An announcement was made by New Gonow RV (ASX: 00805) regarding its wholly-owned subsidiary, Xinglongcui, entering into a factory construction and lease contract with Longcui Zhejiang on July 3, 2026.

Under the terms of the agreement, Xinglongcui has agreed to lease, and Longcui Zhejiang has agreed to rent out, a factory to be constructed on a designated plot of land for a fixed term of 20 years starting from the lease commencement date.

The target land is situated at No. 333 Tongren Road, Wutong District, Tongxiang City, Zhejiang Province, China, covering an area of approximately 14,951 square meters.

To incentivize Longcui Zhejiang to lease the factory to the group, Xinglongcui has proposed to pay the construction fees in accordance with the payment milestones specified in the construction contract between Longcui Zhejiang and Zhejiang Yuchen, with the exception of the deposit payable within 15 days of the factory construction and lease contract execution date.

Even though the construction fee is prepaid upon the factory's completion, effectively serving as a one-time payment for the 20-year rent, the group will benefit from a fixed annual rental rate.

This arrangement shields the group from the risk of future rental increases typical for similar industrial properties and secures an exclusive and irrevocable 20-year lease.

This provides the group with enhanced operational stability at a location deemed strategically suitable for the long-term development of its RV business.