Concord New Energy Group Limited (CNE) has entered into a major finance-lease transaction aimed at refinancing existing lease agreements tied to its 200 MW photovoltaic and energy-storage project in Chengde, Hebei.

Key terms • Counterparties: Wholly owned subsidiary Fengning Manchu Autonomous County Juting New Energy Development Co., Ltd. (lessee) and Industrial Bank Financial Leasing Co., Ltd. (lessor). The lessor is wholly owned by Shanghai-listed Industrial Bank Co., Ltd. and is an independent third party.

• Purchase Price: RMB840.00 million for the solar and storage equipment plus auxiliary facilities (“Leased Assets”). The consideration was set with reference to the Lessee’s acquisition and construction cost of about RMB855.74 million (incl. VAT).

• Use of Proceeds: Entire proceeds will retire two finance-lease contracts signed in 2024 with China Resources Financial Leasing, which carried higher interest rates and a 15-year tenor. Those agreements will be terminated upon completion of the new financing.

• Lease Period & Payments: 14-year tenor, with quarterly payments. Interest is floating at the five-year Loan Prime Rate (LPR) minus 25 bps; the first-year rate is 3.25% based on the 20 April 2026 LPR of 3.50%. Assuming the LPR remains at 3.50% throughout, total lease payments would reach approximately RMB1.04 billion.

• Security Package: (i) corporate guarantee from CNE, (ii) equity pledge over Yinhua Century Concord’s entire stake in the Lessee, and (iii) pledge of the power-station electricity revenues. No security deposit is required.

• Buy-back & Early Termination: The Lessee may repurchase the assets for RMB0.10 billion upon lease expiry or terminate early subject to the lessor’s consent; termination fees are waived if exercised after 25 months.

Strategic Rationale Management cited lower borrowing costs versus the 2024 leases as the key driver. The Leased Assets generated after-tax profit of RMB49.74 million in FY2025, up from RMB5.24 million in FY2024. The Board believes the revised structure will optimise financing costs without affecting net assets, as the transaction will be accounted for as a refinancing.

Financial Position As of 30 April 2026, CNE carried RMB7.68 billion in bank borrowings (1.50%–4.35% interest) and RMB11.96 billion in finance leases. Management states that, supported by internal funds and available facilities, the group has sufficient working capital for at least the next 12 months.

Shareholder Approval The finance-lease arrangement exceeds the 25% “major transaction” threshold under Hong Kong Listing Rules and requires shareholder approval. A Special General Meeting is scheduled for 26 June 2026 in Hong Kong, with a record date of the same day. Settlement of the RMB840 million purchase price is expected around July 2026, subject to customary conditions and shareholder consent.