Volkswagen China Capital increase Jianghuai Volkswagen approved to hold 75% stake in the latter

SMM11: on November 24, 2020, Anhui Jianghuai Automobile Group Co., Ltd. received a notice from Volkswagen China Investment, according to the Investment Agreement on Anhui Jianghuai Automobile Group holding Co., Ltd. signed by Volkswagen China Investment with Anhui State-owned assets Supervision and Administration Commission and Jianghuai Automobile Holdings on June 11, 2020. And the "Investment Agreement on Jianghuai Volkswagen Co., Ltd." signed with Jianghuai and Jianghuai Volkswagen on June 11, 2020, Volkswagen China Investment has submitted an antitrust review declaration to the antitrust review authorities of the relevant countries with pre-reporting obligations on the transactions under the two investment agreements.

After the capital increase is completed, Jianghuai Group holds 25% stake in JAC Volkswagen, Volkswagen China Investment holds 75% stake in JAC Volkswagen, and JAC Volkswagen will introduce Volkswagen Group brand products.