Harmony Auto to dispose of 45% stake in overseas NEV unit

China Harmony Auto Holding Limited (HKEX:3836) announced a major transaction involving the disposal of a 45% equity interest in its overseas new energy vehicle (NEV) subsidiary, iCar Group Limited, to Epower Global Limited (EGL), wholly-owned by Chairman Feng Changge. The Sale Shares Consideration is RMB250,000,000 and 45% of the Convertible Notes issued by the Disposal Company, at the Sale Loan Consideration of RMB80,000,000. The aggregate amount of the Consideration of RMB330,000,000 shall be fully set off against the outstanding principal amount of the CS Loans of RMB330,000,000. As part of the deal, the loans from Chairman Feng will be converted to equity and debt, and future funding will be shared proportionally. This capital restructuring includes capitalizing RMB555.5 million of shareholder loans and converting RMB385.4 million into preferred loans. The move aims to diversify financial risks and support the expansion of the Group's overseas NEV business, a sector witnessing rapid growth. The transaction, classified as a major and connected transaction, requires independent shareholder approval at an upcoming extraordinary general meeting.