Share’s code: 000550 Share’s Name: Jiangling Motors No.: 2019-014 200550 Jiangling B Jiangling Motors Corporation, Ltd. Public Announcement on Forecast of the Routine Related Party Transactions in 2019 Jiangling Motors Corporation, Ltd. and its Board members undertake that the information disclosed herein is truthful, accurate and complete and does not contain any false statement, misrepresentation or major omission. I. Brief Introduction The Board of Directors of Jiangling Motors Corporation, Ltd. (hereinafter referred to as "JMC" or the "Company") approved the 2019 routine related party transaction forecast proposal from March 19 to March 26, 2019. The routine related party transaction forecast proposal covered all the related parties with JMC, where total annual transaction with each of them is projected to be over RMB 52 million. These related parties were clarified as Type A and Type B. Type A means the related parties with JMC, where total annual transactions with each of them is projected to be over RMB 520 million, and Type B means the related parties with JMC, where total annual transactions with each of them is projected to be between RMB 52 million and RMB 520 million. The Board of Directors approves the 2019 forecast proposal for type A routine related party transactions and authorizes the Execute Committee to finalize detailed contracts with the individual related parties and to submit them to the Shareholders’ Meeting for approval. When voting on the proposals at the shareholders’ meeting, Ford Motor Company (“Ford”) will withdraw from the voting on the related party transactions associated with Ford and its affiliates; Jiangling Motor Holdings Co., Ltd. (“JHC”) will withdraw from the voting on the related party transactions associated with Jiangling Motors Company Group Co., Ltd. (“JMCG”) and its affiliates, Changan Automobile Co., Ltd. and its affiliates, or JHC and its affiliates. The Board of Directors approves the 2019 forecast proposal for type B routine related party transactions and authorizes the Execute Committee to sign detailed contracts with the individual related parties. Nine directors shall attend this meeting and eight were present. Director Thomas Fann did not attend this meeting, and he authorized Vice Chairman Anning Chen to represent him at this meeting. 1 When voting on the proposal, Director Anning Chen, Director David Johnston and Director Thomas Fann withdrew from the voting on the related party transactions associated with Ford and its affiliates; Director Qiu Tiangao and Director Xiong Chunying withdrew from the voting on the related party transactions associated with JMCG and its affiliates; Director Qiu Tiangao ,Director Xiong Chunying and Director Yuan Mingxue withdrew from the voting on the related party transactions associated with JHC and its affiliates; all the other directors agreed with this proposal. II. Types and amounts of routine related party transactions 1. Main Content and amounts of routine related party transactions in 2019 i. Type A, which means the related parties with JMC, where total annual transactions with each of them is projected to be over RMB 520 million, are listed as follows: RMB million 2019 Amount 2018 transactions incurred as of transactions Related Party Category Content amount the disclosure amount (Forecast) date (Actual) Deposit interest 32 2 17 Deposit interest and Guarantees 6 4 4 JMCG Finance accumulation Payment settlement / 34,404 2,297 20,170 Company settlement Deposits amount Financing 250 1 0- subvention Subtotal 34,692 2304 20,191 Settlement amount 6,112 0 0 Ford Motor Settlement Financing Finance (China) amount 90 0 0 subvention Co., Ltd. Subtotal 6,202 0 0 Settlement amount 5,001 0 0 Settlement Changan Auto Financing amount 80 0 0 Finance Co., Ltd. subvention Subtotal 5,081 0 0 Purchase of goods Purchase 4,598 271 2,778 and service JMCG and its Sales of