The Board announced that on 25 June 2025, the Dongfeng Motor Group Company Limited entered into the Joint Venture Contract with NCIC (a wholly-owned subsidiary of Nissan), under which the parties agreed to establish the Joint Venture Company to jointly engage in the automotive export business. Pursuant to the terms of the Joint Venture Contract, the registered capital of the Joint Venture Company will be RMB 1,000,000,000. The Company and NCIC will contribute RMB 400,000,000 and RMB 600,000,000, respectively, toward the registered capital of the joint Venture Company.
The Joint Venture Company will be owned as to 40% and 60% by the Company and NCIC, respectively, upon its establishment. On 25 June 2025, the Company enter into the Joint Venture Contract withNCIC under which the parties agreed to established the Joint Venture Company. The principal terms of the Joint Venture Contract are set out below.
Capital Contribution. Pursuant to the Terms of the Joint Venture Contract, The registered capital of the Joint Venture company shall be RMB 1,000. The ownership structure of the Joint Venture Company upon its establishment shall be as follows: Shareholder, Capital Contribution, Shareholding percentage (RMB), The Company, 400,000,000, 40%, NCIC, 600,000,000, 60%, Total, 1,000,000, 100%.
NCIC and the Company intend to cooperate in the export of certain vehicles, parts and accessories to agreed overseas market. The establishment of the Joint Venture Company will enable the parties to leverage their financial resources and supply chain capacity in the automotive export business. The Directors (including independent non-executive Directors) of the Company are of the view that the terms of the Joint Venture contract are fair and reasonable, and the formation of the Joint Venture Company is on normal commercial terms, in the ordinary and usual course of business of the Group, and in the interests of the Company and its Shareholders as a whole.
