Qingling Motors (01122) has announced that on September 22, 2026, the company, a financing leasing firm, and dealers entered into a total of three buyback agreements with substantially identical terms.
The leased assets consist of a batch of 65 new energy vehicles that dealers rented from the financing leasing company under the financing lease contracts. The leased receivables refer to the leasing firm's claims against the dealers under those contracts, including overdue unpaid rent, the principal portion of all outstanding rent, and the buyout price, but excluding other fees, penalties, damages, and similar charges under the lease agreements. They also include related rights established by the financing leasing firm to control the leased assets, such as corresponding mortgage claims set against the dealers for the relevant vehicles.
In response to national policies and government requirements, the company is actively exploring technological innovation in new energy commercial vehicles and business model transformation. This effort aims to promote the deep integration of the industrial chain, innovation chain, and capital chain for new energy intelligent connected vehicles, thereby fostering the growth of the new energy commercial vehicle industry and its market. Currently, although the company's new energy commercial vehicle sales are growing rapidly within the light commercial vehicle sector, overall sales volume remains relatively low.
Given that new energy commercial vehicles generally carry higher purchase costs, customers have shifted from the traditional model of buying vehicles to renting them. As a result, the leasing model has become a key channel for driving new energy commercial vehicle sales. To this end, the company has adopted the financing leasing approach commonly used by domestic automakers, strengthening cooperation with commercial banks and financial leasing institutions to provide buyback obligations for financing services that support customers or dealers in purchasing new energy vehicles from the group.
In this context, the buyback obligations under these agreements essentially serve as performance enhancement guarantees for the company's own product sales, rather than constituting pure third-party financing guarantees. Taking into account that the buyback obligations provided under the agreements are a common assurance measure in the automotive industry's financing leasing business, which helps boost the company's new energy vehicle sales and expand its sales scale and market share; that the company has the right to monitor the leased assets through technologies such as the Internet of Vehicles, reducing risks of asset damage, loss, or dealers failing to return the relevant vehicles, while retaining the right to require dealers to purchase the leased assets in their current condition; that the company will establish a digital vehicle operation monitoring platform to track asset integrity, rental rates, usage efficiency, and payment collection, while sharing data with the financing leasing firm; that the company will expand used vehicle subleasing or sales operations, as well as aftermarket businesses such as vehicle reconditioning and remanufacturing, which aids in developing its used vehicle segment and increasing revenue; that dealers must pay performance deposits to the company under the agreements, which can offset any shortfall amounts dealers owe the company; and that the company can receive full sales proceeds in advance, enhancing the group's liquidity and flexibility, the directors believe the terms of the buyback agreements, including but not limited to performance deposits and buyback prices, and the transactions contemplated thereunder are fair and reasonable, and consistent with the overall interests of the company and its shareholders.