Jinggu Forestry's subsidiary to undertake RMB 10m lease

Yunnan Jinggu Forestry (SSE: 600265) announced that its holding subsidiary, Tangxian Huiyin Wood, intends to undertake a financial leasing business with a financing limit not exceeding RMB 10 million through a sale-leaseback arrangement of its fixed assets. Approved at the company's ninth board meeting on March 21, 2025, the financing aims to broaden channels and meet operational and development needs. The lease term will not exceed 24 months, with an annual interest rate capped at 6.65%. Shareholders Cui Huijun and Wang Lancun, each holding 24.5% of Huiyin Wood, will provide personal guarantees, removing the need for Jinggu Forestry to provide counter-guarantees. As of the announcement date, Huiyin Wood has outstanding loans totaling RMB 22.45 million. The company noted potential risks associated with the financing, including possible litigation or enforcement if debt obligations are not met.