Concord New Energy : DISCLOSEABLE TRANSACTION FINANCE LEASE ARRANGEMENT

Date:

11 May 2021

Parties:

(i) the Financier as the purchaser;

(ii) the Seller as the seller; and

(iii) the Lessee to undertake certain rights and obligations for the

transactions contemplated under the Sale and Purchase Agreement.

Subject asset:

The Equipment, which shall be purchased by the Financier from the

Seller for the purposes of leasing the Equipment to the Lessee from the

Financier.

Purchase price:

The Purchase Price payable by the Financier to the Seller for the

purchase of the Equipment shall be approximately RMB205.8 million

(approximately HK$245 million), which was determined after arm's length

negotiation between the Seller, the Lessee and the Financier with reference

to the market value of the Equipment and the amount of financing needs

required by the Group under the Finance Lease Arrangement. As at the

date of this announcement, the Equipment has not been fully acquired by

the Lessee.

The Purchase Price to be paid to the Seller (being the total amount to be

borrowed by the Group under the Finance Lease Arrangement) is equal to

the original purchase price of the Equipment plus the management costs

of the Group attributable to the Equipment. The original purchase price

of the Equipment is in line with its market value, which is determined

based on the Group's experience in acquiring comparable equipment

accumulated in the past years and in monitoring the market value of

comparable equipment, which includes reviewing quotations obtained from

suppliers of comparable equipment who are independent third parties.

The Purchase Price shall be paid by three instalments.

Date:

11 May 2021

Parties:

(i) the Financier as the lessor; and

(ii) the Lessee as the lessee.

Subject asset:

The Equipment, which shall be leased from the Financier by the Lessee.

Finance Period:

A period of 3 years commencing from the date of payment of the first

instalment of the Purchase Price.

Lease payments and

The Lessee shall pay quarterly Lease Payments to the Financier during the

interest rate:

Finance Period. The total Lease Payments represents the Purchase Price

paid by the Financier for the purchase of the Equipment plus interest

attributable to the Finance Lease Arrangement to be determined based on

the following applicable interest rate in respect of each quarter for which

a Lease Payment is made.

The applicable interest rate is a floating interest rate equal to the relevant

5-year LPR plus 1%. The relevant LPR for the first Lease Payment is

the LPR announced on 20 April 2021, being 4.65%, which gives rise

to an applicable interest rate of 5.65% for the first Lease Payment. The

applicable interest rate will be adjusted every 12 months on the first

quarterly Lease Payment in every 12-month period of the Finance Period,

which will, after adjustment, equal to the LPR in the month before such

quarterly Lease Payment plus 1%. Assuming the applicable interest rate

was 5.65% throughout the Finance Period, the total Lease Payments would

be approximately RMB234.9 million (approximately HK$279.6 million).

The Lease Payments and the applicable interest rate were determined

after arm's length negotiation between the Lessee and the Financier with

reference to the prevailing market cost of equipment finance lease.

Security documents:

As security for the due performance of all the Lessee's obligations under

the Finance Lease Agreement, the Lessee, the Company and certain

wholly-owned subsidiaries of the Company (namely Century Concord

Wind Power and Beijing Heting) shall, in favour of the Financier, execute

the Security Documents consisting of the guarantees and the pledges on

(i) the equity interest in the Lessee and (ii) receivables arising from the

operation of the Power Plant.