Annual Report 2024

1. Board of Directors (the "Board"), Board of Supervisors, directors, supervisors and senior management of the Company certify that this report does not contain any false or misleading statements or material omissions and are jointly and severally liable for the authenticity, accuracy and integrity of the content.
2. All directors of the Company attended Board meetings.
3. PricewaterhouseCoopers Zhong Tian LLP issued a standard and unqualified auditors' report to the Company.
4. Mr. Wang Xiao Qiu, Chairman of the Board, Mr. Wei Yong, the chief financial officer, and Ms. Xie Wei, head of Accounting Department, certify the authenticity, accuracy and integrity of the financial reports contained in the Annual Report of the current year.
5. Profit distribution plan or plan for converting reserve into share capital resolved by the Board for the reporting period

   On the basis of the total share capital of 11,575,299,445 shares minus 150,410,234 shares in the Company's special account for share repurchase as at the disclosure date of this report, that is, 11,424,889,211 shares, the Company plans to distribute cash dividends of RMB 0.88 (inclusive of tax) per 10 shares, totalling RMB 1,005,390,250.57. No capital reserve was converted into share capital. If, during the period between the disclosure date of this report and the registration date of the equity allocation, the number of shares on the basis of which the Company is entitled to distribute profits changes due to situations such as share repurchase, the total amount of the profit distribution remains unchanged and the amount allocated per share is adjusted accordingly.

6. Risk statement of forward-looking description

   "√ Applicable" "□ NA"

   Forward-looking description in this report, such as future plans and development strategies, does not constitute any substantive commitment of the Company to investors. Investors are hereby reminded of investment risks.

7. Does the situation exist where the controlling shareholders and other related parties occupy the funds of the Company for non-operational use?

   No

8. Does the situation exist where the external guarantee is provided which is not in compliance with the required decision-making procedures?

   No

9. Are over 1/2 of directors not able to ensure the authenticity, accuracy and integrity of the Annual Report disclosed by the Company?

   No

10. Significant risk alert

    There are no significant risks which have substantive effects on the Company's production and operation during the reporting period. The Company has described the possible risks that the Company may be exposed to in the process of production and operation in this report. Please refer to "Possible Risks" in Section III Management Discussion and Analysis.

11. Others

□Applicable √N/A

Section I Definition 4

Section II General Information and Major Financial Indicators of the Company 4

Section III Management Discussion and Analysis 8

In this report, unless the context otherwise indicated, the following terms are defined as below:

1. Information of the Company

   Name of the Company in Chinese	上海汽车集团股份有限公司
   Abbreviation of the Company in Chinese	上汽集团
   Name of the Company in English	SAIC Motor Corporation Limited
   Abbreviation of the Company in English	SAIC Motor

   Legal representative of the Company

   Mr. Wang Xiao Qiu

2. Contacts

   	Secretary of the Board	Securities affairs representative
   Name	Mr. Chen Xun	Mr. Lu Xiaolong
   Address	No. 489, Weihai Road, Jing'an District, Shanghai, China	No. 489, Weihai Road, Jing'an District, Shanghai, China
   Telephone	(021) 22011138	(021) 22011138
   Fax	(021) 22011777	(021) 22011777
   E-mail	saicmotor@saic.com.cn	saicmotor@saic.com.cn

3. General information of the Company

   Registered address	Room 509, No.1 Tower, No. 563 Songtao Road, Pilot Free Trade Zone, Shanghai, China
   Changes in registered address	No change during the reporting period
   Office address	No. 489, Weihai Road, Jing'an District, Shanghai, China
   Post code of office address	200041
   Website	https://http://www.saicmotor.com
   E-mail	saicmotor@saic.com.cn

4. Information disclosure and where the information is available

   Media and website for disclosure of the Company's Annual Report	Shanghai Securities News, China Securities Journal and Securities Times
   CSRC website for disclosure of the Company's Annual Report	https://http://www.sse.com.cn
   Location where the Company's Annual Report is available	Office of the Board

5. Profile of the Company's shares

   Profile of the Company's shares
   Class of shares	Stock exchange	Short name	Stock code	Former short name
   A shares	Shanghai Stock Exchange	SAIC Motor	600104	Shanghai Automotive

6. Other relevant information

   Information of the accounting firm engaged by the Company (domestic)	Name	PricewaterhouseCoopers Zhong Tian LLP
   	Office address	42nd F, Qiantan Centre, No. 588, Dongyu Road, Pudong New Area, Shanghai
   	Signing CPA	Zhuang Hao and Shen Zhe

7. Major accounting data and financial indicators in recent three years
   1. Major accounting data

      Unit: RMB

      Major accounting data	2024	2023	Changes (%)	2022
      Total revenue	627,589,946,567.69	744,705,132,922.20	-15.73	744,062,883,284.04
      Total revenue after deducting revenue unrelated to main operations and revenue without commercial substance	610,884,381,226.05	729,626,954,771.34	-16.27	726,441,343,975.98

      Revenue	614,074,061,818.13	726,199,110,369.74	-15.44	720,987,528,302.03
      Net profit attributable to shareholders of listed companies	1,666,376,761.07	14,106,165,142.98	-88.19	16,117,549,650.39
      Net profit attributable to shareholders of listed companies after deducting non-recurring profit or loss	-5,409,062,450.09	10,044,669,854.90	-153.85	8,991,524,863.70
      Net cash flows from operating activities	69,267,789,561.24	42,334,422,535.36	63.62	9,504,540,284.51
      	31 December 2024	31 December 2023	Changes (%)	31 December 2022
      Net assets attributable to shareholders of listed companies	287,840,094,973.12	286,318,745,625.95	0.53	279,233,525,947.44
      Total assets	957,143,417,731.69	1,006,650,278,661.54	-4.92	990,107,381,169.76

   2. Major financial indicators

      Major financial indicators	2024	2023	Changes (%)	2022
      Basic earnings per share (RMB/Share)	0.145	1.226	-88.17	1.400
      Diluted earnings per share (RMB/Share)	Not applicable	Not applicable	Not applicable	1.400
      Basic earnings per share after deducting non-recurring profit or loss (RMB/Share)	-0.472	0.873	-154.07	0.781
      Weighted average ROE (%)	0.58	4.98	Decreased by 4.40 pct	5.84
      Weighted average ROE after deducting non-recurring profit or loss (%)	-1.88	3.55	Decreased by 5.43 pct	3.26

      Explanation on major accounting data and financial indicators at the end of the recent three reporting periods

      √Applicable □NA

      1. In 2024, the Company's net profit attributable to shareholders of listed companies, net profit attributable to shareholders of listed companies after deducting non-recurring profit or loss, basic earnings per share, basic earnings per share after deducting non-recurring profit or loss decreased year on year, mainly due to following reasons:

         1. In 2024, the Company's sales of vehicles decreased year-on-year, and the Company's sales revenue and gross profit decreased under the impact of the price war.

