SAIC Motor subsidiary joins restructuring of SAIC-Iveco Hongyan

SAIC New Power Technology Co., Ltd. (SAIC New Power), a subsidiary of SAIC Motor Corp., will invest RMB 666,363,636.36 in the restructuring of SAIC-Iveco Hongyan Commercial Vehicle Co., Ltd. This transaction involves SAIC Motor's controlling shareholder, SAIC Motor Industry (Group) Corporation (SAIC Group), and is a connected transaction. SAIC New Power, SAIC Group, Chongqing Two Rivers New Area High-Quality Development Industry Private Equity Investment Partnership, and Chongqing Development Asset Management Co., Ltd. will form a consortium to invest a total of RMB 3 bn, aiming to acquire 66% of SAIC-Iveco Hongyan post-restructuring.

Upon completion, SAIC New Power's stake in SAIC-Iveco Hongyan will fall below 20%, meaning SAIC-Iveco Hongyan will no longer be consolidated within SAIC Motor's financial statements. This deconsolidation is projected to significantly impact SAIC Motor's 2024 net profit attributable to listed company shareholders by over 50%. The restructuring plan is subject to court approval and shareholder endorsement.

SAIC Motor is also progressing with its routine financial operations, forecasting 2025 maximum daily bank deposits not exceeding RMB 12 bn and a maximum credit line of RMB 45 bn from China Merchants Bank Co., Ltd. for the year. SAIC Motor holds 1.23% of China Merchants Bank.