Foton Motor and CATL jointly launch battery leasing business

In order to meet the market competition demand of new energy business and promote the development of new energy business of Beijing Foton Motor Co., Ltd. (hereinafter referred to as "Foton Motor" or "the Company"), the Company plans to jointly invest with CATL to establish Foton Times New Energy Technology Co., Ltd. (tentative name, subject to final approval by the market supervision and management department) to carry out new energy battery operating leasing business, jointly explore the new energy scene operation market, and enhance the market competitiveness of the Company's new energy business. The registered capital of the joint venture is RMB 200 million. The Company plans to invest RMB 100 million in cash and hold 50% of the equity of the joint venture, while CATL plans to invest RMB 100 million in cash and hold 50% of the shares.

The establishment of the joint venture will help improve the market competitiveness of new energy business products and promote new car sales; it will help build a new energy business ecosystem, expand the new energy scene operation market, and gain a higher market share; it will help master the core resources of batteries and establish core competitive advantages. This cooperation will not lead to changes in the company's main business and business scope, and will not affect the company's independence, and there will be no situation that harms the interests of the company and shareholders.