Core Viewpoint - Jiangling Motors has signed a dealership service agreement with Ford Motor Sales and Service (Shanghai) Co., Ltd. to enhance its passenger vehicle business and plans to increase capital in its subsidiary Jiangling Ford Automotive Technology (Shanghai) Co., Ltd. with a total investment of 2.478 billion yuan [1][4]. Group 1: Related Party Transactions - Ford holds a 32% stake in Jiangling Motors, making it the second-largest shareholder, thus the dealership service authorization and capital increase constitute related party transactions [2]. - Jiangling Ford (Shanghai) was established in 2021 with a registered capital of 200 million yuan, and as of June 30, 2025, it had total assets of 8.753 billion yuan and total liabilities of 2.296 billion yuan [2]. Group 2: Dealership Service Agreement - The agreement covers Jiangling Ford brand vehicles, including localized Ford passenger cars and pickups, with Ford responsible for comprehensive dealership services in China [3]. - Jiangling Motors is expected to pay approximately 250 million to 300 million yuan annually to Ford for these dealership services [3]. Group 3: Capital Increase Details - Prior to the capital increase, Jiangling Motors had invested 102 million yuan in Jiangling Ford (Shanghai), holding a 51% stake, while Ford held 49% [4]. - The capital increase will involve Jiangling Motors converting 1.26378 billion yuan of debt into equity and Ford contributing 1.21422 billion yuan in cash, maintaining the existing shareholding structure [4]. Group 4: Transaction Purpose and Impact - The strategic upgrade of the dealer network and unified marketing management by Ford aims to enhance sales of Ford brand vehicles [6]. - The capital increase and debt restructuring are expected to have no impact on the overall profit of Jiangling Motors [6]. Group 5: Related Transactions Summary - From the beginning of the year to the end of August, Jiangling Motors and Ford have engaged in related transactions totaling approximately 210 million yuan [7].