         2. The Company's joint venture, Shanghai General Motors Co., Ltd. ("SGM"), and its holding subsidiaries made provision for asset impairment in the fourth quarter of 2024, resulting in a significant year-on-year decrease in the Company's investment income.

         3. In 2024, the Company completed the equity transfer as well as capital increase and share expansion of MG Motor India Pvt. Ltd. (now renamed JSW MG Motor India Private Limited). The Company accounted for it using the equity method, and the non-recurring profit or loss increased significantly year-on-year.

      2. Net cash flows from operating activities increased year-on-year, mainly due to the moderate adjustment of the loan scale by the Company's subsidiary, SFC, according to business needs, and the increases in net cash flows from operating activities in manufacturing business that the Company realized by enhancing the retail business, reducing inventory and strengthening fund management.

8. Differences in accounting data under China and foreign accounting standards
   1. Differences in net profit and net assets attributable to shareholders of the listed companies where financial statements are disclosed in accordance with International Accounting Standards ("IAS") and China Accounting Standards ("CAS")

      □Applicable √N/A

   2. Differences in net profit and net assets attributable to shareholders of the listed companies where financial statements are disclosed in accordance with foreign accounting standards and CAS

      □Applicable √N/A

   3. Explanation on differences between China and foreign accounting standards

   □Applicable √N/A

9. Major quarterly financial data for the year 2024

   Unit: RMB

   	Q1 (Jan. to Mar.)	Q2 (Apr. to Jun.)	Q3 (Jul. to Sept.)	Q4 (Oct. to Dec.)
   Total revenue	143,071,708,275.23	141,614,319,767.04	145,796,221,308.58	197,107,697,216.84
   Revenue	138,983,857,352.30	138,101,674,289.89	142,560,534,690.79	194,427,995,485.15
   Net profit attributable to shareholders of listed companies	2,713,786,027.03	3,913,953,589.00	279,690,120.60	-5,241,052,975.56
   Net profit attributable to shareholders of listed companies after deducting non-recurring profit or loss	2,120,629,636.70	-1,100,195,379.38	29,166,137.16	-6,458,662,844.57
   Net cash flows from operating activities	-4,546,142,477.94	15,863,016,190.23	7,373,983,866.12	50,576,931,982.83

   Explanation on differences between above quarterly data and disclosed data in periodic reports

   □Applicable √N/A

10. Items and amounts of non-recurring profit or loss

    √Applicable □N/A

    Unit: RMB

    Items of non-recurring profit or loss	2024	Note (if applicable)	2023	2022
    Gains or losses on the disposals of non-current assets, including the written-off portion of the provision for impairment of assets	5,189,304,793.38		1,472,863,302.37	2,861,927,027.00
    Government grants recognized in profit or loss, other than those that are closely related to the Company's ordinary course of business, are in accordance with national policies and regulations, are received in accordance with established standards and have a sustained impact on the Company's profit or loss.	2,705,134,842.06		4,050,408,635.29	3,659,334,808.82
    Non-recurring profit or loss of joint ventures	945,694,163.32
    Profit or loss arising from changes in fair value of financial assets and financial liabilities held by non-financial enterprises and from disposals of financial assets and financial liabilities, except for effective hedging business related to the Company's ordinary course of business	52,048,625.43		46,310,347.47	-50,208,898.51
    Income from investments in other equity instruments	25,195,075.91		7,989,798.56	8,479,952.60
    Profit or loss on entrusted loans	23,176,735.26		22,238,945.89	22,724,343.34
    Reversal of provision for impairment of receivables tested for impairment on an individual basis	113,633,333.38		25,611,883.02	31,340,053.18
    Income from the difference between the investment costs of acquisition of	193,728,098.48			993,558,775.01

    subsidiaries, associates and joint ventures and share in the net fair value of the identifiable assets of the investee when investing
    Profit or loss on debt restructuring	7,034,313.53			-751,177.33
    Other non-operating income and expenses other than the above	-114,553,712.75		-220,484,566.39	995,512,062.69
    Less: Effect of income tax	1,670,456,221.76		580,163,559.94	639,137,781.42
    Effect of minority interests (net of tax)	394,500,835.08		763,279,498.19	756,754,378.69
    Total	7,075,439,211.16		4,061,495,288.08	7,126,024,786.69

    The Company shall explain about the recognition of non-recurring profit or loss that are not listed in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 Non-recurring Profit or Loss as non-recurring profit or loss with significant amounts and the recognition of non-recurring profit or loss listed in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 Non-recurring Profit or Loss as recurring profit or loss.

