New Focus Auto Tech Holdings Limited (Stock Code: 360) announced that its indirect wholly-owned subsidiary, New Focus Lighting & Power (Shanghai), has signed a capital increase agreement with Zhongrong Juxin. Zhongrong Juxin will inject RMB100 million (approximately USD14 million) into the subsidiary, acquiring 10% of its equity interest and diluting the Group’s stake to about 90%.

Under this arrangement, Zhongrong Juxin’s investment will be made in cash, assets, or other mutually agreed forms by 30 June 2029. Following the capital injection, the subsidiary remains under the Group’s control, and its financial results will continue to be consolidated into the Group’s financial statements.

According to the announcement, the transaction constitutes a deemed disposal under the Listing Rules, as the Company’s shareholding in the subsidiary will be lowered from 100% to approximately 90%. Since at least one of the applicable percentage ratios exceeds 5% but is below 25%, the deal qualifies as a discloseable transaction subject to reporting and announcement requirements.

New Focus Lighting & Power (Shanghai) is primarily engaged in the production and sale of automotive electronic products, including inverters and chargers. The RMB100 million proceeds from the capital injection will be used exclusively for the subsidiary’s daily operations and business development. In addition, Zhongrong Juxin has agreed to collaborate on a series of business cooperations involving resource sharing and technical support for the Group’s future revenue improvement. If agreed performance benchmarks are not met by the end of 2028, the subsidiary can repurchase the 10% stake from Zhongrong Juxin at the actual amount of cash contributed.