FAW and Zotye are discussing strategic investment issues.

It is reported that Zhuoyu Technology and FAW are discussing the latter's strategic investment, with a total equity transaction of over $800 million and a post-investment valuation of over 10 billion yuan. Sources close to the deal revealed that in addition to FAW's strategic investment, other automotive companies and industry funds are also participating in this round of investment. According to public information, FAW has been in talks with Zhuoyu team for investment since last year, evaluating various transaction schemes during the period. Although there were rumors that FAW intended to control Zhuoyu, from what we understand, if this round of transaction can be successfully completed, Zhuoyu will still maintain independent business and management, FAW will not achieve controlling or consolidation, and both FAW and DJI will remain important shareholders of Zhuoyu.