goods and subsidiaries Sales 512 30 374 service Subtotal 5,110 301 3,152 Purchase of goods Purchase 2,500 120 1,359 and service Ford and its Sales of goods and subsidiaries Sales 100 0 11 service Subtotal 2,600 120 1,370 2 Purchase of goods Purchase 20 1 9 Jiangxi Jiangling and service Motors Imp. & Sales of goods and Sales 1,582 130 1,228 Exp. Co., Ltd. service Subtotal 1,602 131 1,237 Nanchang Purchase of goods Purchase 1,472 66 922 Baojiang Steel and service Processing Distribution Co., Subtotal 1,472 66 922 Ltd GETRAG Purchase of goods Purchase 1,135 71 801 (Jiangxi) and service Transmission Subtotal 1,135 71 801 Company Purchase of goods Jiangxi Huaxiang Purchase 990 75 521 and service Auto Sales of goods and Components Co., Sales 31 0 14 service Ltd. Subtotal 1,021 75 535 Purchase of goods Purchase 854 55 456 Jiangxi Jiangling and service Lear Interior Sales of goods and Sales 20 1 6 System Co., Ltd service Subtotal 874 56 462 Jiangxi JMCG Purchase of goods Purchase 263 17 193 Specialty and service Vehicles Sales of goods and Sales 287 13 257 Corporation, service Ltd. and its Subtotal 550 30 450 subsidiaries Hanon Systems Purchase of goods Purchase 378 18 250 (Nanchang) and service Co., Ltd. Subtotal 378 18 250 ii. Type B, which means the related parties with JMC, where total annual transactions with each of them is projected to be between RMB 52 million and RMB 520 million, are listed as follows: RMB million 2019 Amount 2018 transactions incurred as of transactions Related Party Category Content amount the disclosure amount (Forecast) date (Actual) Nanchang Unistar Purchase of goods Purchase 455 22 298 Electric & and service 3 Electronics Co., Ltd. Subtotal 455 22 298 Faurecia Emissions Purchase of goods Purchase 415 23 199 Control and service Technologies Subtotal 415 23 199 (Nanchang) Co., Ltd. Changan Ford Purchase of goods Purchase 380 14 28 Automobile CO., and service Ltd. Subtotal 380 14 28 Nanchang Meclans Purchase of goods Purchase 280 12 92 Auto Mirror Co., and service Ltd. Subtotal 280 12 92 Purchase of goods Purchase 155 4 86 Jiangling Motor and service Holdings Co., Ltd. Sales of goods and Sales 70 0 39 and its subsidiaries service Subtotal 225 4 125 Purchase of goods Purchase 70 1 50 Jiangxi Jiangling and service Group Special Sales of goods and Sales 119 9 85 Vehicle Co., Ltd. service Subtotal 189 10 135 Purchase of goods Purchase 71 7 47 and service Nanchang Hengou Sales of goods and Industry Co., Ltd. Sales 41 0 29 service Subtotal 112 7 76 Nanchang Yinlun Purchase of goods Purchase 108 7 54 Heat-exchanger Co., and service Ltd. Subtotal 108 7 54 Purchase of goods Jiangxi ISUZU Purchase 95 7 50 and service Engine Co., Ltd. Subtotal 95 7 50 2. Main Content and amounts of routine related party transactions in 2018 RMB million Differences Actual between 2018 2018 transactions actual transactions transactions amount transactions Related Party Category Content amount amount as % of amount and (Actual) (Forecast) similar forecast business transactions amount (%) 4 Deposit Deposit interest 17 27 9.04% -37% interest and JMCG Finance Guarantees 4 4 100% 0% accumulation Company settlement Payment settlement 20,170 29,366 - -31% amount / Deposits Purchase of goods Purchase 2,778 3,456 12.80% -20% JMCG and its and service subsidiaries Sales of goods and Sales 374 394 1.32% -5% service Purchase of goods Purchase 1,359 2,003 6.26% -32% Ford and its and service subsidiaries Sales of goods and Sales 11 - 0.04% - service Purchase of goods Jiangxi Jiangling Purchase 9 382 0.04% -98% and service Motors Imp. & Sales of goods and Exp. Co., Ltd. Sales 1,228 1,762 4.35% -30% service Nanchang Baojiang Steel Purchase of goods Processing Purchase 922 1,110 4.25% -17% and service Distribution Co., Ltd. GETRAG (Jiangxi) Purchase of goods Purchase 801 1,064 3.69% -25% Transmission and service Company Jiangxi Huaxiang Purchase of goods Purchase 