Each investment of 300 million yuan / involving vehicle manufacturing and sales Lifan plans to establish a joint venture with Geely

A few days ago, from The official of Lifan Technology (Group) Co., Ltd. (hereinafter referred to as "Lifan Technology" or the "Company") that it intends to jointly invest with Geely Automobile Holdings Co., Ltd. (hereinafter referred to as "Geely Automobile") to establish a joint venture company with a registered capital of RMB 600 million, the company invests RMB 300 million in monetary funds, with a shareholding ratio of 50%, and Geely Automobile invests RMB 300 million in monetary funds, with a shareholding ratio of 50%.

Upon mutual agreement, the two sides may designate a separate entity to make the capital contribution. Lifan Technology has a related relationship with Geely Automobile, and this investment constitutes a related party transaction, but does not constitute a major asset restructuring. The general manager, deputy general manager, financial person in charge and other senior management personnel of the target company are nominated by Lifan Technology and appointed by the board of directors of the target company.

Geely Automobile will fully support the management and operation of the target company's car-making business, and jointly promote the transformation and upgrading of Lifan Technology's automobile industry with Lifan Technology, relying on Geely Automobile's systematic advantages and professional capabilities in the whole process of car manufacturing, through fine management and industrial empowerment, to integrate, improve and upgrade Lifan Technology's automobile R&D system, supply chain management, technology platform, sales channels and systematic full-manufacturing management program to achieve win-win development.

The business scope of the target company is the design, research and development, sales of the whole vehicle (including accessories, parts processing equipment, automotive decoration); import and export of goods, agent import and export, technology import and export; software development; technology development, technical services, technical advice, technology transfer. The two sides will coordinate travel companies and power exchange service companies, match models, work together to build a power exchange network ecology, and promote the development of urban power exchange standardization. The target company will continue to develop and upgrade its vehicles to meet market demand and create more value for listed companies.

It is understood that the establishment of the target company still needs the approval of the relevant competent departments, and the information such as the name, registered address and business scope of the proposed company is ultimately subject to the approval of the industry and commerce department, and continues to pay attention to it.