Chengtong Financial Leasing definition
Examples of Chengtong Financial Leasing in a sentence
The total amount of lease payment is estimated to be approximately RMB109.36 million (equivalent to approximately HK$119.20 million) which shall be payable by the Lessee to Chengtong Financial Leasing in ten (10) semi-annual instalments during the Lease Term.
The total amount of lease payment represents the sum of the lease principal amount (being the amount of the Purchase Price to be paid by Chengtong Financial Leasing) and the lease interest which is estimated to be approximately RMB9.36 million (equivalent to approximately HK$10.20 million).
Depending on the overall risks associated with a sale and leaseback arrangement, Chengtong Financial Leasing may request appropriate credit enhancement measure(s) on a case-by-case basis.
Chengtong Financial Leasing owns the legal title of the Leased Assets during the Lease Term.
The Purchase Price of the Leased Assets was agreed between Chengtong Financial Leasing and the Lessee with reference to the net book value of the Leased Assets of approximately RMB106.28 million (equivalent to approximately HK$115.85 million).
The Lessee shall pay a service fee of RMB0.5 million (equivalent to approximately HK$0.55 million) (“Service Fee”) to Chengtong Financial Leasing for the preliminary services provided by Chengtong Financial Leasing.
Upon the Lessee having paid all the lease payments and other payables (if any) to Chengtong Financial Leasing in accordance with the terms of the Sale and Leaseback Agreement, the Lessee shall have the right to repurchase the Leased Assets under the Sale and Leaseback Agreement at a nominal consideration of RMB1.00.
The entering into the Sale and Leaseback Arrangement is in the ordinary and usual course of business of Chengtong Financial Leasing and it is expected that Chengtong Financial Leasing will earn an income of approximately RMB9.86 million (equivalent to approximately HK$10.75 million), being the total of the Service Fee and the lease interest.
The Group’s leasing business is mainly carried out through Chengtong Financial Leasing as its principal business.
Chengtong Financial Leasing will monitor, among others, the financial conditions of the lessee(s) and the security provider(s) (if any) from time to time and may request the lessee(s) to provide security such as the payment of security money and the provision of corporate guarantee to safeguard its interests as the lessor as and when Chengtong Financial Leasing considers necessary.