521 666 2.40% -22% Auto and service Components Co., Sales of goods and Sales 14 22 0.05% -36% Ltd. service Purchase of goods Jiangxi Jiangling Purchase 456 691 2.10% -34% and service Lear Interior Sales of goods and System Co., Ltd. Sales 6 15 0.02% -60% service Jiangxi JMCG Purchase of goods Purchase 193 260 0.89% -26% Specialty and service Vehicles Corporation, Sales of goods and Sales 257 215 0.91% 20% Ltd. and its service subsidiaries Hanon Systems Purchase of goods Purchase 250 331 1.15% -24% (Nanchang) and service Co., Ltd. 5 Nanchang Unistar Electric Purchase of goods Purchase 298 326 1.37% -9% & Electronics and service Co., Ltd. Faurecia Emissions Control Purchase of goods Purchase 199 293 0.92% -32% Technologies and service (Nanchang) Co., Ltd. Nanchang Purchase of goods Meclans Auto Purchase 92 150 0.42% -39% and service Mirror Co., Ltd. Jiangling Motor Purchase of goods Purchase 86 152 0.40% -43% Holdings Co., and service Ltd. and its Sales of goods and Sales 39 55 0.14% -29% subsidiaries service Purchase of goods Nanchang Purchase 47 80 0.22% -41% and service Hengou Industry Sales of goods and Co., Ltd. Sales 29 - 0.10% - service Nanchang Yinlun Purchase of goods Purchase 54 72 0.25% -25% Heat-exchanger and service Co., Ltd. Jiangxi ISUZU Purchase of goods Purchase 50 67 0.23% -25% Engine Co., Ltd. and service The Company carried out the forecast on the upper limit of the transaction limit and submitted it to the shareholders’ meeting for Explanation by the Board of Directors of review and approval when the amount of the routine related party the Company on the difference between transaction in 2018 was expected to be. The final actual amount of the the actual amount and the forecast part of the related party transactions is less than 20% of the projected amount of the routine related party amount, which is due to the fact that the Company and the related transactions parties do not trigger or reduce the sales commodity and the purchase of the goods according to the actual demand of the enterprise. It is a normal business behavior. In our opinion, the actual amount of routine related party transactions Explanation by Independent Directors of occurring by the Company in 2018 is more than 20% below the forecast the Company on the difference between amount, which is due to the fact that the Company and related parties the actual amount and the forecast did not trigger or reduce the sales of goods and purchase of goods amount of the routine related party according to the actual needs of the Company. It is a normal business transactions behavior, in line with the objective situation, without harming the interests of the company and minority shareholders. 6 Disclosure date and index for the proposal on forecast amount of routine related party transactions in 2018: the No. 2017-049 announcement was published on the website www.cninfo.com.cn on December 5, 2017. III. Brief Summary of Related Parties Name Legal Registered Main Business Scope Registered Relationship Representative Capital Address JMCG Finance Zhong Junhua RMB 500 Primarily providing financial services to Nanchang Subsidiary of Company million JMCG and its affiliates, including credit, City JMCG account clearing and deposit, etc. Ford Motor Ronald R RMB 500 Accept deposits of 3 months or above Shanghai wholly-owned Finance (China) THACKRAH Million from overseas shareholders, City subsidiary of Co., Ltd. wholly-owned subsidiaries of the group Ford and domestic shareholders, and loan margin from car dealers. Providing car loan business, etc. Changan Auto Feng Changjun RMB 500 Accept deposits of 3 months or above Chongqing Associate of Finance Co., Ltd. Million from overseas shareholders, City Changan wholly-owned subsidiaries of the group Automobile and domestic shareholders. Accept loan Co., Ltd. margin from car dealers and automobile lease security deposit from Lessee. Providing