According to Zhitong Finance App, Lide Education (01449) issued an announcement. On January 26, 2024 (after the transaction period), the company's comprehensive affiliate, Heilongjiang Business School and Zhejiang Construction Leasing entered into a financial leasing agreement (Zhejiang Construction) and a lease-back goods transfer agreement (Zhejiang Construction) for financial leasing arrangements (Zhejiang Construction).
According to reports, leased assets (Zhejiang Construction) are leased assets (Zhejiang Construction), including computers, electronic teaching equipment, printers, displays, cameras, etc. The unaudited book value of leased assets (Zhejiang Construction) on January 15, 2024 was approximately RMB 872.151 million.
The announcement stated that by entering into a financial leasing arrangement (Zhejiang Construction), the Group can obtain financial resources to meet its general working capital requirements, and the Group's operations will not be adversely affected by the sale of leased assets (Zhejiang Construction), as such assets will be immediately leased back to the Group. According to the financial leasing arrangement (Zhejiang Construction), there is no transfer of ownership or right to use assets to Zhejiang Construction Leasing. According to IFRS, the proposed transaction under the Financial Leasing Arrangement (Zhejiang Construction) does not constitute a sale of assets, and therefore will not generate any income or loss that needs to be recorded in the Group's income statement. After the lease expires, the Group will pay a nominal retention fee to transfer the leased assets (Zhejiang Construction) back to the Group. Therefore, in reality and in terms of accounting processing, making a financial lease arrangement (Zhejiang Construction) is actually about the same as borrowing a secured loan.