600303: Liaoning Sg Automotive Group Co.Ltd(600303) announcement on the holding of the briefing meeting for investors purchasing Tianjin Meiya assets

Stock abbreviation: Liaoning Sg Automotive Group Co.Ltd(600303) securities code: 600303 No.: pro 2022-006 Liaoning Sg Automotive Group Co.Ltd(600303)

Briefing for investors on purchasing Tianjin Meiya assets

Announcement of convening

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

Liaoning Sg Automotive Group Co.Ltd(600303) (hereinafter referred to as “the company”) was on the “SSE e interactive” network platform of Shanghai Stock Exchange from 15:00 to 16:00 on January 14, 2022( http://sns.sseinfo.com. )The “SSE e interview” column of the is in the form of network interaction; 16: From 00 to 17:00, the “briefing meeting for investors on purchasing Tianjin Meiya assets” was held on site. With regard to the holding of this briefing meeting, the company has disclosed the notice on the briefing meeting for investors purchasing Tianjin Meiya assets on Shanghai Securities News, China Securities News and the website of Shanghai Stock Exchange on January 12, 2022. The relevant matters are hereby announced as follows: I. the holding of this briefing meeting

On January 14, 2022, the company’s chairman Gong Da, executive vice president Feng Xiaojun, vice president Cai Wenhua, chief financial officer Li Jian, project director Zhang Jie, Tianjin Meiya asset side representative, securities affairs representative Xi Zhuocheng and other staff attended the investor briefing. The management of the company conducted interactive exchanges and communication with investors and answered questions of general concern to investors within the scope allowed by information disclosure.

2、 Main questions raised by investors and replies of the company at the meeting

The company answered the questions concerned by investors at this briefing, and the main questions and answers are summarized as follows:

1. On September 28, 2021, it was announced that the Chery S18 and s18d models purchased were “advanced and mature technology”. The data can be found that these two models were products ten years ago. They were listed in 2009 and stopped production in 2011, which was far from meeting the life cycle. The total sales volume was less than thousands, which was proved to be failed products ten years ago. Both models are more than 1200 kg, and the competing cars are less than 800 kg, so the cost has no advantage. What evidence does the company have to prove that these two models have passed ten years and “advanced and mature technology” please answer in detail.

A: Dear investors, Hello! Liaoning Sg Automotive Group Co.Ltd(600303) aiming at the mainstream core models in the market, formulate challenging functional performance indicators, develop a new electronic and electrical architecture of the whole vehicle based on the performance indicators, develop and match with the new three electric system, improve the quality experience of central control, interior decoration and space, and modify and adjust the appropriate chassis.

After removing the engine and gearbox of the two new energy vehicle products, a series of lightweight development and improvement have been carried out for the vehicle weight, and now the vehicle weight has been controlled at about 830kg. The appearance size of the two new energy vehicle products is large and the space is better than that of the models of the same level. The whole vehicle is made of thick materials, and the driving is stable and safe. Very stable passenger car platform, reliable quality and comfortable driving. Mature three electric system of high-speed vehicle, good handling, reasonable humanized design and convenient operation.

In terms of product development, the company has carried out lightweight transformation and configured the electric drive axle independently developed by Shuguang axle. Compared with the same level competing models, the company intends to develop vehicle body size and technical route similar to that of the same function. The A00 level electric vehicle has advanced property. The mold assets remain intact and are currently available for use. The technology of relevant models is mature and stable. In the environment of A00 electric vehicle market growth, the company’s products have certain competitiveness and are expected to be recognized by the market.

The two products introduce mature load-bearing body technology and chassis technology. At the same time, Dawning automobile has mature and perfect technical reserves and development in non load-bearing body and new energy bus. It has its own advanced and mature core “three electricity” technology for many years, which gathers many advantages and has stable technology. Through technology integration, the development of Dawning automobile in the field of new energy passenger vehicles has been realized three to five years ahead of schedule. The introduction of two new models has greatly accelerated the development process of Dawning small new energy passenger vehicles. The linear design of the two vehicles shows a sense of flexibility and gives people a strong visual impact. The whole modeling surface is full and sharp, the posture is stable and noble, and the body lines are sharp, smooth and changeable.

Liaoning Sg Automotive Group Co.Ltd(600303) has platform advantages and strong enterprise strength, deeply explores the internal demands of consumers, and puts ensuring product quality in the first place. It is expected that the announcement development will be completed within the first quarter of 2022, the product quality will be comprehensively improved, and high-end high-quality new energy vehicles will be launched. It is expected to start mass listing before the third quarter of 2022, which will soon meet the needs of consumers. Thanks for your attention!

2. Hello, Mr. Cai. How about the market competitiveness of the two models after mass production

A: Dear investors, Hello! The two models are similar to competing models such as Changan Benben e-star. They are five door and four seat models in terms of shape and size, which are competitive. The products of the two models are positioned as pure electric low-speed vehicles with right of way, and the target market is the market replacement demand of low-speed vehicles and tricycles.

