QINGLING MOTORS (01122): Enters into Xinjiang Lixin Energy commercial vehicle repurchase agreement, maximum repurchase price not exceeding RMB 12.636 million

QINGLING MOTORS (01122) announced that on October 5, 2026, the Company, the finance leasing company, the dealer, and the co-debtor entered into a repurchase agreement. The Company expects that the maximum aggregate repurchase price under the repurchase agreement will not exceed RMB 12.636 million. The above maximum aggregate repurchase price was determined by reference to, among other things: (i) the purchase price of each leased item being RMB 421,200; (ii) the total quantity of leased items under the finance lease contracts being 30 vehicles; (iii) the principal amount of the maximum outstanding rent for each leased item from the date of first payment of the purchase price being RMB 421,200; and (iv) the residual purchase price of RMB 1 per leased item to be repurchased, provided that the determination of the repurchase price is independent of the condition of the leased items themselves on the repurchase date or the then fair market price. The Company will pay any repurchase price to the finance leasing company using its own funds. As at the date of this announcement, the carrying value of all leased items under the repurchase agreement is approximately RMB 12.636 million. In response to national policies and government requirements, the Company is actively exploring technological innovation and business model transformation in new energy commercial vehicles, promoting the deep integration of the industrial chain, innovation chain, and capital chain of the new energy intelligent connected vehicle industry, and cultivating and expanding the new energy commercial vehicle industry and market. Currently, although the Company's sales volume of new energy commercial vehicles has achieved relatively rapid growth in the light commercial vehicle industry, overall sales volume remains relatively low. Given that the general purchase cost of new energy commercial vehicles is relatively high, customers' usage of new energy commercial vehicles has gradually shifted from the past purchase model to a rental model. Therefore, the leasing model has become an important channel for driving sales of new energy commercial vehicles. To this end, the Company draws on the finance leasing model commonly adopted by domestic automobile enterprises, strengthens cooperation with financial institutions such as commercial banks and financial leasing companies, and provides repurchase obligations for the financing business of customers or dealers purchasing the Group's new energy vehicles. In this regard, the repurchase obligation under the repurchase agreement is in substance a performance credit enhancement guarantee provided by the Company for the sale of its own products, and does not constitute a pure financing guarantee provided for a third party. Taking into account, among other things: (i) the repurchase obligation provided by the Company under the repurchase agreement is a guarantee measure commonly adopted in finance leasing business in the automobile industry, which is conducive to driving the Company's new energy vehicle sales volume and expanding the Company's new energy vehicle sales scale and market share; (ii) the Company has the right to monitor the leased items through technical means such as the Internet of Vehicles, reducing the risk of damage to or loss of the leased items and the risk of the dealer failing to return the corresponding leased items to the Company, and the Company still has the right to require the dealer to purchase the leased items on an as-is basis; (iii) the Company will establish a digital monitoring platform for vehicle operation to monitor the intact rate, rental rate, usage efficiency, and payment collection of the leased item assets, and will share information with the finance leasing company; (iv) the Company will expand second-hand vehicle subleasing or sales business, as well as post-market businesses such as vehicle reconditioning and remanufacturing, which will help promote the Company's expansion of its second-hand vehicle business and increase revenue; (v) the dealer and/or co-debtor shall pay a performance bond to the Company under the repurchase agreement to offset any shortfall amounts payable by the dealer to the Company; and (vi) the Company is able to collect sales funds in full in advance, thereby enhancing the Group's capital liquidity and flexibility, the Directors consider that the terms of the repurchase agreement (including but not limited to the performance bond and the repurchase price) and the transactions contemplated thereunder are fair and reasonable and in the overall interests of the Company and its shareholders.