    □Applicable √N/A

11. Items measured at fair value

    √Applicable □N/A

    Unit: RMB

    Items	Opening balance	Ending balance	Changes	Effect on profits of 2023
    Financial assets held for trading	46,687,571,217.37	62,278,094,659.45	15,590,523,442.08	1,861,065,356.50
    Financing receivables	16,717,326,180.65	14,978,554,937.76	-1,738,771,242.89
    Other current assets -Interbank deposits	47,847,818,204.10	26,754,653,300.00	-21,093,164,904.10
    Other debt investments	4,569,999,800.00	627,084,958.34	-3,942,914,841.66
    Investments in other equity instruments	13,713,232,621.62	18,265,078,591.61	4,551,845,969.99
    Other non-current financial assets	22,775,688,309.19	26,546,676,077.58	3,770,987,768.39	495,413,070.52
    Financial liabilities held for trading	50,226,585.32	14,769,175.60	-35,457,409.72	-956,847.29
    Other non-current liabilities	100,000,000.00	100,000,000.00
    Total	152,461,862,918.25	149,564,911,700.34	-2,896,951,217.91	2,355,521,579.73

12. Others

□Applicable √N/A

1. Discussion and Analysis of Operations

   In 2024, in the face of the complex and severe challenges of "internal competition and external pressure" in the market, the Company actively adjusted strategies and proactively sought changes. Through the implementation of comprehensive deepening of reforms, the Company accelerated structural adjustment, striving to seize opportunities and overcome crises and enhance operational resilience. The Company achieved wholesale of total 4.013 million vehicles and terminal retail sales of total 4.639 million vehicles throughout the year. Among them, the retail sales of self-owned brands reached 2.741 million vehicles, accounting for nearly 60% of the Company's total sales, an increase of approximately 5 pct compared with 2023. The retail sales of new energy vehicles reached 1.368 million vehicles, increasing by nearly 30% year-on-year and setting a new historical high. Despite the pressure, the overseas market achieved retail sales of 1.082 million vehicles, a year-on-year increase of 2.6%, maintaining a steady

   growth momentum and taking a solid first step towards achieving the reform goal of "bottoming out, stabilizing, recovering and accelerating".

   1. Restructure the large passenger vehicle segment to focus on the new development of self-owned brands. "SAIC vehicles are always top-notch choices." The large passenger vehicle segment shoulders the responsibility of being the main force in SAIC's reform efforts and taking the lead in breaking through. During the reporting period, Roewe and Rising completed brand integration and promoted the construction of an integrated network. They successively released Roewe D5X DMH and iMAX8 DMH, further improving the layout of plug-in hybrid products. MG strengthened key marketing initiatives for products such as MG ES5 and the new MG7, accelerating the enhancement of brand reputation. Zhiji Auto released intelligent digital chassis technology, launched the NOA for urban driving assistance nationwide, and released new L6 and retrofit LS6 products. SAIC GM launched Wuling Xingguang S and produced the 2,000,000th new energy product of Wuling, further consolidating its position as a market leader in the segment. SAIC MAXUS released MAXUS Xingji X, ushering in a new era of pickup off-road.

   2. Leverage the technological advantages of the new track to open up a new prospect for joint ventures. SAIC Volkswagen accelerated the efficiency and intelligent upgrading of fuel vehicles, relying on the ID. family smart model to continuously enhance the product visibility and sales of the Volkswagen brand. SAIC Audi strengthened the synergy of its technological advantages and released the AUDI brand concept car, introducing a brand-new localized development cooperation model. With local development resources, SAIC GM adjusted the project planning and implemented the intelligent connection plan. Driven by the continuous hot sales of the Buick GL8 family and the refreshed launch of the new-generation Cadillac XT5, sales gradually bottomed out and stabilized.

   3. Consolidate overseas business base and continuously explore new global markets. The Company's overseas businesses actively responded to the adverse impacts of EU anti-subsidy investigations. Through measures such as the rush transportation of new vehicles and the introduction of HEV models, sales in the European market exceeded 240,000 vehicles, setting a new historical record. Meanwhile, the Company continued to strengthen the brand building by organizing events such as Return to Goodwood Festival of Speed in the United Kingdom to celebrate the centenary birthday of MG brand. The Company also actively expanded new markets such as South Africa, launched cooperation with local Egyptian companies in local production, and continued to promote the upgrading of overseas models.

   4. Deepen the reform of the marketing system to improve the new efficiency of traffic conversion. The Company established a regular monitoring mechanism to analyze the traffic performance of each brand and make suggestions for improvement. Vehicle companies completed the building of the new media marketing system, and established the livestream matrix of "headquarters, regions and distributors", pushing forward the construction of a new media content center, customer acquisition center and conversion center. The volume of voice and interaction among brands and the conversion rate of new media leads continued to increase throughout the year.

   5. Strengthen the synergy and empowerment of the industrial chain to build a new ecosystem for transformation and development. Focusing on the new track, the auto parts and components segment accelerated the upgrading of technical capabilities and expanded the development of new markets. Through measures such as building digital and intelligent capabilities, the segment tracked changes in user demands, strengthened penetrating control, and effectively enhanced the cost competitiveness and risk resistance of the entire chain. The finance segment actively practiced the concept of "industry-finance integration", supported the sales of vehicles from multiple fields, and empowered the layout of the forward-looking vehicle technology through industrial and financial investments. During the reporting period, six previously invested enterprises, including Horizon Robotics, successfully went public. The mobility and services segment accelerated the internal business streamlining and integration, and improved the operation of innovative businesses, further enhancing the empowerment and synergy effect of the vehicle business as the main operation.

2. Industry in which the Company operates during the reporting period

   In 2024, the production and sales of China's automotive industry continued to show a steady and positive trend. According to data from the China Association of Automobile Manufacturers, the cumulative production and sales of the automotive industry for the whole year reached 31.282 million and 31.436 million vehicles respectively, increasing by 3.7% and 4.5% year-on-year. Although the production and sales scale reached a new high, the recovery pace of the domestic market was relatively

   lagging behind, with a year-on-year growth of 1.6%. Domestic sales were still approximately 2.41 million vehicles lower than the peak in 2017. Against the backdrop of intensified "intra-industry competition" in the domestic auto market and increased "external pressure" from international trade protection, the competitive landscape of China's auto industry was undergoing profound changes:

   First, the effect of policy pull was remarkable. In 2024, the number of vehicles traded in for new ones across the country exceeded 6.8 million, driving an increase of approximately 2.4 million. In addition, the implementation of favorable policies such as the removal of the upper limit on car loans and the relaxation of driving and purchase restrictions in many places jointly contributed to the recovery of the passenger vehicle market starting from the second half of the year, effectively boosting the overall growth of the industry. The commercial vehicle market was constrained by factors such as investment, freight rates and domestic demand, with production and sales declining by 5.8% and 3.9% respectively year-on-year.

