ZGC TEC LEASING (01601) entered into a financial leasing agreement with Mawei Electric Power Technology (Jiangxi).

ZGC TEC LEASING (01601) announced on November 15, 2024 that the company, as the lessor, entered into a finance lease agreement II with lessee Mawei Electric Power Technology (Jiangxi) Co., Ltd. The agreement includes the following: (i) the lessor will purchase the leased asset II owned by the lessee for a transfer price of RMB 15 million; and (ii) the lessor will lease back the leased asset II to the lessee for a lease term of 12 months with a total lease payment of approximately RMB 15.6134 million, including the finance lease principal of RMB 15 million and finance lease interest income (including VAT) of approximately RMB 0.6134 million. The leased asset II is a stator production line with a net book value of approximately RMB 22.7241 million. The directors believe that entering into finance lease agreement II will bring income and profits to the company during the lease term, in line with the company's business development strategy. As the terms of the finance lease agreement II are based on normal commercial terms, the directors believe that the terms of the finance lease agreement II are fair and reasonable, and are in the overall interest of the company and its shareholders.