On September 16, FAW Xiali released the "Report on the Sale of Major Assets and the Issuance of Shares to Purchase Assets and Raise Supporting Funds and Related Transactions", which clarified the specific plan for the reorganization, involving the free transfer of FAW Xiali shares and major assets held by FAW Shares.

There are four parts: selling, issuing shares to purchase assets and raising supporting funds.

It is reported that as of the signing date of the summary of this report, FAW Co., Ltd. holds 761,427,612 shares of FAW Xiali, with a shareholding ratio of 47.73%. It plans to transfer all the shares held to Tiewu Co., Ltd. for free.

In addition, FAW Xiali plans to issue shares to China Iron and Steel Co., Ltd., Wuhu Changmao, Structural Adjustment Fund, ICBC Investment, ABC Investment, Runnong Ruixing, and Eden Fund to purchase its total holdings of China Railway Wusheng Technology

100% equity of Tianjin Company and 100% equity of Wuzong Trading held by Tiewu Co., Ltd.

FAW Xiali plans to raise a total of supporting funds of no more than 1.6 billion yuan.

Regarding major asset restructuring, after FAW Xiali transfers all assets and liabilities it owns as of the valuation base date, except for the 17.5% equity interest in Xinan Insurance and the retained input tax, to Xiali Operations, FAW Xiali plans to sell Xiali Operations 100 to FAW Co., Ltd.

% equity and 17.5% equity of Xin'an Insurance. FAW Co., Ltd. designated FAW Assets as the successor. FAW Xiali will directly transfer 100% equity of Xiali Operations and 17.5% equity of Xin'an Insurance to FAW Assets.

In the first half of this year, FAW Xiali's operating income was 100.1 million yuan, a year-on-year decrease of 65.25%, and the net profit attributable to the parent company after non-compliance deductions was -243 million yuan.

At present, FAW Xiali no longer has production qualifications. At the beginning of this year, FAW Xiali transferred its production qualifications to the joint venture Tianjin Bojun. Tianjin Bojun entered a three-month shutdown state from August 1 and is seeking interested investors. If it goes out of business

If it fails to find investors at the expiration of the period, Tianjin Bojun will enter the dissolution and liquidation process.