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Dongfeng announced that it has entered into an agreement with the parent company Dongfeng Motor Company and Dongfeng Industrial and the parties agreed to set up a joint venture company to develop, produce and sell special vehicles and commercial commercial vehicles. Dongfeng will take up 75.08% of the equity of the joint venture company. Its capital commitment will be approximately RMB 258 million (the same below). Dongfeng Industrial will disregard 74.518 million yuan, accounting for 21.71% of the equity of the joint venture company. In addition, Dongfeng Motor Company entered into an equity transfer agreement with the joint venture company, and the former will transfer 50% equity of Dongfeng Shenyu Vehicles to the latter to make a contribution of 11.036 million yuan, accounting for 3.21% of the equity of the joint venture company. Dongfeng Shenyu Vehicles is principally engaged in the research and development, production, modification and sales of Dongfeng Shenyu agricultural vehicles and agricultural machinery, provision of technical consulting and after-sales services, vehicle modification and sales, R&D, production and sales of auto parts and components, general machinery research and development, Production, sales, technical consultation and after-sales service, sales and production of radiators and castings, machining, automobile (only authorized products of Dongfeng Automobile) production, surface processing of auto parts, sales of steel products, import and export of goods, import and export of technology, and plant and equipment lease.
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