HARMONY AUTO (03836) announced that on September 1, 2025 (after trading hours), the Target Company (iCar Group Limited, a non-wholly owned subsidiary of the Company), the Company, EGL, and the Subscriber (Golden Link Worldwide Limited) entered into a share subscription agreement. Under the agreement, the Subscriber has conditionally agreed to subscribe for, and the Target Company has conditionally agreed to allot and issue, subscription shares representing 9.9999% of the Target Company's enlarged issued share capital for a subscription amount of US$40 million (equivalent to approximately RMB285 million).

The Subscriber is principally engaged in investment holding and is an indirect wholly-owned subsidiary of BYD COMPANY (01211). Upon completion, the Target Company will be held 49.5001% directly by the Company, 40.5000% directly by EGL, and 9.9999% directly by the Subscriber.

According to the voting proxy agreement, the Company will control the exercise of 90.0001% voting rights of the Target Company and will continue to consolidate the Target Group's results after completion of the proposed subscription. The Target Company will remain a non-wholly owned subsidiary of the Company.

The subscription proceeds will be used for the Target Group's general working capital purposes. The proposed subscription is based on the long-term strategic synergy between the Subscriber and the Company, as well as the Subscriber's recognition of the Company's strong brand operation capabilities and valuable overseas channels.

The proposed subscription will deepen cooperation between both parties and accelerate the overseas market expansion of BYD COMPANY's new energy vehicle brands, covering sales and after-sales services. Additionally, it will optimize the Company's capital structure, enhance overall competitiveness, and create sustainable long-term value for shareholders.