FAW intends to transfer 17.02% of the shares of FAW Jiefang to FAW Bestune for free.

         On December 22, FAW Jiefang issued an announcement stating that the controlling shareholder FAW will transfer 784.5 million shares (17.02% of the total issued shares) of the listed company that it holds to FAW Pentium, a wholly-owned subsidiary of FAW. .

         FAW Jiefang emphasized that after the completion of this transfer, the number of shares held directly and indirectly by FAW will remain unchanged. FAW directly holds 3.0606 billion shares of the listed company, and the remaining shares are held indirectly through FAW Pentium.

         FAW Jiefang was formerly known as FAW Car.

         FAW Jiefang's 2020 semi-annual report shows that in March last year, FAW Car disclosed a suspension announcement on planning a major asset restructuring, and initiated the purchase of Jiefang Co., Ltd. shares held by FAW by means of asset replacement and issuance of shares to purchase assets. The major asset reorganization was approved by the China Securities Regulatory Commission in March this year, and the transfer of 100% equity of Jiefang Co., Ltd. and the registration procedures for industrial and commercial changes were subsequently completed.

         FAW Jiefang Automobile Co., Ltd. became a wholly-owned subsidiary of the listed company, and the main business of the listed company was changed to the research and development, production and sales of complete commercial vehicles.

         In May of this year, FAW Car officially changed to FAW Jiefang Group Co., Ltd., and its registered capital increased by nearly 3 billion.

         At the end of October, FAW Jiefang released a report for the third quarter of 2020. During the reporting period, operating income was 97.73 billion yuan, an increase of 19.67% year-on-year; the net profit attributable to shareholders of listed companies was 2.651 billion yuan, an increase of 48.56% year-on-year. Among them, FAW Jiefang's net profit in the third quarter was 501 million yuan, which was profitable compared to the same period last year.

         FAW Jiefang said that the main reason for the increase in net profit compared with the reorganization was: Affected by the commercial vehicle industry market, the company achieved 341,000 medium and heavy truck sales during the reporting period, a year-on-year increase of 45.1%, and realized net profit growth.

         Zhou Lijun, an analyst at Bitauto Research Institute, believes that FAW Jiefang's sales increase is mainly due to two aspects: first, the rapid growth of my country's logistics industry; second, this year's epidemic has accelerated logistics development, further stimulating the truck and other commercial vehicle markets.