(15 December 2022—HONG KONG) As the world’s leading manufacturer of sophisticated manufacturing for semi-trailers and specialty vehicles, CMIC Vehicles (Group) Co., Ltd. (“CIMC Vehicles” or the “Group”, Stock code: 301039.SZ/01839.HK) is pleased to announce that the Release Ceremony for CIMC-Shaanxi Automobile Sanhao Development Center (“Sanhao Development Center”) was grandly held in Xi'an, Shaanxi.

In 2022, with more than ten years of in-depth cooperation, Shaanxi Automobile Group and CIMC Vehicles Group once again jointly established the "CIMC-Shaanxi Automobile" cooperation organization. This time they establish Sanhao Development Center. The center launches CIMC-Shaanxi Automobile's dump trucks, cargo trucks, semi-trailers and tank trailers, which are outstanding commercial vehicle products. They offer more professional, higher-quality and more diversified integrated solutions and services for fully-assembled vehicles with chassis and bodies so that clients have better experiences on value beyond their expectation.

Innovation from Separate Purchase to Integrated Products and Services for "Turnkey" Fully-assembled Vehicles

Mr. Li Guiping, CEO and President of CIMC Vehicles (Group) Co., Ltd., Mr. Zhi Baojing, General Manager of Shaanxi Heavy Duty Automobile Co., Ltd., Mr. Wang Zhujiang, Senior Vice President of CIMC Vehicles and the CEO and President of CIMC Vehicles ‘s Champion Tanker Business Group, Mr. Zhao Chengjun, Marketing Director and General Manager of Shaanxi Heavy Duty Automobile, Mr. He Xiyong, Chairman and General Manager of Shandong Times Tiancheng Investment Co., Ltd., and Mr. Yang Wenguo, Chairman of the Shaanxi Marketing Area Alliance of Shaanxi Heavy Duty Automobile Co., Ltd., Mr. Shu Lei, Assistant President of CIMC Vehicles Group, Mr. Kong Fei, Assistant President of CIMC Vehicles Group, and more than 100 client representatives of various sectors of Sanhao Development Center came to the scene to witness the unveiling and release of Sanhao Development Center.

Mr. Zhi Baojing, General Manager of Shaanxi Heavy Duty Automobile Co., Ltd., delivered a speech

Mr. Zhi Baojing, General Manager of Shaanxi Heavy Duty Automobile Co., Ltd., addressed that with more than ten years of cooperation between Shaanxi Automobile and CIMC Vehicles, there have been fruitful results in that it has accelerated the transformation of product structure, mindset-changing, urge for change, and breakthroughs and it has built a closer community between CIMC Vehicles Group and Shaanxi Automobile Group in terms of marketing for heavy-duty truck. The establishment of “Sanhao Development Center" is another milestone in the new journey of strategic cooperation between CIMC Vehicles and Shaanxi Automobile. He looks forward to cooperating with CIMC Vehicles Group to adhere to the strategic goal of "Three-Five-Seven" and to take the branding activities of an automobile company as the strategic direction to deeply implement the innovation-driven development strategy, so as to achieve increases in both sales and market shares.

Speech by Mr. Li Guiping, CEO and President of CIMC Vehicles Group

Mr. Li Guiping, CEO and President of CIMC Vehicles Group, said that Sanhao Development Center is guided by the philosophy of "Innovation-driven, High-quality Supply". It aims at generating demand and momentum for commercial vehicles and it serves as a good driver to promote the structural reform of the supply side of the industry. As such, clients can purchase main engines and specialty vehicles separately, seek financial services separately, and carry out after-sales services separately. It serves the direction for transition to integrated products and services for "turnkey" fully-assembled vehicles. In the future, CIMC- Shaanxi Automobile Sanhao Development Center will escort industrial chain partners to achieve high-quality development.

The leaders and guests on the scene jointly unveiled the project. It symbolized the new journey of cooperation between Shaanxi Automobile Group and CIMC Vehicles Group.

Mr. Zhi Baojing, General Manager of Shaanxi Heavy Duty Automobile Co., Ltd., and Mr. Li Guiping, CEO and President of CIMC Vehicles Group jointly unveiled the plaque of CIMC·Shaanxi Automobile's Sanhao Development Center to announce the official establishment of the Sanhao Development Center.

The leaders and guests visit Sanhao Development Center after the launching ceremony. The exhibition hall presented the pain points and needs of customers, which triggered heated discussions among the leaders and guests.

Sincerely Meeting Clients’ Demand for Fully-assembled Vehicles

The exhibition halls in orange shows the sincerity of Sanhao Development Center to clients.

The three exhibition halls, namely “Dump Trucks and Cargo Trucks Hall”, “Semi-trailers Hall”, and “Tanker Hall” exhibited the highlights of their respective businesses.

Dump Trucks and Cargo Trucks Hall

Semi-trailers Hall

Tanker Hall

Forging a Strong Alliance to Jointly Promote Supply-side Structural Reform of the Commercial Vehicle Industry

Group Photo

CIMC-Shaanxi Automobile Sanhao Development Center is innovative in the marketing model of Shaanxi Automobile Group and CIMC Vehicles Group on the basis of more than ten years of cooperation between them.

Since March 2022, Shaanxi Automobile Group and CIMC Vehicles Group have begun discussion on jointly promoting the supply-side structural reform of the main engine and truck bodies in the commercial vehicle industry. In September, both parties established CIMC-Shaanxi Automobile Cooperation Organization", which clearly proposed to jointly construct a new development pattern of dump trucks, cargo trucks, semi-trailers, and tank trailers for CIMC-Shaanxi Automobile. On 13 October, the second meeting of CIMC-Shaanxi Automobile Cooperation Organization was held in Dongguan. It clarified the plan for the establishment of "CIMC Vehicles-Shaanxi Automobile Fully-assembled Vehicles Integrated Product Exhibition Center".

With the establishment of CIMC-Shaanxi Automobile Sanhao Development Center, CIMC-Shaanxi Automobile Cooperation Organization will undertake the mission of "seven integrations" of the two company groups, namely, the integration of marketing organization, channel organization, branding activities and delivery promoting, marketing policy, product development and service coordination. It maximizes the technology, brand and channel strength of Shaanxi Automobile Group and the advantages of CIMC Vehicles Group's Sophisticated Manufacturing System across the globe to provide customers with products and services with highly matched main engine and truck bodies and high cost performance of the fully-assembled vehicles.

Looking ahead, Shaanxi Automobile Group and CIMC Vehicles will firmly grasp the market opportunities in the automobile industry and jointly promote the structural reform of the supply side of the commercial vehicle industry for high-quality development of the industry.