   Second, the penetration of new energy vehicles accelerated. In 2024, the penetration rate of new energy vehicles in China exceeded 40%, representing an increase of nearly 10 pct over the previous year, with the growth rate of plug-in hybrid vehicles exceeding 80%, becoming a new driving force behind the growth of new energy vehicles. The sales growth of new energy vehicles in third-tier and lower-tier cities was significantly faster than that of first-tier and second-tier cities, indicating that the penetration of new energy vehicles was accelerating in the lower-tier markets.

   Third, self-owned brands continued to rise. In 2024, the domestic market share of self-owned brands stabilized above 60%. And thanks to the rapid application of electric and intelligent technologies in vehicles, the average selling price of self-owned brand products increased by more than 30% compared to five years ago. Meanwhile, self-owned brand automakers were accelerating their "going global" efforts, and the new trend of "domestication of international competition" was becoming increasingly evident.

   Fourth, the price war squeezed the industry's profits. In 2024, the domestic auto market saw a cumulative price decline of nearly 8%. Although the price drop was narrowed compared to that of over 10% in 2023, its impact on industry profits further intensified. According to the data of the National Bureau of Statistics, in 2024, the profit margin of China's automobile industry decreased by 8% year-on-year, to only 4.3%, which was less than half that 10 years ago. The vehicle industry and its upstream and downstream industrial chains were all facing the severe challenge of a significant reduction in profit margins, leading to an accelerated reshuffle in the industry.

3. Businesses engaged by the Company during the reporting period

   During the reporting period, in the face of profound changes in the industry landscape and severe challenges in the market situation, the Company took active measures to "enhance retail, adjust structure, reduce inventory". Since the second half of the year, sales was increasing month by month, and the business showed a trend of bottoming out and stabilizing. In addition, the Company initiated and implemented comprehensive deepening of reform to "strengthen impetus, increase vitality and promote transformation", forging ahead resolutely in the face of difficulties and tempering resilience through adjustments.

   Firstly, join hands to accelerate the development of self-owned brand passenger vehicles. The Company established the "large passenger vehicle segment" based on the main direction of self-owned brands, and implemented integrated management for enterprises such as the Passenger Vehicle Branch, SAIC International, SRIH, Z-one Tech, and Overseas Mobility. The existing organizational structure was streamlined and integrated in a platform-based and flat manner to improve operational efficiency. At the same time, measures such as standardizing categorization planning, optimizing development process and enhancing product definition were taken to improve management tools in all aspects of product development, and overall performance assessment was conducted to drive relevant enterprises to enhance collaboration and create synergy based on segment performance.

   Secondly, focus on the main operation and refine the business system to drive downsizing and capability building. In terms of the vehicle business, based on the current sales volume scale, SAIC Volkswagen and SAIC GM implemented production layout adjustments, capacity reduction and organizational streamlining. Roewe and Rising deeply integrated and comprehensively consolidated the functions of the middle and back offices. While orderly withdrawing from its directly-operated stores, SAIC MAXUS concentrated resources with Nanvico to expand the wide-body light commercial vehicle market and completed the pilot program of integrating marketing channels in 19 cities including Nanjing and

   Wuxi. In other businesses, the Company withdrew from the black cast parts business and inter-city small parts express business, and integrated the car finance leasing business.

   Thirdly, expand cooperation to promote high-level opening-up and cross-field cooperation. On the occasion of the 40th anniversary of QVW, both shareholders extended the joint venture period to 2040, and jointly launched the brand "AUDI" with Audi to exploit their respective advantages and explore the Chinese market. SAIC Anji Logistics introduced COSCO Shipping Holdings and SIPG as strategic investors to jointly build a "national team" for automotive roll-on/roll-off operations and intensify efforts to expand overseas markets. The Company also joined forces with leading ICT enterprises to carry out all-round cooperation around the passenger vehicle business in areas such as joint product development, new retail of vehicles, and user operation.

   Fourthly, enhance capabilities and accelerate the implementation and application of forward-looking innovative technology. The Company continued to promote the development and industrialization of new technologies such as solid batteries, full-stack electronic architecture and digital chassis. SAIC became the only domestic vehicle group in China whose passenger and commercial vehicles had both been shortlisted for the first batch of intelligent connected vehicles (ICVs) included in the pilot program for the access and on-road passage of ICVs. Taking this as an opportunity, the Company accelerated the testing and application of advanced intelligent driving technologies. Robotaxi obtained test licenses for urban roads and elevated expressways, and the "end-to-end" large model completed phased development work. The L4-level intelligent driving container truck achieved commercial operation in the Port of Chamkai, Peru. The Company also established an innovation consortium for the all-solid battery industry with a number of universities, and promoted the localization of chips in an integrated manner to continuously improve the application rate of domestic chips.

   Fifthly, strengthen the team and deepen the market-oriented personnel management reform for cadres. The Company formulated the Opinions on the Implementation of Competitive Recruitment for Cadres, and completed competitive recruitment for a total of 212 cadre positions in 16 enterprises. Outstanding young cadres were selected for temporary positions that were inclined towards key businesses such as self-owned brand passenger vehicles and overseas market expansion. In addition, the Company refined the assessment plan for enterprises and leading cadres with a performance orientation. The weight of "market and profit" indicators was further increased, and more emphasis was put on the measurability of indicators. The Company also carried out a special recruitment campaign of "100 Candidates in 100 Days", and strengthened the construction of a leading talent team through overseas recruitment and cooperation with universities.

4. Analysis on core competitiveness during the reporting period

   √Applicable □N/A

   First, the profound background of the industrial chain system. Being among the first batch of automotive groups to embark on "joint venture car manufacturing" after China's reform and opening up, the Company has established a complete and reliable R&D, manufacturing and marketing system. The Company stands out not only for a strong supply chain system guarantee, user base, distribution network and auto finance service support capabilities in China, but also for being the first to exploit oversea market with its complete and scaled auto industry chain. Through continuous improvement of the layout of overseas vehicle manufacturing bases, the Company has established over 2,000 marketing and service outlets, providing high-quality, diverse and sustainable products and services to consumers in more than 100 countries and regions around the world.

