China Development Bank Financial Leasing Co., Ltd. Announces Major Acquisition of Photovoltaic Power Stations

Key Transaction Highlights

• Acquisition Announcement: On 17 April 2026, China Development Bank Financial Leasing Co., Ltd. (“CDB Leasing”, Stock Code: 1606) announced that it has entered into an asset purchase agreement to acquire residential photovoltaic power stations and ancillary equipment in Hunan and Hubei provinces for a total consideration of approximately RMB650 million.
• Strategic Expansion: The acquisition is part of CDB Leasing’s strategy to expand its market share in the operating lease market for the residential photovoltaic new energy sector, leveraging its strengths in leasing and new energy investments.
• Funding: The purchase will be funded through the company’s own funds and/or commercial bank loans.
• Transaction Structure: After the acquisition, CDB Leasing will lease these assets to third-party lessees via operating lease agreements.

Background and Aggregation of Transactions

Previous Related Transaction: Within the last 12 months, CDB Leasing entered into a previous asset purchase agreement on 28 February 2026 for residential photovoltaic assets in Guangdong, Jiangsu, Zhejiang, and Tianjin, valued at RMB695 million.

Listing Rules Implications: While each transaction individually falls below the 5% threshold for reporting under Hong Kong Listing Rules, both transactions must be aggregated because the sellers are controlled by the same ultimate beneficial owner (Zhejiang Chint Electrics Co., Ltd., listed on the Shanghai Stock Exchange). The aggregated percentage ratio exceeds 5% but remains below 25%, making the current acquisition a “discloseable transaction.” This triggers reporting and announcement requirements, but exempts the deal from circular and shareholder approval requirements under Chapter 14 of the Listing Rules.

Details of the Asset Purchase Agreement

• Date: 17 April 2026
• Buyer: China Development Bank Financial Leasing Co., Ltd.
• Sellers: Seven project companies, including Changde Chengtai New Energy Technology Co., Ltd., wholly owned by Chint Anneng Digital Power (Zhejiang) Co., Ltd. The ultimate beneficial owner is Zhejiang Chint Electrics Co., Ltd.
• Purchase Targets: Residential photovoltaic power stations and ancillary equipment located in Hunan Province and Hubei Province, with a net book value of approximately RMB650 million.

Rationale and Strategic Benefits

The board considers the transaction to be conducted within ordinary business operations and aligned with CDB Leasing’s growth strategy in the new energy sector. The deal is expected to:

• Enhance CDB Leasing’s position in the residential photovoltaic operating lease market.
• Broaden the company’s asset portfolio in new energy infrastructure.
• Leverage synergies between the seller and buyer for market expansion.

Directors affirm that the terms are fair, reasonable, and in the interests of shareholders.

Company and Seller Information

• CDB Leasing: Established in 1984 and converted to a joint stock limited company in 2015. Provides comprehensive leasing services in aviation, shipping, energy, high-end equipment, and inclusive finance.
• Sellers: Seven project companies focused on power generation, photovoltaic technology, equipment sales, installation, and leasing, all wholly owned by Chint Anneng Digital Power (Zhejiang) Co., Ltd.

Governance and Directors

• Executive Director: Ms. MA Hong
• Non-Executive Directors: Mr. ZHANG Kesheng, Mr. ZHANG Chuanhong
• Independent Non-Executive Directors: Mr. LIU Ming, Mr. WANG Guiguo, Ms. LIU Siqin

Potential Price Sensitivity and Shareholder Considerations

Price Sensitivity: The aggregation of large-scale acquisitions in the residential photovoltaic sector reflects a significant increase in CDB Leasing’s exposure to the new energy industry. This strategic shift and expansion could positively impact future earnings, asset base, and market valuation. Investors should monitor the company’s ability to deploy and manage these assets efficiently, as well as the performance of the operating lease agreements with third-party lessees. The aggregate deal size (RMB1.345 billion) is substantial and may be considered price sensitive due to the company’s increased investment and growth in the new energy leasing business.

Shareholder Implications: No shareholder approval is required, but the deal is expected to strengthen the company’s growth prospects and align with its long-term strategy. The successful execution of these leases could enhance recurring revenue streams and improve profitability.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research and consult with professional advisors before making investment decisions. The information is based on public disclosures as of 17 April 2026 and may be subject to change.

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