| Share’s code： | 000550 | Share’s Name： | Jiangling Motors | No.： | 2023-013 |
| 200550 | Jiangling B |
Jiangling Motors Corporation, Ltd.Public Announcement on Termination of Equity Transfer
Transaction of a Subsidiary
Jiangling Motors Corporation, Ltd. and its Board members undertakethat the information disclosed herein is truthful, accurate and complete anddoes not contain any false statement, misrepresentation or major omission.
I. Brief Introduction
The Board of Directors of Jiangling Motors Corporation, Ltd. (hereinafterreferred to as "Company" or "JMC") approved, in form of paper meeting hold fromApril 30 to May 6, 2021, the proposal on sale of 100% of the equity of JMC HeavyDuty Vehicle Co., Ltd., a wholly owned subsidiary of JMC, through the publicbidding process at Shanxi Property Rights Exchange. The base price of biddingfor the Transaction Equity is RMB 764,069,207 thousand, and the final transactionprice shall be determined by the delisting price of investors at the Shanxi PropertyRights Exchange.
The Company has entrusted Shanxi Property Rights Exchange to perform thepublic bidding and transfer procedures. The bidding announcement has expired onAugust 9, 2021. At the expiration of the bidding announcement period, theTransaction Equity is solicited to an intended transferee, Volvo LastvagnarAktiebolag （English name: Volvo Truck Corporation）. After the expiration ofthe bidding announcement period, Volvo Lastvagnar Aktiebolag paid the depositin accordance with the relevant trading rules of Shanxi Property Rights Exchange.On August 23, 2021, by consensus, the Company signed the Equity InterestTransfer Agreement Relating to 100% of the Equity Interests in JMC Heavy DutyVehicle Co., Ltd. (hereinafter referred to as “Equity Transfer Agreement”) withVolvo Lastvagnar Aktiebolag. The base price payable for the Sale Interests underthis Agreement shall be RMB 781,400,000. This transaction does not constitute arelated party transaction.
Please refer to the Public Announcement on Bidding for Sale of SubsidiaryEquity of JMC (Announcement No.: 2021-030), the Public Announcement onProgress in Bidding for Sale of Subsidiary Equity of JMC (Announcement No.:
2021-047) published on May 8, 2021 and August 24, 2021 in the websitehttp://www.cninfo.com.cn for details.
II. Reasons for the Termination of this Transaction
Since the items required for government approval on the transaction were notcompleted within the agreed time, the Company and Volvo Lastvagnar Aktiebolagagree to terminate the transaction through negotiation.
III. Impact of the Termination of this Transaction on the CompanyThis transaction does not carry out equity delivery, industrial and commercialchange and other procedures, the Company still holds 100% of the equity ofJiangling Heavy Duty Vehicle Co., Ltd. Jiangling Heavy Duty Vehicle Co., Ltd.has suspended production and sales, and the main current expenses are for staffcompensation and equipment maintenance costs.
The Company will continue to actively promote the restructuring of JianglingHeavy Truck Co., Ltd., and make a timely announcement according to the process.
It is hereby announced.
Board of DirectorsJiangling Motors Corporation, Ltd.May 13, 2023