   Second, the leading technological layout in the innovation chain. The Company has cumulatively invested over RMB 150 billion in the fields of electrification and intelligence, obtaining nearly 26,000 valid patents covering the three major vehicle platforms, i.e. pure electric, hybrid, and hydrogen energy, as well as the "seven technology bases", i.e. battery, electric drive, super hybrid system (SHS), and intelligent vehicle full-stack solutions. The Company has been the first to achieve mass production and installation of the first-generation solid battery, the "Galaxy" full-stack intelligent vehicle solution, and the vehicle central coordinated motion control platform (VMC), among other industry-leading technologies. The Company is also deeply promoting the collaborative development of "algorithm + software + chip" and the application of new technologies such as AI large models in vehicles.

   Third, the open cooperation in ecological chain resources. The Company has always adhered to the principle of open cooperation and win-win development, focusing on high-end, intelligent and green development directions. In areas such as the construction of the new energy industry chain, the research

   and application of intelligent vehicles, artificial intelligence algorithms, chip design and manufacturing, network and data security, and the digital industrial ecosystem, the Company has joined hands with global partners to continuously expand new cooperation spaces in broader fields, at higher levels and in deeper dimensions. The purpose is to continuously enhance the resilience of the industrial and supply chains, jointly build a new industrial ecosystem, and collaboratively promote the high-quality development of the automotive industry.

5. Operations in the reporting period

   During the reporting period, the Company achieved total revenue of RMB 627.59 billion, a decrease of 15.73% year-on-year, net profit attributable to shareholders of listed companies of RMB 1.666 billion, a decrease of 88.19% year-on-year, and weighted average ROE of 0.58%, a decrease of 4.40 pct compared with the previous year.

   1. Analysis on main operations
      1. Analysis on changes in relevant accounts in income statement and cash flow statement

         Unit: RMB

         Accounts	2024	2023	Changes (%)
         Revenue	614,074,061,818.13	726,199,110,369.74	-15.44
         Cost of sales	556,450,036,686.44	657,301,172,463.53	-15.34
         Selling expenses	20,080,258,315.83	24,784,563,685.16	-18.98
         Administrative expenses	21,108,125,732.22	24,240,271,451.56	-12.92
         Financial expenses	3,054,077,070.48	-156,683,993.96	2,049.20
         R&D expenses	17,649,893,105.21	18,365,413,289.29	-3.90
         Investment income	7,177,645,440.57	14,949,316,107.84	-51.99
         Profit from changes in fair value	2,355,521,579.73	973,550,991.37	141.95
         Gains on disposals of assets	368,837,183.06	1,275,556,931.52	-71.08
         Non-operating income	699,208,560.02	523,974,302.21	33.44
         Net cash flows from operating activities	69,267,789,561.24	42,334,422,535.36	63.62
         Net cash flows from investing activities	-3,503,392,907.79	-42,233,896,179.71	Not applicable
         Net cash flows from financing activities	-9,312,171,110.35	-10,058,382,110.52	Not applicable

         Explanation on changes in financial expenses: Mainly due to the increase in exchange losses as a result of the impact of market exchange rates.

         Explanation on changes in net cash flows from operating activities: Mainly due to the moderate adjustment of the loan scale by the Company's subsidiary, SFC, according to business needs, and the increases in net cash flows from operation activities in manufacturing business that the Company realized by enhancing the retail business, reducing inventory and strengthening fund management.

         Explanation on changes in net cash flows from investing activities: Mainly due to the adjustment of the allocation of financial assets by the Company's subsidiary, SFC, based on the liquidity requirements for the year, and the cash paid for investments has a year-on-year decrease.

         Explanation on changes in investment income: Mainly due to the year-on-year decrease in investment income from the Company's associates such as SAIC GM.

         Reasons for changes in profit from changes in fair value: Mainly due to the year-on-year increase in the fair value of financial assets, including stocks and funds, held by subsidiaries of the Company.

         Reasons for changes in gains on disposals of assets: Mainly due to the year-on-year decrease in gains on disposals of intangible assets.

         Reasons for changes in non-operating income: Mainly due to the income from business combinations involving subsidiaries of the Company in the current year.

         Details of significant changes in business type, composition or sources of profit of the Company in the current period

         □Applicable √N/A

      2. Income and cost analysis

         √Applicable □N/A

         The details are as follows:

         1. Analysis on main operations by industry, product, geographical region and sales mode

            Unit: RMB

            Main operations by industry
            By industry	Revenue	Cost of sales	Gross margin ratio (%)	Changes in revenue (%)	Changes in cost of sales (%)	Changes in gross margin ratio (%)
            Auto manufacturing	614,074,061,818.13	556,450,036,686.44	9.38	-15.44	-15.34	Decreased by 0.11 pct
            Finance	13,515,884,749.56	2,006,973,587.57	85.15	-26.96	-25.37	Decreased by 0.32 pct
            Total	627,589,946,567.69	558,457,010,274.01	11.02	-15.73	-15.38	Decreased by 0.36 pct
            Main operations by product
            By product	Revenue	Cost of sales	Gross margin ratio (%)	Changes in revenue (%)	Changes in cost of sales (%)	Changes in gross margin ratio (%)
            Vehicles	381,262,343,730.33	366,534,174,722.96	3.86	-24.56	-23.74	Decreased by 1.03 pct
            Auto parts	190,675,933,362.83	156,532,375,412.29	17.91	4.26	5.88	Decreased by 1.25 pct
            Service trade and others	42,135,784,724.97	33,383,486,551.19	20.77	11.02	15.84	Decreased by 3.30 pct
            Finance	13,515,884,749.56	2,006,973,587.57	85.15	-26.96	-25.37	Decreased by 0.32 pct
            Total	627,589,946,567.69	558,457,010,274.01	11.02	-15.73	-15.38	Decreased by 0.36 pct
            Main operations by region
            By region	Revenue	Cost of sales	Gross margin ratio (%)	Changes in revenue (%)	Changes in cost of sales (%)	Changes in gross margin ratio (%)
            China	528,928,535,250.52	463,776,211,140.61	12.32	-16.40	-16.44	Increased by 0.05 pct
            Others	98,661,411,317.17	94,680,799,133.40	4.03	-11.94	-9.81	Decreased by 2.27 pct
            Total	627,589,946,567.69	558,457,010,274.01	11.02	-15.73	-15.38	Decreased by 0.36 pct

