Qingling Motors Leases Engine Production Equipment to Connected Affiliate IEC

Qingling Motors Co ( (HK:1122) ) just unveiled an update.

Qingling Motors Co. has entered into an equipment lease agreement with connected party Isuzu Engine Company (IEC), under which IEC will lease engine manufacturing equipment, including 4JZ engine production machinery, from Qingling from 1 September 2025 to 31 August 2028. The arrangement, classified as a continuing connected transaction under Hong Kong Listing Rules, carries an annual rental of approximately RMB9.57 million, subject to adjustments for changes in equipment value, depreciation, and utilisation, and grants IEC exclusive use and a right of first refusal over the leased equipment, with any agreed upgrades or technical modifications funded by Qingling. This structure underlines the close operational integration between Qingling, IEC and Isuzu, supports ongoing engine production collaboration, and formalises intra-group resource sharing while remaining below the threshold requiring independent shareholder approval, thereby balancing regulatory compliance with operational flexibility.

The most recent analyst rating on (HK:1122) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Qingling Motors Co stock, see the HK:1122 Stock Forecast page.

More about Qingling Motors Co

Qingling Motors Co., a Sino-foreign joint venture joint stock company incorporated in the People’s Republic of China and listed in Hong Kong, operates in the automotive sector with a focus on commercial vehicle and engine-related manufacturing. Its shareholder base includes Qingling Group as controlling shareholder and Isuzu as a substantial shareholder, and it participates in a broader manufacturing ecosystem through affiliated entities such as IEC.

Average Trading Volume: 1,060,355

Technical Sentiment Signal: Hold

Current Market Cap: HK$1.96B

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