Hong Kong-listed CDB Leasing (01606) has entered into a finance lease agreement with Shanghai Mingxing Auto Service Co., Ltd., purchasing a nationwide fleet of vehicles for approximately RMB183.00 million and leasing them back to the seller for 12 months.
Under the contract signed on 9 October 2026, CDB Leasing will pay RMB183.00 million for the vehicles—appraised at about RMB195.00 million—and will receive lease payments comprising the RMB183.00 million principal plus around RMB5.90 million in interest. Lease instalments will be settled monthly in Renminbi. At expiry, Shanghai Mingxing may repurchase the assets for a token RMB100 per vehicle. CDB Leasing will fund the asset purchase with internal resources and/or commercial borrowings.
The new transaction follows a series of finance-lease arrangements completed between February and August 2026, in which CDB Leasing acquired additional vehicles from the same lessee for a combined RMB751.00 million and leased them back for 12–36 months.
Although the standalone deal falls below the 5% threshold under Hong Kong Listing Rule 14, aggregation with prior transactions lifts the highest applicable percentage ratio to above 5% but below 25%. Consequently, the latest transaction is classified as a discloseable transaction, triggering reporting and announcement requirements without necessitating a shareholder circular or vote.
Management stated that the deal aligns with CDB Leasing’s strategy of expanding its core finance-lease business and will contribute incremental leasing income. All terms were negotiated on an arm’s-length basis, with the board considering them fair and in the interests of both the company and its shareholders.
Shanghai Mingxing Auto Service is engaged in vehicle rental, sales, appraisal, and related services. The company and its ultimate beneficial owners are independent of CDB Leasing and its connected persons.
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