BAIC MOTOR (01958): BAIC Investment and Beijing Hyundai plan to reduce capital and exit BHAF, with a total capital reduction of approximately RMB 3.144 billion.

BAIC MOTOR (01958) announces that on October 21, 2026 (after trading hours), Beijing Hyundai Motor Finance Co., Ltd. (BHAF), BAIC Motor Investment Co., Ltd. (BAIC Investment, a non-wholly-owned subsidiary of the Company), Beijing Hyundai Motor Co., Ltd. (Beijing Hyundai), Hyundai Capital Services, Inc. (Hyundai Finance) and Hyundai Motor Company (Hyundai Motor) entered into a capital reduction agreement. Accordingly, the parties agreed that: (i) BAIC Investment will exit its entire equity interest in BHAF, representing 33% of the total registered capital of BHAF, by reducing its registered capital in BHAF (in an amount equivalent to BAIC Investment's capital contribution), for a consideration of RMB 2.208 billion payable by BHAF to BAIC Investment (i.e. the exit); and (ii) Beijing Hyundai will exit its entire equity interest in BHAF, representing 14% of the total registered capital of BHAF, by reducing its registered capital in BHAF (in an amount equivalent to Beijing Hyundai's capital contribution), for a consideration of RMB 937 million payable by BHAF to Beijing Hyundai. Immediately prior to the capital reduction, BHAF was an associate of the Company and was held as to approximately 46% by Hyundai Finance, an independent third party of the Company; as to approximately 33% by BAIC Investment, a non-wholly-owned subsidiary of the Company; as to approximately 14% by Beijing Hyundai, which is jointly invested in by BAIC Investment and Hyundai Motor, each contributing 50% of its registered capital; and as to approximately 7% by Hyundai Motor, an independent third party of the Company. Upon completion of the capital reduction, neither BAIC Investment nor Beijing Hyundai will remain a shareholder of BHAF. The exit is intended to further optimize the asset structure of the Group, enhance capital utilization efficiency and the overall return on assets, and is in line with the Group's long-term development strategic plan. After prudent assessment, the Board considers that the pricing of this transaction is fair and the terms are reasonable, that it is in the commercial interests of the Group and in the overall interests of the Group and all shareholders. Through the exit, the Group will recover funds to support the Group's business development.