Using the core technology of electric drive axle and suspension developed and produced by Shuguang, the cost control of the whole vehicle is better, the cost is lower and the market competitiveness is stronger. Using the original chassis, ingenious layout and the latest blade battery, a new CTP battery module is designed, which is lighter than similar models. At the same time, it has its own core competence of three electricity. The materials used for the whole vehicle are solid, durable, safe and reliable. The streamlined design of the appearance shows a sense of flexibility, and the body lines are smooth and dynamic. Thank you for your attention!

3. Huatai has taken over dawning for three years, and its performance has not improved. Does the board of directors have goals and what measures it plans to take to improve the market value of the company and protect the interests of small and medium-sized investors. Whether the company’s purchase of model molds many years ago can effectively improve the company’s profitability.

A: Dear investors, Hello! At present, the company’s complete vehicle business involves passenger cars, pickup trucks and special vehicles, which belong to the segment market of the automobile industry. Although the company has a relatively complete series of complete vehicle products, the company has invested less in new products in recent two years, and the business is in a relatively downward state. To this end, the company will successively launch modified new energy electric buses, hydrogen powered buses and modified pickups (including electric pickups) in 2022, laying a good foundation for a breakthrough in production and marketing in 2022. The frame and axle business belongs to the company’s traditional advantageous market, ranking first in China for more than ten consecutive years. Meanwhile, in 2021, the company has completed the technical research and development of aluminum alloy frame and is actively docking mass production business with mainstream new energy vehicle enterprises. The company has developed and completed China’s advanced 4WD Electric drive axle, coaxial direct electric drive axle and other products with core technology, which have been supplied to the main engine factory in batches.

Based on the existing business segments such as axle, pickup truck and bus, further expand the market share, tap the internal potential and optimize the expenses and costs. The overall business objectives of the company in 2022 will be disclosed in the annual report of 2021. In the future, efforts will be made to change the loss situation of main business in Liaoning Sg Automotive Group Co.Ltd(600303) 10 years.

Strategically, the company will take the economical new energy passenger vehicle as the breakthrough, quickly cut into the new energy passenger vehicle business with the largest market capacity, and take the economical new energy passenger vehicle as the current key development direction of the company’s complete vehicle business. The company considers to seek models with the least investment cost, controllable risk, the shortest development cycle and relatively mature products and technologies. At the same time, the company selects A00 new energy passenger vehicles with rapid growth and the highest market capacity as the entry point, so as to complete the product development and listing of the company’s pure electric passenger vehicles at a small cost. In the future, new energy passenger vehicles will be cultivated into the company’s core business, further significantly increase the company’s revenue and improve the company’s profitability. Thank you for your attention!

4. Can the company independently produce motors and electric control devices that remove batteries in the new energy “three electricity” system

A: Dear investors, hello. We have our own VCU, BMS and MCU software and hardware technology, and adopt the core technology of electric drive axle and suspension developed and produced by Liaoning Sg Automotive Group Co.Ltd(600303) ourselves. The cost control of the whole vehicle is better, the cost is lower, and the market competitiveness is stronger. Using the original chassis, ingenious layout and the latest blade battery, a new CTP battery module is designed, which is lighter than similar models. At the same time, it has its own core competence of three electricity. The materials used for the whole vehicle are solid, durable, safe and reliable. The streamlined design of the appearance shows a sense of flexibility, and the body lines are smooth and dynamic. Thank you for your attention.

5, Zhang chief, Hello, may I ask how the advanced technology, maturity and economy of the assets are purchased?

A: Dear investors, Hello! The appraisal expert group hired by the company’s evaluation organization has made technical appraisal on the mature technology of the body and chassis, and advanced technology, maturity and economy of the mould clamp and inspection assets, and has issued the appraisal opinion. Compared with the same grade competing model, the company intends to develop the vehicle body size and the technical route similar to that, and the functions are basically the same, on the A00 level electric vehicle, Mold assets have advanced nature. The mold assets remain intact and are currently available for use. The technology of relevant models is mature and stable. In the environment of A00 electric vehicle market growth, the company’s products have certain competitiveness and are expected to be recognized by the market. The first listed model is a five door four seat economical electric car with about 30000 yuan and A00 platform. It has large space, good handling and high vehicle safety. It is suitable for the working class to use it for transportation.

The assets acquired are in good condition. In the early stage, the two models have been verified by product technology development, and the matching development of new energy pure electric has been completed. The two new energy passenger vehicle models have been tested and announced by the state. The announcement numbers are sdh7000bevrl1 and sdh6390bevql1. The technology of relevant models is relatively mature and stable. Thank you for your attention! At the on-site meeting, investors fully communicated with the company’s management on the situation related to the asset acquisition. For all the contents of this investor briefing, please refer to the “SSE e interactive” network platform of Shanghai Stock Exchange( http://sns.sseinfo.com. )”SSE e interview” column.

Thank you for your active participation in this investor briefing. The company expresses its heartfelt thanks to the investors who have paid attention to and supported the development of the company for a long time!

Liaoning Sg Automotive Group Co.Ltd(600303)

January 14, 2022

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