Wenling Zhejiang Measuring and Cutting Tools Trading Centre Company Limited (WENLING MCT, 01379) announced that on 17 March 2026 its wholly-owned subsidiary, Wenling Sunrise Real Estate Development, signed a factory-premises lease with Wenling City Qiaoling Investment Development—an entity holding 14.48 % of WENLING MCT’s issued share capital and classified as a connected person under Chapter 14A of the Listing Rules. The agreement is back-dated to 1 January 2026 and runs through 31 December 2026.
The lease covers 17,150.54 sq.m. of factory buildings in the Sunrise Measuring and Cutting Tools Incubation Park, Wenling City. A monthly rental rate of RMB13.05 per sq.m. translates into an annual rent of RMB2.69 million, payable in advance. Qiaoling Investment may sub-lease the premises with 10 days’ prior written notice, but must bind sub-lessees to the same terms.
Arm’s-length Pricing Management states that rental terms are aligned with market levels offered to independent third-party tenants, reflecting location, size and comparable local rentals.
Regulatory Status Because the annual cap of RMB2.69 million—and the aggregated annual cap of RMB2.76 million when combined with an earlier 400 sq.m. lease signed on 30 May 2024—each exceed HK$3 million but remain below the 5 % percentage-ratio threshold, the transaction requires reporting, announcement and annual review, yet is exempt from independent shareholder approval.
Historical Context Under a prior 2023 lease covering factory premises and dormitories, Qiaoling Investment paid approximately RMB6.40 million annually for each of 2023, 2024 and 2025, staying within pre-approved caps. The smaller 2024 lease carries annual caps of RMB18,000 to RMB72,000 across 2024-2027 and recorded RMB18,000 and RMB72,000 of rental income for 2024 and 2025 respectively.
Strategic Rationale The Board notes that leasing to Qiaoling Investment boosts occupancy at the Incubation Park and secures stable rental income, deeming the terms fair, reasonable and in the interests of all shareholders. No directors were required to abstain from voting on the transaction.