360 Announcement: Transfer of Part of the Equity of the Participating Company Nezha Automobile

On the evening of June 26, 360 issued an announcement that in order to optimize the shareholding structure of the target company, improve the governance mechanism of the target company, and for the purpose of long-term cooperation and development of mutual benefit and win-win between the two parties, the company plans tohold79,994,371.67Yuan registered capital (without actual investment), corresponding to the transfer of 3.5320% equity of Nezha Auto to Jiaxing Xinzhu Equity Investment Partnership (Limited Partnership) and Shenzhen Jingcheng Open Enterprise Management Center (Limited Partnership).

The announcement shows that 360 has participated in two rounds of investment in Nezha Auto, the B round investment of 900 million yuan has been paid on May 31, 2021, and the first 1 billion investment in the D1 round has been paid on October 27, 2021. The accumulative paid-in investment is 1.9 billion yuan.After the completion of the equity transfer, 360 still holds 11.4266% equity of Nezha Auto.

In April 2022, Nezha Auto sold 9,004 vehicles through terminals; in May, Nezha Auto delivered 11,009 vehicles, a year-on-year increase of 144% and a month-on-month increase of 24.9%.

360 Company previously stated that the investment in Nezha Auto has a far-reaching strategic purpose, that is, to take the safety ofintelligent and connectedvehicles as the cornerstone, and to empower its accumulation and experience in digital security fields such as network security, intelligent hardware security, and Internet of Vehicles security. Zha Auto, and relying on the in-depth strategic cooperation between the two parties, further in-depth research on the safety of intelligent networked vehicles, so as to better provide safety services for car companies and industry chain partners.