On 21 November 2025, BAIC Motor Corporation Limited (Stock Code: 1958) signed an equity acquisition agreement with its controlling shareholder, Beijing Automotive Group Co., Ltd. (“BAIC Group”), involving the sale of 51% equity interests in BAIC International Development Co., Ltd. (“BAIC International”). The transaction is valued at RMB1,607.5740 million in cash, subject to final appraisal filings.

Following completion, BAIC Group will hold 51% of BAIC International and BAIC Motor 49%, resulting in BAIC International ceasing to be a subsidiary of BAIC Motor. BAIC Motor forecasts a pre-tax disposal gain of about RMB2.2 billion before related costs and expenses and plans to use the proceeds to strengthen general working capital and advance its core business.

The agreement mandates that BAIC Group pay half of the consideration when it takes effect, upon approval by independent shareholders, and the remaining half within one year after completion of equity registration changes. BAIC International’s existing employee relationships and credit obligations remain unchanged following the disposal, and any profit or loss from the effective date to completion will be allocated according to the post-completion ownership structure.

The proposed disposal is a discloseable and connected transaction under the Hong Kong Listing Rules and requires independent shareholders’ approval at an extraordinary general meeting. BAIC Group and its associates will abstain from voting on the relevant resolution. BAIC Motor’s Board (excluding certain members who abstained) considers the terms and conditions fair and reasonable. Shareholders and potential investors have been cautioned that the disposal may or may not proceed, subject to final approval and fulfillment of the stipulated conditions.