HONGHUA GROUP: Honghua Electric and Taiping Petrochemical have signed an operating lease agreement
HONGHUA GROUP signed an operating lease agreement with Taiping Petrochemical, under which Honghua Electric will lease 16 units of 6,000 horsepower electric fracturing pumps and related equipment, with a rental fee of 8.9963 million yuan per quarter, an initial lease term of 36 months, and a possible extension of 24 months. This agreement aims to address the equipment supply gap, enhance service capacity, stabilize the supply chain, ensure operational continuity, and optimize procurement costs
According to the announcement from Honghua Group (00196), on August 22, 2025, Taiping Petrochemical (as the lessor) and the company's subsidiary Honghua Electric (as the lessee) entered into an operating lease agreement. Under this agreement, Honghua Electric agrees to lease operating lease assets from Taiping Petrochemical, with quarterly lease payments of RMB 8.9963 million. The initial lease term is 36 months, and under certain circumstances, the lease term will be extended by 24 months according to the operating lease agreement. The operating lease assets consist of 16 units of 6,000 horsepower electric fracturing pumps and related control systems and supporting equipment.
The operating lease agreement is entered into by the lessee in the course of its daily and general business operations. The company believes that entering into the operating lease agreement will help address the anticipated equipment supply gap, strengthen the lessee's ability to provide uninterrupted services to meet business needs, and will assist in stabilizing the supply chain, ensuring operational continuity, and optimizing procurement costs
