South Manganese Investment Limited disclosed that its wholly-owned subsidiary Guangxi Huiyuan Manganese has signed a finance lease agreement with Guangxi Financial Leasing on 17 July 2026. Under the arrangement, Guangxi Financial Leasing will acquire certain manganese-processing equipment from Huiyuan Manganese for RMB150.00 million (approximately HK$172.50 million) and immediately lease it back to the seller for 48 months.

During the lease term, Huiyuan Manganese will make 16 quarterly rental payments amounting to RMB165.30 million (about HK$190.10 million), calculated on an interest rate set at the prevailing one-year Loan Prime Rate plus 1.8%—equivalent to 4.80% at signing. The rate will reset annually on 1 January in line with the latest one-year LPR plus the same spread. A consulting fee of RMB0.75 million (HK$0.86 million) is payable to Guangxi Financial Leasing.

Legal ownership of the equipment—originally recorded at a cost of RMB351.73 million and a net book value of RMB152.43 million as of 31 December 2025—will transfer to Guangxi Financial Leasing for the duration of the lease. Upon settling all obligations, Huiyuan Manganese can repurchase the assets for a nominal RMB1,000 (HK$1,150).

To secure the obligations, fellow subsidiary South Manganese Group has executed a guarantee covering all lease payments and related duties, effective until three years after the final instalment is made.

Classified as a discloseable transaction under Hong Kong Listing Rules (highest applicable percentage ratio above 5% but below 25%), the deal requires publication but not shareholder approval. Management highlighted that the transaction, negotiated on arm’s-length terms, will provide additional working capital without constituting an asset disposal under applicable accounting standards.