Concord NE (00182) announced that on June 24, 2024 (after trading hours), the lessee (Wuhe Concord Yinma Lake Wind Power Generation Co., Ltd., a wholly-owned subsidiary of the company) and the financier (Shanghai Yuexiu Financial Leasing Co., Ltd.) agreed to the financing lease arrangement in the way of the following agreement:
(a) The lessee and the financier shall enter into a purchase agreement, whereby the financier shall purchase the equipment from the lessee for a purchase price of RMB 360 million; and
(b) The lessee and the financier shall enter into a financing lease agreement, whereby the financier shall lease the equipment back to the lessee during the lease term, and the lessee shall pay the lease payments to the financier quarterly as consideration.
The equipment refers to several wind power equipment (including wind turbines, main transformers, cables and other wind power equipment) used for a power station. The company will generate net proceeds of approximately RMB 360 million from the sale under the financing lease arrangement, which will be used as general operating capital to provide funds for the group's business operations and activities.