Share’s code： 000550 Share’s Name： Jiangling Motors No.： 2025－056

200550 Jiangling B

Jiangling Motors Corporation Ltd.Public Announcement on Y2026 Foreign Exchange Hedging Business

Jiangling Motors Corporation Ltd. and the members of its Supervisory Board

undertake that the information disclosed herein is truthful accurate and

complete and does not contain any false statement misrepresentation or major

omission.Important Content Tip:

1. Purpose of the transaction: for the purpose of hedging and avoiding exchange rate

risks reducing the risk of exchange rate fluctuations by locking in the exchange rate.Trading varieties: foreign exchange.Trading instrument: forward settlement.Trading venues: financial institutions approved by regulatory agencies and qualified

to operate foreign exchange derivatives trading business.Transaction amount: the quota of the forward foreign exchange transactions of

Jiangling Motors Corporation Ltd. (hereinafter referred to as “JMC” or “theCompany”) is US$ 50 million and Euro€ 8 million. The Company expects to use no

more than US$ 30 million and Euro€ 6 million in trading margin and rights fees

with a term of 2026. At any point within the year the trading amount shall not exceed

these quotas.

2. Deliberation procedures performed: the Company considered and approved the

Proposal on Y2026 Foreign Exchange Hedging Business in the Eleventh Session of

the Eleventh Board of Directors on December 19 2025. The proposal does not need

to be submitted to the shareholders' meeting for consideration.

3. Risk Warning: there are market risk liquidity risk credit risk operational risk and

legal risk in the process of business development and investors are advised to pay

attention to the investment risk.I. Overview of foreign exchange hedging business

1. Purpose of investment: in order to prevent exchange gains and losses from

adversely affecting the Company when there are large fluctuations in exchange rates

the company plans to carry out forward settlement and sale of foreign exchange

business with financial institutions. The Company does not engage in speculative

transactions and reduces the risk of exchange rate fluctuations by locking in the

exchange rate on the basis of normal production and operation and on the principle of

soundness with the purpose of hedging and avoiding exchange rate risks.

2. Transaction amount: the quota of the forward foreign exchange transactions of the

Company is US$ 50 million and Euro€ 8 million. The Company expects to use no

more than US$ 30 million and Euro€ 6 million in transaction margin and rights fees

1with a term of 2026. At any point within the year the trading amount shall not exceed

these quotas.

3. Trading places and methods: the Company's proposed foreign exchange hedging

business mainly consists of forward settlement and sale of foreign exchange and other

businesses. Trading venues are financial institutions approved by regulatory agencies

and qualified to operate foreign exchange derivatives trading business.

4. Transaction period: the year of 2026.

5. Source of funds: the Company's self-owned funds not involving the use of raised

funds or bank credit funds.

6. Feasibility analysis: the forward foreign exchange trading business is based on the

needs of daily business activities which is in line with the Company's requirements

for risk avoidance and prevention and complies with relevant national policies and

laws.II. Procedures for consideration of foreign exchange hedging operations

The Company considered and approved the Proposal on Y2026 Foreign Exchange

Hedging Business in the Eleventh Session of the Eleventh Board of Directors on

December 19 2025 which does not involve related party transactions and there is no

need to perform the review procedures for related party transactions. In accordance

with the relevant provisions of the Shenzhen Stock Exchange Self-Regulatory

Guidelines for Listed Companies No. 7 - Transactions and Related Party Transactions

(Revised in 2025) and other relevant regulations this proposal is not required to be

submitted to the Shareholders' Meeting for consideration.III. Risk Analysis and Risk Control Measures of the Foreign Exchange Hedging

Business

i. Risk analysis:

1. Market risk: in the case of large exchange rate fluctuations losses may arise from

the deviation of the exchange rate of the forward contract from the market spot rate on

the maturity date of the contract;

2. Liquidity risk: it may be due to inaccurate forecasts that the delivery date signed by

the forward is inconsistent with the actual delivery date resulting in insufficient funds

available for use at the time of delivery which triggers the risk of fund liquidity and

leads to failure to deliver as scheduled;

3. Credit risk: it may be due to inaccurate forecast the delivery date signed by the

forward is not consistent with the actual delivery period resulting in the risk of

delayed delivery caused by the forward foreign exchange transactions cannot be

delivered according to the agreed time;

4. Operational risk: the risk may be caused by imperfect internal control mechanism

2and improper operation mode of operators;

5. Legal risk: the Company may face legal risks due to insufficient completeness of

contract terms or disputes over jurisdictional terms.ii. Risk control measures:

1. The Company conducts forward foreign exchange transactions based on scientific

forecasts of forward foreign exchange demand in accordance with its business plan to

meet operational needs to avoid and prevent the impact of exchange rate fluctuations

on the Company and does not engage in speculative transactions;

2. With regard to the possible performance guarantee issues arising from foreign

exchange derivative transactions the business execution department of the Company

has established a tracking mechanism to implement tracking management of the

progress of business receipts and payments to effectively prevent the risk of default on

delivery and ensure that potential losses are controlled within the minimum scope;

3. Through strengthening the training of business knowledge the Company has

enhanced the comprehensive business quality of relevant personnel and improved the

ability to identify and prevent risks;

4. The Company has formulated the Foreign Exchange Risk Control Process and the

operators strictly follow the requirements of the system;

5. The Company chooses financial institutions with legitimate qualifications good

credit and long-term business relations with the Company as counterparties for

forward foreign exchange transactions with low risk of default.IV. Accounting policies and accounting principles

In accordance with the Ministry of Finance's Accounting Standard for Business

Enterprises (ASBE) No. 22 “Recognition and Measurement of Financial Instruments”

ASBE No. 24 “Hedge Accounting” ASBE No. 37 “Presentation of FinancialInstruments” and other relevant regulations and its guidelines the Company conducts

corresponding accounting treatments for the proposed forward foreign exchange

transactions to reflect relevant items on the balance sheet and income statement.V. Documents for reference

1. Resolutions of the Board of Directors of Jiangling Motors Corporation Ltd.;

2. Feasibility Analysis Report;

3. The Foreign Exchange Risk Control Process.

Board of Directors

Jiangling Motors Corporation Ltd.December 23 2025

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