Jiangling Motors Corporation, Ltd.Public Announcement on Foreign Exchange Hedging BusinessJiangling Motors Corporation, Ltd. and the members of its Supervisory Boardundertake that the information disclosed herein is truthful, accurate and completeand does not contain any false statement, misrepresentation or major omission.

Important Content Tip:

1. Purpose of the transaction: for the purpose of hedging and avoiding exchange raterisks, reducing the risk of exchange rate fluctuations by locking in the exchange rate.Trading varieties: foreign exchange.Trading instrument: forward settlement.Trading venues: financial institutions approved by regulatory agencies and qualified tooperate foreign exchange derivatives trading business.Transaction amount: The quota of the forward foreign exchange transactions ofJiangling Motors Corporation, Ltd. (hereinafter referred to as “JMC” or “the Company”)is US$ 81 million and Euro€ 12 million. The Company expects to use no more thanUS$ 64 million and Euro€ 9 million in trading margin and rights fees, with a term of2025. At any point within the year, the trading amount shall not exceed these quotas.

2. Deliberation procedures performed: The Company's Board of Directors consideredand approved the “Proposal on Carrying out Foreign Exchange Hedging Business” inform of a paper meeting from March 21 to March 27, 2025. The proposal does not needto be submitted to the shareholders' meeting for consideration.

3. Risk Warning: There are market risk, liquidity risk, credit risk, operational risk andlegal risk in the process of business development, and investors are advised to payattention to the investment risk.

I. Overview of foreign exchange hedging business

1. Purpose of investment: In order to prevent exchange gains and losses from adverselyaffecting the Company when there are large fluctuations in exchange rates, the companyplans to carry out forward settlement and sale of foreign exchange business withfinancial institutions. The Company does not engage in speculative transactions andreduces the risk of exchange rate fluctuations by locking in the exchange rate on thebasis of normal production and operation and on the principle of soundness, with thepurpose of hedging and avoiding exchange rate risks.

2. Transaction amount: The quota of the forward foreign exchange transactions of theCompany is US$ 81 million and Euro€ 12 million. The Company expects to use nomore than US$ 64 million and Euro€ 9 million in transaction margin and rights fees,with a term of 2025. At any point within the year, the trading amount shall not exceedthese quotas.

3. Trading places and methods: The Company's proposed foreign exchange hedgingbusiness mainly consists of forward settlement and sale of foreign exchange and otherbusinesses. Trading venues are financial institutions approved by regulatory agenciesand qualified to operate foreign exchange derivatives trading business.

4. Transaction period: the year of 2025.

5. Source of funds: the Company's self-owned funds, not involving the use of raisedfunds or bank credit funds.

6. Feasibility analysis: the forward foreign exchange trading business is based on theneeds of daily business activities, which is in line with the Company's requirements forrisk avoidance and prevention, and complies with relevant national policies and laws.

II. Procedures for consideration of foreign exchange hedging operationsThe Company's Board of Directors considered and approved the Proposal to Carry outForeign Exchange Hedging Business in form of a paper meeting from March 21 toMarch 27, 2025, which does not involve related party transactions and there is no needto perform the review procedures for related party transactions. In accordance with therelevant provisions of the “Shenzhen Stock Exchange Self-Regulatory Guidelines forListed Companies No. 7 - Transactions and Related Party Transactions (Revised in2023)” and other relevant regulations, this proposal is not required to be submitted tothe Shareholders' Meeting for consideration.

III. Risk Analysis and Risk Control Measures of the Foreign Exchange HedgingBusinessi. Risk analysis:

1. Market risk: In the case of large exchange rate fluctuations, losses may arise fromthe deviation of the exchange rate of the forward contract from the market spot rate onthe maturity date of the contract;

2. Liquidity risk: it may be due to inaccurate forecasts that the delivery date signed bythe forward is inconsistent with the actual delivery date, resulting in insufficient fundsavailable for use at the time of delivery, which triggers the risk of fund liquidity andleads to failure to deliver as scheduled;

3. Credit risk: It may be due to inaccurate forecast, the delivery date signed by theforward is not consistent with the actual delivery period, resulting in the risk of delayeddelivery caused by the forward foreign exchange transactions cannot be deliveredaccording to the agreed time;

4. Operational risk: the risk may be caused by imperfect internal control mechanismand improper operation mode of operators;

5. Legal risk: may face legal risks due to insufficient completeness of contract terms or

disputes over jurisdictional terms.

ii. Risk control measures:

1. The Company conducts forward foreign exchange transactions based on scientificforecasts of forward foreign exchange demand in accordance with its business plan tomeet operational needs, to avoid and prevent the impact of exchange rate fluctuationson the Company, and does not engage in speculative transactions;

2. With regard to the possible performance guarantee issues arising from foreignexchange derivative transactions, the business execution department of the Companywill establish a tracking mechanism to implement tracking management of the progressof business receipts and payments to effectively prevent the risk of default on deliveryand ensure that potential losses are controlled within the minimum scope;

3. Through strengthening the training of business knowledge, the Company willenhance the comprehensive business quality of relevant personnel and improve theability to identify and prevent risks;

4. The Company has formulated the Foreign Exchange Risk Control Process, and theoperators strictly follow the requirements of the system;

5. The Company chooses financial institutions with legitimate qualifications, goodcredit and long-term business relations with the Company as counterparties for forwardforeign exchange transactions, with low risk of default.

IV. Accounting policies and accounting principlesIn accordance with the Ministry of Finance's Accounting Standard for BusinessEnterprises (ASBE) No. 22, “Recognition and Measurement of Financial Instruments,”ASBE No. 24, “Hedge Accounting,” ASBE No. 37, “Presentation of FinancialInstruments,” and other relevant regulations and its guidelines, the Company conductscorresponding accounting treatments for the proposed forward foreign exchangetransactions to reflect relevant items on the balance sheet and income statement.

V. Documents for reference

1. Resolutions of the Board of Directors of Jiangling Motors Corporation, Ltd.;

2. Feasibility analysis report;

3. The Foreign Exchange Risk Control Process.

Supervisory BoardJiangling Motors Corporation, Ltd.March 29, 2025