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| Lease | 9. Lease
Operating leases as lessor
We have non-cancellable agreements to lease our factory buildings to tenants under operating lease. The lease terms are between 1 month to 36 months. The leases do not contain contingent payments. At March 31, 2026, the minimum future rental income to be received is as follows:
The following table represents lease income recognized in the consolidated statements of comprehensive income:
Operating leases as lessee
The Company leases premises and warehouses under various operating leases, certain of which contain escalation clauses. As of March 31, 2025 and 2026, the Company had no material operating lease arrangement with lease terms over 1 year, except for the land use rights and long term leased land. See Note 6 for additional description of the arrangement.
The following table represents lease costs recognized in the Company’s consolidated statements of comprehensive income for the year ended March 31, 2024, 2025 and 2026. Lease costs are included in cost of sales, selling, general and administrative expense on the Company’s consolidated statements of comprehensive income.
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