On April 23rd, Mr. Tang Liangzhi, Deputy Secretary of Chongqing CPC Committee and Mayor of Chongqing met with Mr. Zhu Yanfeng, Secretary of CPC Committee and Chairman of Dongfeng Motor Corporation, and attended the signing ceremony of the Strategic Cooperation Framework Agreement between Dongfeng and the Municipal Government, the Agreement on the Joint Construction of Medium and High-end New Energy Vehicle Projects between Liangjiang New Area, Dongfeng and Sokon, and the Agreement on the Deepening of Strategic Cooperation along the Whole Value Chain between Dongfeng and Sokon. Mr. Zhang Xinghai, chairman of Sokon, and Mr. Ma Jianchang, COO of Sokon, attended the signing ceremony.

According to the Strategic Cooperation Framework Agreement, the two sides will continue to support Dongfeng and its operation in Chongqing through partners to speed up development, work together to build medium and high-end new energy vehicle projects, and extensively develop cooperation in auto parts.

According to the tripartite agreement signed by the Management Committee of Liangjiang New Area, Dongfeng and Sokon, the three parties will focus on increasing investment in Jinkang New Energy Vehicle, a subsidiary of Sokon, and provide support for the development of Jinkang New Energy Vehicle in terms of policy, financing, production, management and sales, etc., and build it into a benchmark enterprise of medium and high-end new energy vehicles with an annual output of 150,000 vehicles and an output value of more than 30 billion RMB before 2025. To this end, the Chongqing Municipal People's Government and the Administrative Committee of the Liangjiang New Area will designate a fund to jointly establish an SPV, which will invest RMB 2 billion in Jinkang New Energy.

Located in the Liangjiang New Area, Jinkang New Energy Vehicle has formed a high quality closed loop from its core technology to its industry-leading mid-to-high end intelligent electric vehicle products. Recently, Seres 5, a leading intelligent electric car, has been delivered to users.

The automotive industry is one of the pillar industries of Liangjiang New Area. At present, the Area has gathered eight vehicle enterprises such as Jinkang and hundreds of core component supporting enterprises, accounting for 70% of the Chongqing's automobile production and sales.

Under the current policy environment where the state supports the development of mixed-ownership economy and promotes mixed-enterprise reform, Sokon, drawing on the valuable experience of the joint venture, acquired 50% of the equity shares of DFSK by issuing additional shares to Dongfeng, and DFSK became a wholly-owned subsidiary of Sokon, while Dongfeng became the second shareholder of Sokon. Since then, Sokon has transformed from a private enterprise into a joint venture with both state and private capital. The cooperation between the two parties will set a new model for China's mixed economy.

With the signing of the contract, the institutional advantages of Sokon will be combined with the resource advantages of Dongfeng to give full play to the synergy and long-board effect. This will not only achieve better resource integration and overall coordinated management, but also through joint development, platform sharing, procurement synergy, synergy in the field of new energy vehicles and marketing synergy, which will better promote the development of Sokon's new energy vehicle business and accelerate Sokon's new energy vehicle segment.