Guangzhou Automobile Group Co., Ltd. — Capital/Financing Update 2021

Aug 30, 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

==> picture [67 x 41] intentionally omitted <==

==> picture [139 x 36] intentionally omitted <==

GUANGZHOU AUTOMOBILE GROUP CO., LTD.

(a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 2238)

VOLUNTARY ANNOUNCEMENT – PROPOSED MIXED-OWNERSHIP REFORM AND INTRODUCTION OF STRATEGIC INVESTORS INTO A WHOLLY-OWNED SUBSIDIARY

This announcement is made by Guangzhou Automobile Group Co., Ltd. (the “ Company ”) on a voluntary basis.

(I) SUMMARY

The Company considered and approved the “Resolution on the Mixed-ownership Reform and Introduction of Strategic Investors into a Subsidiary, GAC AION” at the 69th meeting of the fifth session of the board of directors held on 30 August 2021, pursuant to which, the Company, taking into consideration the overall development of GAC AION New Energy Automobile Co., Ltd.(廣汽埃安新能源汽車有限公司) (“ GAC AION ”), a wholly-owned subsidiary of the Company, proposed to promote the mixed-ownership reform of GAC AION through restructuring and integrating its new energy vehicle research and development capabilities, business and assets, make capital injection, and introduce strategic investors into it, with an aim to achieve in-depth integration and concentration on the Company’s new energy vehicle business, expand capital strength, optimise governance structure, establish a market-oriented incentive mechanism, and enhance core competitiveness and independent operation capabilities, thereby boosting the Company to improve and strengthen its new energy vehicle business. As at the date of this announcement, the above matters are still under preparation, and no legally binding agreement or arrangement has been entered into.

After the mixed-ownership reform and the introduction of strategic investors into GAC AION, GAC AION will remain as a subsidiary controlled by the Company. In the future, GAC AION will make full use of the capital market, actively seek listing at an opportune time, and build an independent capital platform and market-oriented incentive mechanism, to promote the sustainable development of the Company and GAC AION.

• 1 -

(II) RISK WARNING

The mixed-ownership reform and the introduction of strategic investors into GAC AION are still under preparation, and no negotiation with specific strategic investors has commenced at present. There are uncertainties as to the timing and specific targets in respect of the introduction of strategic investors. GAC AION’s future seeking of listing shall take place conditional upon satisfaction of various conditions, and there are uncertainties as to whether the relevant conditions can be satisfied, whether and when the relevant approvals or permission can be finally obtained. Investors are advised to pay attention to investment risks.

The Company will perform relevant review procedures and information disclosure obligations in accordance with relevant laws and regulations based on the subsequent development of relevant matters.

Investors are hereby reminded that China Securities Journal, Shanghai Securities News, Securities Daily, Securities Times, the websites of the Shanghai Stock Exchange (www.sse.com.cn) and The Stock Exchange of Hong Kong Limited (www.hkex.com.hk) are the Company’s designated media for information disclosure. All the information of the Company is subject to the publication or disclosure made by the Company through announcements on the aforementioned designated media, or the information officially released by the Company. Investors are advised to exercise caution in making investment decisions and pay attention to investment risks.

On behalf of the Board Guangzhou Automobile Group Co., Ltd. ZENG Qinghong Chairman

Guangzhou, the PRC, 30 August 2021

As at the date of this announcement, the executive directors of the Company are ZENG Qinghong and FENG Xingya, the non-executive directors of the Company are CHEN Xiaomu, CHEN Maoshan, CHEN Jun, DING Hongxiang and HAN Ying, and the independent non-executive directors of the Company are ZHAO Fuquan, XIAO Shengfang, WONG Hakkun and SONG Tiebo.

• 2 -