Gelonhui, December 29, 丨 Xiangshan Co., Ltd. (002870.SZ) announced that on December 29, 2022, the company held the 13th meeting of the 5th board of directors and the 12th meeting of the 5th board of supervisors to deliberate and pass the “Proposal on Terminating Issuance of Shares to Purchase Assets and Raise Supporting Funds and Related Transactions”, and decided to terminate the transaction of purchasing no more than 17% of Ningbo Junsheng Qunying Automobile Systems Co., Ltd. (“Junsheng Qunying”) from the counterparty Ningbo Junsheng Electronics Co., Ltd. (“Junsheng Qunying”).

Since the planning of this major asset restructuring matter, the company has strictly followed the requirements of relevant laws and regulations, actively organized all parties concerned to advance the various tasks of this transaction, hired intermediaries such as auditors, evaluation agencies, law firms, independent financial advisors and other intermediaries to carry out due diligence, audit, evaluation, etc., and conducted many rounds of consultations, repeated communication and careful verification with counterparties and intermediaries of all parties on the issues involved in this transaction plan. However, due diligence, audit, and evaluation work related to transactions took a long time due diligence, audit, and evaluation work related to the transaction; given recent changes in the external market, according to the current audit progress, it is expected that it will be difficult for the company to complete the reporting work as planned within the validity period of the financial report. Based on the purpose of safeguarding the interests of the company and investors, improving transaction efficiency, and reducing transaction costs, it was decided to terminate this restructuring matter after careful study by the company and friendly negotiations with the counterparty, taking into account factors such as the company's development plan and capital market environment.

The acquisition of the remaining shares in Junsheng Qunying is an important step in the company's future strategic layout. The company will restart related acquisitions as soon as possible at a more appropriate time.