car loan business, etc. JMCG Qiu Tiangao RMB 1,500 Manufacturing of vehicle, engine, Nanchang Shareholder of million chassis, modified vehicle, automotive City JHC components, vehicle quality test, sales of in-house produced commodity and providing relevant after sale services. Ford Motor William Clay $ 1.222 Design, manufacturing, assembly and Detroit, Controlling Company Ford Jr. billion sales of cars, trucks, parts and U.S.A shareholder of components, financing, leasing of the Company vehicles and equipment, and insurance (hold 32% business. equity) Jiangxi Jiangling Liao Zanping RMB 33.61 Import and export business of all kinds Nanchang Associate of Motors Imp. & million of goods and technology; logistics and City JMCG Exp. Co., Ltd. packing, etc. Nanchang Hong Weichun RMB Processing, selling, distribution and Nanchang Associate of Baojiang Steel 147.40 storage of steel. City JMCG Processing million Distribution Co., Ltd GETRAG Stephan Weng Euro 51.0 Manufacturing and distribution of Nanchang Associate of (Jiangxi) million transmissions for passenger cars and City JMCG 7 Transmission light trucks and components for Company motorbikes and cars/trucks. Jiangxi Huaxiang Huang Pinhui RMB 40 Manufacturing and sales of automotive Nanchang Joint venture of Auto Components million components. City JMCG Co., Ltd. Jiangxi Jiangling Chang USD Design, manufacturing and sales of Nanchang Joint venture of Lear Interior Hongshun 10.215 automotive seats & foam. City JMCG System Co., Ltd. million Jiangxi JMCG Wu Xiaolin RMB 60 Manufacturing and sales of automotive Nanchang Associate of Specialty Vehicles million components and modified vehicles. City JMCG Corporation, Ltd. Hanon Systems In Young Lee USD $ 5.6 Manufacturing of climate control Nanchang Associate of (Nanchang) Co., million systems (excluding compressors), City JMC Ltd. refrigerant lines, brake lines and fuel tubes used for automobile. Nanchang Unistar Pan Xiaolin RMB 30 Auto wiring, development, Nanchang Joint venture of Electric & million manufacturing, sales and after-sales City JMCG Electronics Co., service of electronic parts. Ltd. Nanchang Fujiya Huang Pinhui USD $ 8 Development, production and sales of Nanchang Associate of Exhausting million automobile exhausting system. City JMCG Control Technical Co., Ltd. Changan Ford Zhang baolin USD $ 241 Development, production and sales of Chongqing Joint venture of Automobile Co., million automobiles and parts; provide City Changan Ltd. after-sales services, training services, Automobile warehousing services and other services. Co., Ltd. Nanchang Jiangping Tu RMB 35 Automotive mirrors and other Nanchang Associate of Meclans Auto million automotive parts products (except City JMCG Mirror Co., Ltd. engines) development, manufacturing, wholesale, retail and service. Jiangling Motor Zhang Baolin RMB 2000 Manufacture automobile, engine chassis, Nanchang Controlling Holdings Co., Ltd. million auto parts; sale products and provide City shareholder of after-sales service; industrial investment; the Company import and export of all kinds of goods (hold 41.03% and technologies. equity) Jiangxi Jiangling Zhang RMB 20 Design, manufacture and sales of refit Nanchang Associate of Group Special Renzhong million vehicles and auto parts for refrigerated County JMCG Vehicle Co., Ltd. trucks, power carts, postal vehicles, wreckers, truck-mounted cranes, and explosion-proof vehicles. Nanchang Hengou Xia Yingjie RMB 35 Mechanical processing; metal products, Nanchang Associate of Industry Co., Ltd. million paper processing, marketing. City JMCG Nanchang Yinlun Xu Xiaomin RMB 40 Development, production and sales of Nanchang Associate of 8 Heat-exchanger million automobile heat exchange system. City JMCG Co., Ltd. Jiangxi ISUZU Itou Kazuhiko RMB 950 Design, assembly and sales of engines Nanchang Joint venture of Engine Co., Ltd. million and spare parts; and