Shanghai New Power Automotive Technology's subsidiary SAIC Hongyan has filed for reorganization.

Shanghai New Power Automotive Technology (600841.SH) announced that on July 1, 2025, the company received information from its wholly-owned subsidiary SAIC Hongyan Automotive Co., Ltd. ("SAIC Hongyan") that its creditor Chongqing Anji Logistics believes that SAIC Hongyan is unable to repay its debts and is seriously insolvent. However, they believe that SAIC Hongyan still has restructuring value and feasibility, and therefore applied to the Chongqing Wu Center Court for bankruptcy reorganization of SAIC Hongyan. The Chongqing Wu Center Court accepted the case on July 1, 2025 (Case No.: (2025) YU05 Bankruptcy Application No. 436). SAIC Hongyan has not yet received the relevant notice from its creditors. SAIC Hongyan is an important subsidiary of the company and a production and operation platform for heavy-duty truck business. If the restructuring is successfully implemented, it will help to resolve SAIC Hongyan's debts and alleviate the company's operational pressure. Although the applicant's bankruptcy reorganization application has been accepted by the court, there is still uncertainty as to whether SAIC Hongyan will be ordered to enter the restructuring process. Even if the court orders SAIC Hongyan to enter the restructuring process, it does not guarantee the success of the restructuring. There is uncertainty as to whether SAIC Hongyan will successfully restructure. The company will disclose the progress of relevant matters in a timely manner. Regardless of whether SAIC Hongyan enters the restructuring process, the company will urge SAIC Hongyan to actively carry out its daily production and operation management work on the existing basis. The possibility of SAIC Hongyan entering the restructuring process will not have a significant impact on the company's non-heavy-duty truck business.