China MeiDong Auto Holdings Limited (the 「Company,」 stock code: 1268) has entered into a Cornerstone Investment Agreement with Seres Group Co., Ltd. (「Seres」) and China International Capital Corporation Hong Kong Securities Limited (「CICC」) on 23 October 2025. According to the agreement, the Company will subscribe for Seres H Shares under the International Offering, amounting to a total of US$20,000,000 (excluding related brokerage and levies).

The Cornerstone Investment is deemed a discloseable transaction under Chapter 14 of the Listing Rules, as its highest applicable percentage ratio exceeds 5% but is below 25%. The Investor Shares will be allocated based on the final offer price (the 「Offer Price」) outlined in Seres’s global offering, with the number of shares rounded down to the nearest board lot of 100 Seres H Shares. The agreement is subject to conditions precedent, including the effectiveness of underwriting agreements, final agreement on the Offer Price, and the granting of listing approvals by the Stock Exchange of Hong Kong.

Seres and its subsidiaries focus on new energy vehicles, engaging in research and development, manufacturing, sales, and services of both vehicles and key components. Based on audited consolidated data, Seres recorded losses before income tax and losses for the year in 2023 but achieved profitability in 2024 and the first half of 2025. As of 30 June 2025, Seres reported approximately RMB112.9 billion in total assets and RMB27.0 billion in net assets.

Executives of China MeiDong Auto Holdings Limited believe the cornerstone investment is strategically meaningful, enabling diversification of the Group's income stream and the potential for sustainable returns. Completion remains subject to satisfaction or waiver of the relevant conditions, and the Company advises shareholders and potential investors to exercise caution when dealing in its shares.