Newtrend Group Holding Co., Ltd. (Newtrend Group) announced that its wholly owned subsidiary, Newtrend (Jingzhou) New Material Co., Ltd. (Newtrend Jingzhou), executed two construction agreements on 21 August 2026 to accelerate development of the Jingzhou glycine production base in Hubei Province.
• Contract scope and value – 1st Construction Contract: Jiangxi Henghui Municipal Construction Co., Ltd. will build and fit out an industrial-grade and food-grade glycine workshop (gross floor area: 23,476 sq m) for RMB51.30 million. – 2nd Construction Contract: Henan Luting Construction Co., Ltd. will undertake pile foundations, ancillary buildings, structures and supporting infrastructure for RMB65.80 million. Aggregated consideration totals RMB117.10 million, representing more than 5% but less than 25% of the applicable percentage ratios under Hong Kong Listing Rules, classifying the transactions as discloseable.
• Key contractual terms – Planned completion: no later than 30 June 2027. – Defect liability period: 24 months from completion inspection. – Payment schedule: 30 % prepayment within seven days of signing; monthly progress payments at 85 % of certified work; 90 % on completion, 97 % after final settlement; 3 % retained as quality deposit. – Hubei Chuyuan Engineering Construction Consulting Co., Ltd. appointed as works supervisor.
• Project background and financial metrics The Jingzhou glycine base targets annual capacity of 60,000 tonnes industrial-grade and 40,000 tonnes food-grade glycine. Total project investment is budgeted at RMB299.80 million, to be funded by approximately RMB228.00 million in bank loans and RMB71.80 million from internal resources and reallocated IPO proceeds. A December 2025 feasibility study projected annual sales revenue of RMB752.20 million and net profit of RMB62.70 million at full ramp-up.
• Implementation timeline – Construction commencement: August 2026 – Contract completion: by 30 June 2027 – Equipment installation: July 2027 – Base completion: December 2027 – Commercial production start: January 2028; full ramp-up targeted for January 2031.
The Jingzhou facility, listed among Hubei Province’s 2026 key projects, is designed to enhance production efficiency, reduce costs through automation and localised supply chains, and support Newtrend Group’s long-term expansion in glycine-related products.