Qingling Motors (01122) has announced that on October 5, 2026, the company, a finance leasing company, a dealer, and a co-debtor entered into a repurchase agreement.
The company expects that the maximum aggregate repurchase price under the repurchase agreement will not exceed RMB 12.636 million, Qingling Motors (01122) said.
The maximum aggregate repurchase price was determined by reference to, among other things: (i) the purchase price of each leased item being RMB 421,200; (ii) the total number of leased items under the finance lease contracts being 30 vehicles; (iii) the maximum outstanding principal amount of rent for each leased item from the date of first payment of the purchase price being RMB 421,200; and (iv) the residual purchase price of RMB 1 per leased item to be repurchased, provided that the determination of the repurchase price is unrelated to the condition of the leased items on the repurchase date or the fair market price at that time.
The company will pay any repurchase price to the finance leasing company using its own funds. As of the date of this announcement, the book value of all leased items under the repurchase agreement is approximately RMB 12.636 million.
In response to national policies and government requirements, the company is actively exploring technological innovation and business model transformation in new energy commercial vehicles, promoting deep integration of the industrial chain, innovation chain, and capital chain of new energy intelligent connected vehicles, and cultivating and expanding the new energy commercial vehicle industry and market.
At present, although the company's new energy commercial vehicle sales have achieved relatively rapid growth in the light commercial vehicle industry, overall sales remain relatively low. Given that the general purchase cost of new energy commercial vehicles is relatively high, customers' usage patterns for new energy commercial vehicles have gradually shifted from the traditional car-buying model to a car-leasing model. Therefore, the leasing model has become an important channel for driving new energy commercial vehicle sales.
To this end, the company has drawn on the finance leasing model commonly adopted by domestic automobile enterprises, strengthened cooperation with financial institutions such as commercial banks and financial leasing companies, and provided repurchase obligations for the financing business of customers or dealers purchasing the group's new energy vehicles.
Accordingly, the repurchase obligation under the repurchase agreement is in substance a performance enhancement guarantee provided by the company for the sale of its own products, and does not constitute a financing guarantee purely for third parties.
After taking into account, among other things: (i) the repurchase obligation provided by the company under the repurchase agreement is a guarantee measure commonly adopted in the finance leasing business of the automobile industry, which is conducive to driving the company's new energy vehicle sales and expanding the sales scale and market share of the company's new energy vehicles; (ii) the company has the right to monitor the leased items through technical means such as the internet of vehicles, reducing the risk of damage or loss of the leased items and the risk that the dealer fails to return the corresponding leased items to the company, and the company still has the right to require the dealer to purchase the leased items on an as-is basis; (iii) the company will establish a digital monitoring platform for vehicle operation to monitor the intact rate, rental rate, usage efficiency, and payment collection of the leased item assets, and will share information with the finance leasing company; (iv) the company will expand second-hand vehicle sub-leasing or sales business, as well as aftermarket businesses such as vehicle refurbishment and remanufacturing, which will help promote the company's expansion of the second-hand vehicle business and increase revenue; (v) the dealer and/or co-debtor must pay a performance bond to the company under the repurchase agreement to offset any shortfall payable by the dealer to the company; and (vi) the company can collect the full sales proceeds in advance, thereby enhancing the group's capital liquidity and flexibility, the directors consider that the terms of the repurchase agreement (including but not limited to the performance bond and the repurchase price) and the transactions contemplated thereunder are fair and reasonable and in the overall interests of the company and its shareholders.