         2. Analysis on production and sales

            √Applicable □N/A

            Main products	Unit	Production	Sales	Inventories	Changes in production (%)	Changes in sales (%)	Changes in inventories (%)
            SAIC Volkswagen Automotive Co., Ltd.	Vehicles	1,147,257	1,148,091	14,197	-4.56	-5.51	-6.35
            SAIC General Motors Co., Ltd.	Vehicles	421,725	435,007	11,987	-58.58	-56.54	-52.63
            SAIC Motor Corporation Limited Passenger Vehicle Branch	Vehicles	707,371	707,015	11,760	-28.47	-28.30	-0.03
            SAIC GM Wuling Co., Ltd.	Vehicles	1,352,135	1,340,066	34,322	-3.71	-4.49	54.28
            SAIC MAXUS Vehicle Co., Ltd.	Vehicles	180,277	177,629	12,750	-20.61	-21.63	26.21
            IM Motors Co., Ltd.	Vehicles	65,393	65,503	513	70.11	71.24	-64.72
            SAIC Motor CP Co., Ltd.	Vehicles	22,069	25,950	5,253	10.30	16.84	-14.43
            SAIC-GM-Wuling Motor Indonesia	Vehicles	23,790	24,244	1,618	-7.51	-3.28	-22.06
            JSW MG Motor India Private Limited	Vehicles	58,968	59,439	1,278	-3.34	-4.15	-27.71
            Others	Vehicles	28,867	30,056	1,332	-27.27	-27.68	-16.96
            Total	Vehicles	4,007,852	4,013,000	95,010	-20.25	-20.07	-2.67

            Explanation on production and sales

            Others mainly include Shanghai Sunwin Bus Co., Ltd., SAIC HONGYAN Automobile Co., Ltd. and Nanjing Iveco Automobile Co., Ltd.

         3. Implementation of significant purchase and sales contracts

            □Applicable √N/A

         4. Cost analysis

            Unit: RMB

            By industry
            By industry	Cost items	Amount in the current period	Proportion to total costs (%)	Amount in the prior period	Proportion to total costs (%)	Changes (%)
            Auto manufacturing	Raw materials, labor salaries and wages, depreciation, energy, etc.	556,450,036,686.44	99.64	657,301,172,463.53	99.59	-15.34
            Finance	Labor wages, depreciation, energy, etc.	2,006,973,587.57	0.36	2,689,301,717.27	0.41	-25.37
            Total		558,457,010,274.01	100.00	659,990,474,180.80	100.00	-15.38
            By product
            By product	Cost items	Amount in the current period	Proportion to total costs (%)	Amount in the prior period	Proportion to total costs (%)	Changes (%)
            Vehicles	Raw materials, labor salaries and wages, depreciation, energy, etc.	366,534,174,722.96	65.63	480,639,970,656.49	72.82	-23.74
            Auto parts	Raw materials, labor salaries and wages, depreciation, energy, etc.	156,532,375,412.29	28.03	147,843,383,224.12	22.40	5.88
            Service trade and others	Raw materials, labor salaries and wages, depreciation, energy, etc.	33,383,486,551.19	5.98	28,817,818,582.92	4.37	15.84
            Finance	Labor wages, depreciation, energy, etc.	2,006,973,587.57	0.36	2,689,301,717.27	0.41	-25.37
            Total		558,457,010,274.01	100.00	659,990,474,180.80	100.00	-15.38

         5. Changes in consolidation scope due to changes in equity of major subsidiaries during the reporting period

            √Applicable □N/A

            For details, refer to Section X, (IX) in this report.

         6. Major changes or adjustments in the Company's business, products or services during the reporting period

            □Applicable √N/A

         7. Major customers and suppliers
            1. Major customers of the Company

               √Applicable □N/A

               Sales of the top five customers amounted to RMB 81,882.7669 million, accounting for 13.33% of the annual total sales. Among the top five customers, sales from related parties amounted to RMB 0 million, accounting for 0% of the total annual sales.

               Situations where the proportion of sales to a single customer exceeded 50% of the total sales, and there were new customers among the top 5 customers or high dependency on a few customers during the reporting period

               √Applicable □N/A

               Unit: RMB 10 Thousand

               S/N	Customer name	Sales	Proportion to annual total sales (%)
               1	Customer 5	991,384.24	1.61

            2. Major suppliers of the Company

         √Applicable □N/A

         Purchase from the top five suppliers amounted to RMB 202,385.7555, accounting for 36.37% of the total annual purchase. Among the top five suppliers, purchase from related parties amounted to RMB 3,850.0409 million, accounting for 0.69% of the total annual purchase.

         Situations where the proportion of purchase from a single supplier exceeded 50% of the total purchase, and there were new suppliers among the top 5 suppliers or high dependency on a few suppliers during the reporting period.

         □Applicable √N/A

      3. Expenses

         √Applicable □N/A

         Unit: RMB

         Items	2024	2023	Changes (%)
         Selling expenses	20,080,258,315.83	24,784,563,685.16	-18.98
         Administrative expenses	21,108,125,732.22	24,240,271,451.56	-12.92
         R&D expenses	17,649,893,105.21	18,365,413,289.29	-3.90
         Financial expenses	3,054,077,070.48	-156,683,993.96	2049.20
         Income tax expenses	4,677,794,462.18	5,912,843,489.27	-20.89

         Note: The changes in financial expenses compared with the same period last year were mainly due to the increase in exchange losses caused by the impact of market exchange rates.

