XXF Group Holdings Limited (XXF) announced that its indirect subsidiary and certain units signed sale-and-leaseback agreements with Volkswagen Finance (China) Co., Ltd. on 30 March 2026.

The Lessees have transferred automobiles with a net asset value of approximately RMB5.30 million to the Lessor and immediately leased them back for 48 months. Total rent over the lease term amounts to RMB5.80 million, comprising the original principal (RMB5.30 million) and interest of about RMB0.50 million, reflecting market rates for comparable finance-lease products in mainland China. Upon full repayment, the vehicles can be repurchased by XXF for RMB1 each.

Security for the transaction includes a pledge over the leased vehicles. In addition, Executive Director and substantial shareholder Mr. Huang Wei has provided a personal guarantee capped at RMB472.50 million, covering this and prior lease transactions; the guarantee is on normal commercial terms and requires no counter-guarantee from the Group.

From 4 January 2026 to 26 March 2026, XXF entered into 1,042 similar agreements with the same lessor, involving individual lease principals ranging from roughly RMB0.05 million to RMB0.22 million, lease periods of 6–48 months and annual interest rates of about 4.50%–5.70%.

When aggregated, the current and previous agreements exceed the 5% but remain below the 25% percentage ratio threshold under Hong Kong Listing Rule 14.22, classifying the series as a discloseable transaction. Consequently, the deals are subject to reporting and announcement requirements but exempt from shareholder approval and circular issuance.

Management expects the arrangements to be accounted for as financing transactions, with the leased assets remaining on-balance sheet and the lease principal recognised as borrowings; no material immediate gain or loss is anticipated. Proceeds are earmarked for automobile procurement, supporting XXF’s strategy to broaden funding channels and optimise its capital structure.