New Focus Auto Tech Holdings Limited (New Focus Auto) has entered into two agreements to relocate and expand its production capacity through the construction of a new Smart Manufacturing Base in Qingpu District, Shanghai.

On 7 June 2026, the company’s 45%-owned subsidiary, New Focus Technology (Shanghai), signed: • a Construction Agreement worth RMB320.82 million with a contractor consortium led by Jiangsu Zhongzhi Construction Technology and China State Construction Third Engineering Bureau; and • a Procurement Agreement valued at RMB259.18 million with Jiangsu Zhongzhi for production equipment related to automotive power electronics and “Little Three Electric” powertrain systems for new-energy vehicles.

Aggregate consideration for the two contracts totals RMB580.00 million. Funding will be sourced from internal resources, government expropriation compensation and external borrowings.

Key project terms • Location & scale: approximately 74,378 sq m on plot QPC1-0011 (Unit H-27-13) in Qingpu, housing workshops, two smart factory buildings, a vehicle-parking facility and ancillary structures. • Construction period: 480 days, from 15 June 2026 to 9 October 2027. Contractor-caused delays incur daily liquidated damages of 0.05% of the construction fee, capped at 5%. • Payment structure: 20% advance for construction work and 5% advance for equipment procurement, with phased progress payments and retention of quality-assurance fees (3% for construction; 10% for equipment) until warranty periods lapse. • Warranties: general works—24 months; waterproofing—five years; main structure—for its designed useful life; equipment—three years or manufacturer warranty, whichever is longer.

Strategic rationale Relocation follows the compulsory expropriation of New Focus Lighting & Power (Shanghai)’s former plant. The Qingpu base will house production of inverters, chargers, power packs, cooling/heating boxes and other automotive electronic components, supporting business continuity and future growth in new-energy vehicle and energy-storage markets.

Regulatory status The transaction qualifies as a “major transaction” under Hong Kong Listing Rules, exceeding the 25% asset ratio threshold. Majority shareholder Daodu (HK) — holder of 60.69% of issued shares — has provided written approval, obviating the need for an extraordinary general meeting. A circular detailing the agreements will be dispatched to shareholders in due course.