      4. R&D expenditures
         1. R&D expenditures

            √Applicable □N/A

            Unit: RMB

            R&D expenditures expensed in the current period	17,649,893,105.21
            R&D expenditures capitalized in the current period	4,163,196,940.09
            Total R&D expenditures	21,813,090,045.30
            Proportion of R&D expenditures to revenue (%)	3.55
            Proportion of capitalization of R&D expenditures (%)	19.09

            Note: In 2024, the aggregate R&D investment of the Group including its major joint venture vehicle enterprises was RMB 35,161,081,900, an increase of 7.32% compared with RMB 32,764,176,800 in 2023 (on the same basis).

         2. R&D personnel

            √Applicable □N/A

            Number of R&D personnel in the Company	30,600
            Proportion of R&D personnel to the total employees in the Company (%)	17.5
            Education background of R&D personnel
            Category	Number
            Postgraduate and above	12,453
            Bachelor and below	18,147
            Age of R&D personnel
            Category	Number
            Below 35 years old (including 35 years old)	19,740
            35 to 45 years old (excluding 35 years old, including 45 years old)	8,485
            Over 45 years old	2,375

         3. Explanation

            √Applicable □N/A

            During the reporting period, the Company stepped up efforts in the research and development of core intelligent and electrification technologies. By considering user experience and specific use scenarios, the Company continued to promote the research and industrialization of key core technologies such as wire-controlled chassis, solid batteries, and chip localization, and completed the upgrade and release of the "seven major technology bases" version 2.0. In addition, the Company achieved breakthroughs and applications in innovative technologies such as solid batteries, energy closed-loop, efficient powertrain, intelligent chassis, full-stack software architecture, and new electronic architecture, and deepened industry-academy-research with multiple universities and research institutes, leveraging the advantages of innovation resources to create the "Tech SAIC" brand label. In 2024, SAIC and its subsidiaries won 13 Science and Technology Progress Awards of China Automotive Industry, and became the only vehicle group in China whose passenger and commercial vehicles were both among the first batch of intelligent connected vehicles (ICVs) included in the pilot program for the access and on-road passage of ICVs.

         4. Reasons for significant changes in the composition of R&D personnel and the impact on the development of the Company in the future

         □Applicable √N/A

      5. Cash flows

         √Applicable □N/A

         Unit: RMB

         Items	2024	2023	Changes (%)
         Net cash flows from operating activities	69,267,789,561.24	42,334,422,535.36	63.62
         Net cash flows from investing activities	-3,503,392,907.79	-42,233,896,179.71	Not applicable
         Net cash flows from financing activities	-9,312,171,110.35	-10,058,382,110.52	Not applicable

         Note: Analysis on changes in cash flows is set out in the analysis on changes in relevant accounts in income statement and cash flow statement.

   2. Explanation on significant changes in profit arising from non-main operations

      √Applicable □N/A

      In 2024, the Company's net profit attributable to shareholders of listed companies after deducting non-recurring profit or loss decreased by 153.85% year-on-year. The main reasons are detailed in (VI) Disposals of significant assets and equity of V. Operations in the reporting period in Section III Management Discussion and Analysis of this report.

   3. Analysis on assets and liabilities

      √Applicable □NA

      1. Assets and liabilities

         Unit: RMB

         Items	Ending balance in 2024	Proportion of ending balance in 2024 to total assets (%)	Ending balance in 2023	Proportion of ending balance in 2023 to total assets (%)	Changes (%)
         Cash at bank and on hand	197,978,171,793.49	20.68	143,635,984,032.11	14.27	37.83
         Financial assets held for trading	62,278,094,659.45	6.51	46,687,571,217.37	4.64	33.39
         Notes receivable	5,467,687,054.04	0.57	9,093,233,742.03	0.90	-39.87
         Interest receivable	1,994,718,706.47	0.21	1,029,187,510.10	0.10	93.81
         Dividends receivable	1,837,388,304.82	0.19	997,179,769.65	0.10	84.26
         Other current assets	67,139,720,011.10	7.01	129,206,875,988.29	12.84	-48.04
         Debt investments	12,862,102,846.02	1.34	23,536,184,000.00	2.34	-45.35
         Other debt investments	627,084,958.34	0.07	4,569,999,800.00	0.45	-86.28
         Investments in other equity instruments	18,265,078,591.61	1.91	13,713,232,621.62	1.36	33.19

         Other non-current assets	7,257,487,137.78	0.76	10,514,504,363.77	1.04	-30.98
         Taking from banks and other financial institutions	25,965,957,767.65	2.71	48,630,585,445.29	4.83	-46.61
         Dividends payable	1,641,491,124.34	0.17	348,107,084.76	0.03	371.55
         Non-current liabilities to be settled within one year	39,267,240,288.30	4.10	27,365,163,161.79	2.72	43.49
         Bonds payable	4,660,817,604.70	0.49	11,424,373,533.21	1.13	-59.20

         Other explanations:

         1. Cash at bank and on hand increased by 37.83% compared with the ending balance of the previous period, mainly due to the increase in the net cash flow arising from the Company's operating activities and investing activities this year.

         2. Financial assets held for trading increased by 33.39% compared with the ending balance of the previous period, mainly due to the increase in the financial assets held for trading of the Company's subsidiary, SFC.

         3. Notes receivable decreased by 39.87% compared with the ending balance of the previous period, mainly due to the decrease in the trade acceptance notes receivable of the subsidiaries of the Company.

         4. Interest receivable increased by 93.81% compared with the ending balance of the previous period, mainly due to the year-on-year increase in the interest on time deposits receivable from banks.

         5. Dividends receivable increased by 84.26% compared with the ending balance of the previous period, mainly due to the year-on-year increase in the dividends receivable for joint ventures.

         6. Other current assets decreased by 48.04% compared with the ending balance of the previous period, mainly due to the year-on-year increase in the short-term borrowings and interbank deposits to be settled within one year of the Company's subsidiaries.

         7. Debt investments decreased by 45.35% compared with the ending balance of the previous period, mainly due to the year-on-year decrease in the time deposits due beyond one year.

