CN Logistics International Holdings Limited (CN Logistics) disclosed that its 70%-owned subsidiary, Siyan Baopin Supply Chain Management (Shanghai) Co., Ltd. (Siyan Shanghai), signed three lease agreements on 9 July 2026 with fellow DP World unit Cargo Services (China) Ltd. (CS China). The contracts cover continued rental of three warehouse blocks in Baoshan District, Shanghai, for the period 1 August–31 December 2026, with automatic renewal for one year unless both parties agree otherwise.\n\nKey commercial terms\n• Properties: Blocks 9, 10 and 12 at No. 2735 Fujin Road, Baoshan District, Shanghai, totalling 14,707.50 sq m of warehouse space.\n• Aggregate monthly rent: c. RMB0.36 million, payable monthly.\n• Security deposit: RMB0.06 million for Block 12; none for the other two blocks.\n• Accounting impact: the Group will recognise right-of-use assets and corresponding lease liabilities of approximately RMB6.01 million (HK$6.97 million), reflecting one automatic-renewal year under HKFRS 16.\n\nRegulatory status\n• CS China is an associate of CN Logistics’ controlling shareholder DP World, which holds c. 57.9% of the company. The leases therefore constitute connected transactions under Chapter 14A of the HKEX Listing Rules.\n• Aggregated with month-to-month “Previous Leases” (RMB2.51 million from 1 January–31 July 2026), the percentage ratios exceed 0.1% but remain below 5%. Consequently, the deals require announcement and reporting but are exempt from independent shareholder approval.\n\nStrategic rationale\nManagement cites ongoing demand for warehouse capacity to support high-end fashion and fine-wine logistics, plus the cost and operational disruption of relocation, as reasons for renewing. Rental terms were negotiated at arm’s length with reference to prevailing market rates for comparable facilities.\n\nGovernance\nThe board—comprising executive, non-executive and independent non-executive directors—unanimously approved the agreements. No director was required to abstain from voting.\n\nBackground\nCN Logistics is an international logistics solutions provider focused on air and ocean freight, distribution and cruise logistics, with a specialty in luxury and premium products. CS China provides ocean freight forwarding services and is wholly owned by DP World.