Dongfeng and China Ordnance Group Plan 727 Million Yuan in Reciprocal Equity Swaps; Insider: Little Impact on Listed Companies' Core Businesses

Late on October 19, Dongfeng Shares and Lingyun Shares simultaneously disclosed notices regarding share transfer agreements. Dongfeng Motor Group Co., Ltd. (hereinafter referred to as Dongfeng Group) and China Ordnance Industry Group Corporation Limited (referred to as Ordnance Group) have launched a reciprocal equity arrangement: Dongfeng Group will transfer its shares in Dongfeng Shares to Zhongbing Investment Management Co., Ltd. (referred to as Zhongbing Investment), while Zhongbing Investment simultaneously transfers its shares in Lingyun Shares to Dongfeng Asset Management Co., Ltd. (referred to as Dongfeng Asset Management). The combined value of the two transactions is approximately 727 million yuan. An insider stated that the simultaneous disclosure of these equity transfers amounts to an exchange of listed company shares between Dongfeng Group and Ordnance Group, will not change control rights of the listed companies, and will have little substantive impact on the core businesses of both listed companies.