According to Zhitong Finance App News, Huayou Energy (01251) announced that on September 10, 2026, the lessor Yongying Financial Leasing Co., Ltd. and Tenant 1 (Beijing Huayou Oil and Gas Technology Development Co., Ltd., a subsidiary of the Company) entered into a financial lease agreement 1. According to this, (i) the lessee has agreed to sell its own assets (that is, leased asset 1) to the lessor at a cost of RMB 14 million; and (ii) the lessor has agreed to lease back the leased assets to the lessee 1 for 24 months. The total amount of lease payments under a financial lease agreement was RMB15.373 million, including the principal amount of the financial lease of RMB14 million and interest on the financial lease (including VAT) of RMB1,037,300.
One of the leased assets is oil and gas extraction equipment stored in Xinjiang. The net book value at the relevant time was approximately RMB 9.99 million. The transfer price is determined by the lessor after fair negotiation by referring to the original book value, net book value and actual condition of the equipment of leased asset 1, and based on the assessed value of leased asset 1.
On October 15, 2026, the lessor and Tenant 2 (Beijing Huayou Oil and Gas Technology Development Co., Ltd., a subsidiary of the Company) entered into a financial lease agreement 2. According to this, (i) the lessee 2 has agreed to sell its own assets (that is, leased asset 2) to the lessor at a cost of RMB 19 million; and (ii) the lessor has agreed to lease the leased asset 2 back to Tenant 2 for a period of 24 months. The total amount of lease payments under the Financial Lease Agreement II was RMB 20.4095 million, including the principal amount of the financial lease of RMB 19 million and the financial lease interest (including VAT) of RMB 1,4095 million.
The second leased asset is oil and gas extraction equipment stored in Xinjiang. The net book value at the relevant time was approximately RMB 9.5183,000. The transfer price is determined by the lessor after fair negotiation by referring to the original book value, net book value and actual condition of the equipment of the leased asset 2, and combined with the assessed value of the leased asset 2.
The directors believe that the conclusion of financial leasing transaction 1 and financial lease transaction 2 will enhance the lessee's working capital situation by increasing the tenant's capital liquidity to optimize its asset and debt structure, and support its business and operating activities. Proceeds from Financial Lease Transaction 1 and Financial Lease Transaction 2 will be used to repay bank loans, purchase equipment, and increase the Group's general working capital requirements.