Summary by Moomoo AI
HUACHEN CHINA (RENAULT) SIGNED A SETTLEMENT AGREEMENT WITH THE DADONG GOVERNMENT ON JULY 16, 2024, AGREEING TO COMPENSATE IN RMB 451,401,416. On the same day, Wachen-Renault also signed a lease agreement with the owner for a lease of 10 years for new office buildings and factories for production. The lease transaction will be treated as a group acquisition and under Hong Kong Financial Reporting Guidelines No. 16 “Leasing” confirms the use of the asset, which involves a percentage of more than 5% but less than 25%, and therefore constitutes a disclosable transaction. In addition, because the requisitions are imposed by the government, Wachen-Reno has no discretion and is therefore not considered a “publishable transaction”. The establishment of the lease agreement is intended to facilitate the relocation of the plant in order to resume production. The lease terms were negotiated fairly by both parties and were considered reasonable by most directors, except Dr Lin Jilan, to be in the best interests of the company and shareholders.
