Liantai Water Purification Co., Ltd. and Shaoyang Liantai Jiangbei Water Co., Ltd. (both PRC-incorporated companies engaged in sewage treatment and wholly owned by Guarantor 1)
• Guarantors: Guangdong Liantai Environmental Protection Co., Ltd. (listed on Shanghai Stock Exchange), Shaoyang Liantai Water Purification Co., Ltd., and Mr. Huang Jianxun (a natural person)

Transaction Flow and Financials

• Greengold Leasing will acquire unencumbered ownership of designated sewage treatment assets in Changsha and Shaoyang, Hunan Province, PRC, from the lessees on an “as-is” basis.
• The assets are transferred at RMB70 million, to be paid in cash within 12 months from the lease agreement date.
• The leaseback to the lessees is for 6 years, starting upon full payment of the purchase consideration.
• Quarterly payments of both principal and interest will be made by the lessees, totaling RMB83.75 million over the lease term.
• Interest and fees over the lease term amount to approximately RMB13.75 million (about HK\$15.55 million), with terms negotiated around prevailing market rates (noted as 3% at signing).

Security and Guarantees

• Lessees are required to pay an interest-free guarantee deposit of RMB3.5 million (HK\$3.96 million) to Greengold Leasing.
• Guarantors have executed joint and several guarantees for all amounts payable under the lease.
• Multiple layers of security are provided, including:
  • Pledge of the leased assets.
  • Pledge of receivables and franchise rights under specific sewage treatment agreements.
  • Equity pledges by Guarantor 1 over its shareholding in both Lessee 2 and Guarantor 2.

Termination and Asset Transfer Provisions

• Lessees may terminate the lease early by settling all outstanding amounts plus a compensation equal to 20% of the lease interest for the relevant installment.
• At the end of the lease or upon early termination (subject to all payments), lessees have the right to repurchase the assets at a nominal price of RMB100 (about HK\$113.1).

Strategic Rationale and Potential Impact on Shareholders

• The finance lease is part of Greengold Leasing’s ordinary business, focusing on environmental protection projects. It is expected to provide stable revenue and cash flow over the next 6 years.
• The Board believes the transaction is commercially reasonable, on market terms, and in the best interests of shareholders.
• Given the transaction size and the security structure, it adds lower-risk, recurring income to the Group’s portfolio, potentially supporting the Company’s share value.
• This transaction also demonstrates the Group’s active involvement in the environmental sector and its capacity to leverage financial services for stable returns.

Additional Information for Investors

• Principal Risks: The lessees and guarantors are independent third parties primarily engaged in sewage treatment, and the assets are pledged as security. The layered security structure (pledges of assets, receivables, franchise rights, and equity) provides robust risk mitigation.
• Business Focus: Hing Yip Holdings continues to focus on wellness elderly care as its principal business, with strategic support from finance leasing, technology, and civil explosives. Its finance leasing arm is now further exposed to the environmental sector, which is a growth area in China’s economy.
• Financial Impact: The transaction value and expected cash flows are material and may positively influence the Group’s financial performance and share value over the lease term.
• Shareholder Action: As this is a discloseable transaction and not a major transaction, no shareholder approval is required, but it is price-sensitive information under the Listing Rules.

Board Composition (as of Announcement Date)

• Chairman: Mr. HE Xiangming
• President: Mr. FU Weiqiang
• Non-executive Director: Mr. LIU Jiali
• Independent Non-executive Directors: Mr. CHAN Kwok Wai, Mr. PENG Xinyu, Ms. LIN Junxian

Conclusion

This finance lease arrangement marks a significant transaction for Hing Yip Holdings, with a total value exceeding HK\$94 million. The structure ensures both revenue generation and risk mitigation, aligning with the Group’s strategic focus and potentially supporting its valuation in the market. Shareholders should monitor further disclosures and performance updates as this transaction progresses.

Disclaimer

This article is based on announcements made by Hing Yip Holdings Limited and is for informational purposes only. It does not constitute investment advice. Investors should conduct their own due diligence or consult professional advisers before making any investment decisions.

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