New Focus Auto Tech Holdings Ltd.( http://www.nfa360.com ) ("NFA" or the "Company") (HKEX 0360, TWSE 9106) announced the completion of a licensing agreement with world leading tire manufacturer, Michelin, for the manufacturing and distribution of MICHELIN branded auto accessory products in Mainland China.
The agreement is a 3-year contract whereby New Focus Lighting & Power Technology (Shanghai) Co., Ltd, a fully-owned subsidiary of NFA Group will manufacture MICHELIN products. These include a series of auto related consumer accessories such as DC/AC power inverter, 12V electrical cooler & warmer boxes, 4-in-1 multi-purpose emergency jumpstart, series of LED work light, booster cables, car beautification kits and many other exciting new products.
In this undertaking, NFA will be responsible for product development, promotional planning, sales, distribution and after-sales services in the China market. All products will be distributed through NFA's 100+ direct-owned service retail chains, its cross-region wholesale channels throughout Greater China and also through other retail stores. A renewable option to extend the agreement for another 2 years can be negotiated.
"Joining forces with Michelin creates a compelling new market proposition and choice for Chinese car owners," said Raymond Chang, Chief Executive Officer of NFA Group. "Our job now is to execute and help Michelin Lifestyle continues its expansion into new markets. This business helps Michelin to further expand customer portfolio and also increase the range of solutions NFA offers. Given the strong brand awareness and loyalty of Michelin in automobile tires and accessories, we are confident that we will identify, source, and manufacture the most compelling and attractive auto-accessory products for the fast growing China auto market. This strategic cooperation will bring about a win-win partnership for Michelin and NFA."
Olive Han, Regional Manager of Michelin Lifestyle commented, "Such cooperation will bring additional value to our customers that require innovative, affordable, agile and technologically advanced, at the same time more 'life-style' products. Adding NFA's extensive service retail chains to our capabilities makes good sense and we believe that the two companies complement each other's strengths. We are excited to leverage on NFA's strength in both manufacturing and retail to roll out MICHELIN products to more consumers."
About NFA
New Focus Auto is the leading automobile after-sales service provider in Greater China. It currently operates more than 100+ direct-own outlets throughout Greater China region, providing basic automobile maintenance, car wash, professional detailing, modifications, body repairs and the sales of auto accessory products. In addition to direct-own stores, New Focus also manufactures, wholesales & distributes various auto accessory products throughout Greater China and other North America & European markets.
About New Focus Lighting & Power Technology (Shanghai) Co., Ltd
Founded in 1989, NFA's manufacturing unit was once the major profit generator - focusing on automotive electronics and power-related parts & accessories; over 80% of its sales is for export, mainly North America, to customers such as Canadian Tire, Costco, Autozone and Walmart, etc. NFA has de-emphasized its manufacturing business in recent years and has transformed from a car parts manufacturer to a leading auto parts distributor as well as one of the largest after-sales service retail chains operator in Greater China.