import of related City JMCG technology and parts. Financial information of related parties in 2018 was shown as follows: RMB million No. Name Total Assets Net Assets Revenue Profit after tax 1 JMCG Finance Company 10,809 1,006 301 114 2 Ford Motor Finance (China) Co., Ltd. 38,733 6,094 1,552 773 3 Changan Auto Finance Co., Ltd. 36,822 6,923 3,459 747 4 JMCG 15,406 6,393 6,873 1,135 5 Ford Motor Company US$58,500 US$35,700 US$156,800 US$7,700 6 Jiangxi Jiangling Motors Imp. & Exp. 1,719 235 4,550 36 Co., Ltd. 7 Nanchang Baojiang Steel Processing 753 206 1,390 17 Distribution Co., Ltd 8 GETRAG (Jiangxi) Transmission 7,999 4,167 8,484 1,230 Company 9 Jiangxi Huaxiang Auto Components Co., 572 237 685 15 Ltd. 10 Jiangxi Jiangling Lear Interior System 400 183 615 26 Co., Ltd. 11 Jiangxi JMCG Specialty Vehicles 1,053 647 1,001 77 Corporation, Ltd. 12 Hanon Systems (Nanchang) Co., Ltd. 375 209 427 12 13 Nanchang Unistar Electric & Electronics 439 75 512 2 Co., Ltd. 14 Nanchang Fujiya Exhausting Control 335 121 407 20 Technical Co., Ltd. 15 Changan Ford Automobile Co., Ltd. 45,326* 8,439* 106,028* 12,171* 16 Nanchang Meclans Auto Mirror Co., Ltd. 147 94 148 9 17 Jiangling Motor Holdings Co., Ltd. 28,353 11,141 32,272 -762 18 Jiangxi Jiangling Group Special Vehicle 180 95 348 7 Co., Ltd. 9 19 Nanchang Hengou Industry Co., Ltd. 81 66 181 17 20 Nanchang Yinlun Heat-exchanger Co., 105 42 100 1 Ltd 21 Jiangxi ISUZU Engine Co., Ltd. 2,156 517 2,005 25 Note: * for 2017 data. Performance capability analysis: the above-mentioned relation parties can strictly abide by the contract agreement in their business dealings with the Company. Combined with the main financial indicators and business conditions of the related parties, the related parties are fully capable of performing their transactions with the Company. IV. Main Content of the Routine Related Party Transaction 1. Transaction Pricing Mechanism When the Company sells goods to or purchases goods from related parties, if the price of the same products is offered in the market, the Company will use the market price. If unable or difficult to obtain comparable market data for prices of unique products or services, prices are determined through the process of supplier quotes, costing assessment and negotiation. 2. Signing of Related Party Transaction Contracts According to the actual progress of production and operation, the Company will sign specific contracts in time on an equal basis with the related parties. V. Purpose of Related Party Transactions and Impact on JMC All the above-mentioned related party transactions are regular and recurring transactions between JMC and the related parties, and they are necessary for JMC to maintain its daily operation. The goods purchased from the related parties are mainly unique parts for JMC products. The transactions between JMC and the related parties follow the principles of fairness, openness and justice. All the transactions meet the requirements of relevant laws and regulations, which do not damage the benefit of the Company and shareholders. VI. Opinions from Independent Directors Independent Directors, Mr. Lu Song, Ms. Wang Kun and Mr. Li Xianjun, expressed their opinions on the above-mentioned routine related party transactions as follows: 1. We have been informed of the meeting agenda prior to the meeting; 2. We have known the routine related party transactions of the Company, and believe that the routine related party transaction forecast proposal is necessary and reasonable for the Company’s daily operation, and voting procedures of the proposal complies with the relevant requirements of the laws & regulations. 10 VII. Documents for Reference 1. Resolutions of the Board of Directors of JMC; 2. Opinions from Independent Directors on the abovementioned routine related party transactions. Board of Directors Jiangling Motors Corporation, Ltd. March 28, 2019 11