Wins started its leasing business in 2009. Our business is focused on providing financing to the under-served market of established and qualified, small and medium enterprise organizations in China through equipment leasing and equipment-purchase-lease-back services. As of June 2015, we have executed over $160 million leasing contracts covering medical devices, new energy vehicles, and related infrastructure. With the strong growth in the leasing industry in China, our business has a significant opportunity for expansion.
Wins is currently seeking leasing opportunities and clients within our operating footprint. Our strategy is focused on: (1) specific industry segments where we have significant experience and connections including (but not limited to) new energy vehicles, education equipment, and medical devices; and (2) opportunities where we can leverage our leasing expertise with other financial advisory services that will allow us to offer customized financial solutions to our clients.
Wins is currently expanding its leasing model to include operational leasing alongside its traditional financial leasing business. By exploiting down-stream and up-stream opportunities in our target industries, Wins is dedicated to increasing shareholder returns, and to becoming a market leader in the Chinese leasing industry. Wins expects to continue to expand its cooperation with banks and non-bank financial institutions to maximize its access to sources of capital to grow its leasing business..
Wins engages in two principal types of leasing: (a) direct financial leasing, in which we purchase equipment directly from approved suppliers, and then lease the equipment to the lessees; and (b) purchase-and-lease-back arrangements, in which we purchase and take ownership of the lease asset (typically manufacturing equipment, but also other tangible assets including factory buildings) from the client, and then lease the asset back to the client and charge rent. Upon the expiration of the lease, the client pays a nominal fee to acquire the title and ownership of the lease asset.
TYPICAL LEASING TERMS INCLUDE:
- Leasing Target: Equipment, or some other tangible assets including factory buildings
- Typical Term: 3 – 5 years
- Leasing Rate: 10 – 30% over the current benchmark lending rate of PBOC
- Deposit: Based upon the client’s qualifications
- Transaction Fee: Based upon the client’s qualifications
- Advisory Fee: Based upon the services provided to clients
- Payment Term: Lease quarterly or semi-annually
On February 1, 2016, Wins Finance signed a purchase-and-lease agreement with Panjin Central Hospital, Liaoning province, China for medical equipment, including equipment for heart and cerebral vessels and ophthalmology, valued at $10.64 million.
On January 13, 2016, Wins Finance signed a sale-leaseback agreement with Liaoning Sg Automotive Group Co., Ltd, a leading participant in the new energy vehicle sector listed on Shanghai Stock Exchange, valued at $15.42 million.
Between June 2015 and December 2015, Wins Finance signed seven direct leasing agreements with seven hospitals located in Shanxi, Shandong and Xinjaing provinces, China for an aggregate value of $7.7 million in the tele-medical equipment sector.