Press Release

Equity –Non-public Offering –Non-public Offering of Beiqi Foton Motor Co.,Ltd. FCIB Acted as the Sole Sponsor and Lead Underwriter for Non-public Offering of Beiqi Foton Motor Co.,Ltd.

2022-09-09

Transaction Overview:

FCIB acted as sole sponsor and lead underwriter for Beiqi Foton Motor Co.,Ltd.(“Foton Motor” or “the company”)on its A-share non-public offering (“the deal”). On Sep. 2nd 2022, the newly-issued shares accomplished its initial registration and deposit in Shanghai Branch of China Securities Depository and Clearing Co., Ltd.

Foton Motor is a commercial vehicle manufacturing enterprise integrating research and development, production, sales and service, mainly engaged in the research and development, production and sales of the full series of commercial vehicles and powertrains such as light trucks, medium and heavy trucks, light buses and large and medium-sized buses. After more than 20 years of development, the company has become the domestic commercial vehicle product layout of the most complete, comprehensive strength of the automobile enterprise. In 2021, World Brand Lab released the list of China's 500 Most Valuable Brands, and Foton ranked first in the commercial vehicle industry with RMB180.83 billion, leading the commercial vehicle industry for many consecutive years.

The issuance of net funds raised RMB 2,993.42 million, will be fully used to supplement the working capital and repay debt. The object of this private offering is BAIC Group, the controlling shareholder of Foton Motor. On the one hand, it can strengthen the control of Foton Motor, which fully shows the controlling shareholder's support for the development of Foton Motor and confidence in its future prospects. On the other hand, it is beneficial to enhance the capital strength, meet the capital needs of operation and development, increase the stability and adequacy of working capital, enhance the ability to resist risks and market competitiveness by optimizing the capital structure as well as promote the sustainable and healthy development of Foton Motor itself.

Transaction Highlights:

This deal was officially accepted by CSRC on May 16, obtained unconditional without hearing approval on August 8, started to issue on August 26, completed the verification of capital payment on August 26, and registered new issued shares on September 2. This deal only takes three months also to complete which fully indicates FCIB team’s efficient executive ability and high quality of filing drafting skills with having been highly appreciated and affirmed by client.

 

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