Brilliance China intends to transfer its 49% equity interest in Shenyang Brilliance Power for free and continues to suspend trading

Brilliance China (BRILLIANCE CHI) announced on the Hong Kong Stock Exchange on the evening of June 21 that according to the reorganization plan, it is suggested that in order to facilitate the reorganization of Brilliance, the company will transfer equity interests to Brilliance for free (the company's 49% equity interests in Shenyang Brilliance Power). ).As the reorganization plan is still subject to the approval of Brilliance's creditors at the creditors' meeting to be held on June 30, 2022 and the approval of the Shenyang Intermediate People's Court, the possible disposal is only subject to the approval of the reorganization plan by the Brilliance creditors and the Shenyang Intermediate People's Court , will make it real.After the completion of the Disposal, the Company will no longer hold any equity interest in Shenyang Brilliance Power.Trading in the shares on the Stock Exchange will be suspended from 9:00 a.m. on March 31, 2021 pending compliance with the resumption guidelines, and will remain suspended until further notice.

Brilliance and certain of its related enterprises have submitted a reorganization plan to the Shenyang Intermediate People's Court, which contains proposals to require minority shareholders of certain relevant enterprises of Brilliance to transfer their interests in those related enterprises to Brilliance in order to facilitate the reorganization of Brilliance.If the reorganization plan is approved by Brilliance's creditors and the Shenyang Intermediate People's Court, the company, as a minority shareholder of Shenyang Brilliance Power, will be required to transfer its equity interests to Brilliance.

Shenyang Brilliance Power is a limited liability company established in the PRC and as at the date of this announcement, its equity interests are owned as to 49% by the company and 51% by Brilliance, and are therefore an associate of the company.Shenyang Brilliance Power is principally engaged in the manufacture and sale of powertrains in the PRC.

Brilliance is a state-owned limited liability company established under the laws of China on September 16, 2022, and is managed by the State-owned Assets Supervision and Administration Commission of the Liaoning Provincial People's Government and the Liaoning Provincial Social Security Fund Council (Liaoning Provincial Industrial (Entrepreneurship) Investment Guidance Fund Management Center ) beneficially own 80% and 20% respectively.Brilliance's principal businesses include, but are not limited to, investment holding and the manufacture, modification and sale of automobiles.

The announcement stated that the sale of equity interests will facilitate the success of Brilliance's reorganization and will also benefit the group, as the group will be able to share the distribution of Brilliance's reorganization as a creditor of Brilliance.As Brilliance is a controlling shareholder, a successful implementation of the Brilliance reorganization will provide the market with certainty about the company's shareholding and prospects.