New Focus Auto Tech Holdings (New Focus Auto) has entered into two agreements valued at a combined RMB 579.99 million to develop a smart manufacturing base in the Yangtze River Delta Integrated Demonstration Zone, Qingpu District, Shanghai.

The project is split into: 1) a Construction Agreement worth RMB 320.82 million for civil, structural, electromechanical and fit-out works; and 2) a Procurement Agreement worth RMB 259.18 million for production equipment and installation services geared toward automotive power-electronics and “Little Three Electric” powertrain lines for new-energy vehicles.

A contractor consortium of Jiangsu Zhongzhi Construction Technology and China State Construction Third Engineering Bureau will deliver the 480-day build, scheduled from 15 June 2026 to 9 December 2027. Jiangsu Zhongzhi will act as lead contractor and handle equipment procurement; both parties assume joint and several liability. Delay penalties are set at 0.05% of the construction fee per day, capped at 5%.

The Smart Manufacturing Base will occupy a 38,614 sq m site and provide 74,377.67 sq m of gross floor area, including two workshops, two smart factory buildings, a vehicle-parking facility and ancillary infrastructure.

Funding is structured as approximately 28% from government expropriation compensation linked to the company’s prior plant relocation, about 70% from external borrowings, and the balance from internal resources. Management expects property, plant and equipment to rise by roughly RMB 542.21 million and borrowings by about RMB 406.00 million, with cumulative finance costs of around RMB 87.29 million over an assumed five-year financing term.

The transaction has been classified as a major transaction under Hong Kong Listing Rules. Majority shareholder Daodu (Hong Kong) Holding, holding 60.69% of issued shares, has provided written approval, obviating the need for an extraordinary general meeting.

Management states that the new facility is critical to maintaining production continuity after the expropriation of the company’s existing Shanghai site and will support future growth in automotive electronics, new-energy and energy-storage products.