Hing Yip Holdings Announces Major Finance Lease Deal with Potential Impact on Share Value

Key Highlights

• Discloseable Transaction: Hing Yip Holdings Limited (“the Company”, Stock Code: 00132) has announced that its subsidiary, Greengold Leasing, entered into a significant finance lease agreement with Foshan City Yueqiao Construction Investment Co., Ltd. (“the Lessee”) on 21 April 2026.
• Transaction Size: The transaction involves the acquisition of ownership of specific assets from the Lessee for RMB70,000,000 (approximately HK\$80,430,000), which will be leased back to the Lessee for a 60-month term.
• Lease Payments: Over the lease term, the total payments under the finance lease will amount to approximately RMB82,646,000 (about HK\$94,960,000), including lease principal and interest.
• Assets Involved: The assets include a multi-level parking garage, glass curtain walls, interior doors and windows, and air conditioning system equipment and facilities of a commercial building in Foshan City, Guangdong Province, PRC.
• Discloseable Transaction Status: As the relevant transaction ratio exceeds 5% but is less than 25%, this constitutes a discloseable transaction under the Hong Kong Listing Rules.

Detailed Transaction Terms

• Ownership Transfer: Greengold Leasing will acquire unencumbered ownership of the assets from the Lessee on an “as-is” basis. Payment will be made in cash within 12 months from the date of the finance lease.
• Leaseback Arrangements: After the assets are transferred, Greengold Leasing will lease the assets back to the Lessee for 60 months. Lease payments, including both principal and interest, will be made quarterly throughout the lease period.
• Finance Terms and Interest Rate: The lease terms were negotiated at arm’s length, with reference to the prevailing loan prime rate (3% at the time of agreement), financing costs, and the Group’s return targets and risk tolerance.
• Termination Clause: The Lessee may terminate the finance lease early, provided all outstanding amounts and a compensation fee (20% of the total outstanding lease interest) are settled. This compensation is waived if the Lessee is not at fault. At lease end or upon early termination, the Lessee can repurchase the assets at a nominal price of RMB100 (approx. HK\$114.9).
• Incidental Documentation: The transaction includes an incidental transfer agreement, executed alongside the finance lease.

Implications for Shareholders and Share Price Sensitivity

• Revenue and Cash Flow Impact: The finance lease is expected to provide stable revenue and cash flow to Hing Yip Holdings, supporting its strategic focus on finance leasing as a core business area.
• Business Model Reinforcement: The transaction aligns with Greengold Leasing’s ordinary course of business in financing environmental protection projects and will further solidify the Group’s presence in the PRC’s finance leasing sector.
• Related Party Note: While the Lessee is an Independent Third Party under the Listing Rules, it is also a 9.28% shareholder of Greengold Leasing, adding an interesting dimension to the deal’s structure.
• Compliance and Transparency: The transaction will only take effect upon compliance with Listing Rules, ensuring full transparency and adherence to governance standards.
• Potential Share Price Impact: Given the size and strategic nature of the deal (over 5% but less than 25% of relevant ratios), it is material and could influence investor sentiment and share value, especially as it strengthens recurring income streams and operational visibility in a key sector.

Additional Information

• Company Profile: Hing Yip Holdings is primarily focused on the wellness elderly care business, with strategic support from finance leasing, technology, and civil explosives businesses. The Group also invests in fast-growing sectors such as electric utilities in the PRC.
• Lessee Background: The Lessee is a PRC-based investment and asset management company, wholly controlled by the Public Assets Office of Xiqiao Town, Nanhai District, Foshan City.
• Funding: The consideration for the asset transfer will be financed through a combination of internal resources and/or external banking facilities.
• Cost Reference: The original cost of the assets was approximately RMB73,171,000 (HK\$84,073,000).
• Exchange Rate Used: RMB1 = HK\$1.149.

Board Composition

As of the announcement date, the Board consists of two executive Directors (Mr. HE Xiangming and Mr. FU Weiqiang), one non-executive Director (Mr. LIU Jiali), and three independent non-executive Directors (Mr. CHAN Kwok Wai, Mr. PENG Xinyu, and Ms. LIN Junxian).

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consider their own circumstances and consult professional advisers before making any investment decisions. The information is based on company disclosures as of 21 April 2026 and may be subject to change.

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