         8. Other debt investments decreased by 86.28% compared with the ending balance of the previous period, mainly due to the year-on-year decrease in the interbank deposits and bonds due beyond one year held by the subsidiaries of the Company.

         9. Investments in other equity instruments increased by 33.19% compared with the ending balance of the previous period, mainly due to the year-on-year decrease in investment value of the stocks held by the Company.

         10. Other non-current assets decreased by 30.98% compared with the ending balance of the previous period, mainly due to the year-on-year decrease in the ABS and other stocks issued by the Company's subsidiary, SFC.

         11. Taking from banks and other financial institutions decreased by 46.61% compared with the ending balance of the previous period, mainly due to the year-on-year decrease in the taking from banks and other financial institutions of the Company's subsidiary, SFC.

         12. Dividends payable increased by 371.55% compared with the ending balance of the previous period, mainly due to the increase in the dividends payable to minority shareholders of subsidiaries of the Company.

         13. Non-current liabilities to be settled within one year increased by 43.49% compared with the ending balance of the previous period, mainly due to the increase in the long-term borrowings to be settled within one year of the Company.

         14. Bonds payable decreased by 59.20% compared with the ending balance of the previous period, mainly due to the principal and interest repayment for part of the non-bank financial institution bonds of the Company's subsidiaries.

      2. Overseas assets

         √Applicable □NA

         1. Asset size

            Including: Overseas assets RMB 72,701,380,949.60 (Unit: RMB -), accounting for 7.60% of total assets.

         2. Explanation on the relatively high proportion of overseas assets

         □Applicable √N/A

      3. Restriction of significant assets as at the end of the reporting period

         □Applicable √N/A

      4. Other explanations

         □Applicable √N/A

   4. Analysis on operation data in the industry

      √Applicable □N/A

      The details are as follows:

      Analysis on operation data for auto manufacturing
      1. Production capacity

         √Applicable □N/A

         Existing production capacity

         √Applicable □N/A

         Major plants	Designed production capacity	Production capacity in the reporting period	Utilization rate (%)
         SAIC Volkswagen Automotive Co., Ltd.	208.8	114.7	55
         SAIC General Motors Co., Ltd.	190.8	42.2	22
         SAIC Motor Corporation Limited Passenger Vehicle Branch	104	70.7	68
         SAIC GM Wuling Co., Ltd.	176	135.2	77
         SAIC MAXUS Vehicle Co., Ltd.	37.5	18.0	48
         SAIC Motor CP Co., Ltd.	7.2	2.2	31
         SAIC-GM-Wuling Motor Indonesia	6	2.4	40
         JSW MG Motor India Private Limited	5.6	5.9	105
         Others (Note)	13.7	2.9	21

         Others mainly include Shanghai Sunwin Bus Co., Ltd., SAIC HONGYAN Automobile Co., Ltd. and Nanjing Iveco Automobile Co., Ltd.

         Capacity under construction

         □Applicable √N/A

         Capacity calculation criteria

         √Applicable □N/A

         The calculation of designed production capacity is on the basis of 250 working days per year, and 16 working hours per day, namely 4,000 working hours for one year. "Production capacity in the reporting period" refers to actual production in the reporting period; utilization rate is the actual production in the reporting period divided by designed production capacity.

      2. Sales and production of vehicles

         □Applicable □N/A

         By vehicle type

         √Applicable □N/A

         	Sales (Vehicles)			Production (Vehicles)
         Categories	2024	2023	Changes (%)	2024	2023	Changes (%)
         Basic passenger vehicle	2,019,811	2,434,349	-17.03	2,009,712	2,445,384	-17.82

         Sports utility vehicle (SUV)	1,155,054	1,436,484	-19.59	1,146,178	1,428,852	-19.78
         Multi purpose vehicle (MPV)	249,946	368,475	-32.17	257,786	369,905	-30.31
         Cross passenger vehicle	204,041	166,675	22.42	208,109	165,476	25.76
         Bus	92,932	112,954	-17.73	93,089	113,797	-18.20
         Truck	291,216	501,928	-41.98	292,978	501,881	-41.62
         Total	4,013,000	5,020,865	-20.07	4,007,852	5,025,295	-20.25

         By region

         √Applicable □N/A

         	Sales in domestic market (Vehicles)			Sales in overseas market (Vehicles)
         Categories	2024	2023	Changes (%)	2024	2023	Changes (%)
         Basic passenger vehicle	1,602,138	2,010,640	-20.32	417,673	423,709	-1.42
         Sports utility vehicle (SUV)	645,747	780,640	-17.28	509,307	655,844	-22.34
         Multi purpose vehicle (MPV)	234,214	349,541	-32.99	15,732	18,934	-16.91
         Cross passenger vehicle	175,735	140,892	24.73	28,306	25,783	9.79
         Bus	75,428	86,280	-12.58	17,504	26,674	-34.38
         Truck	241,249	444,630	-45.74	49,967	57,298	-12.79
         Total	2,974,511	3,812,623	-21.98	1,038,489	1,208,242	-14.05

      3. Sales and production of auto parts

         √Applicable □N/A

         The Company's business of auto parts is mainly operated by HASCO, (stock code: 600741), a subsidiary controlled by the Company. For details of its business in 2024, refer to its annual report 2024 published on https://www.sse.com.cn by HASCO (600741).

         By part

         □Applicable √N/A

         By market

         □Applicable √N/A

      4. New energy vehicles business

         √Applicable □N/A

         Production capacity of new energy vehicles

         √Applicable □N/A

         Major plants	Designed production capacity (Vehicles)	Production capacity in the reporting period (Vehicles)	Utilizatio n rate (%)
         SAIC Volkswagen Automotive Co., Ltd.	-	137,613	-
         Including: SAIC Volkswagen MEB Plant	240,000	124,077	52
         SAIC General Motors Co., Ltd.	-	81,990	-
         SAIC Motor Corporation Limited Passenger Vehicle Branch	-	137,426	-
         SAIC GM Wuling Co., Ltd.	-	735,350	-
         SAIC MAXUS Vehicle Co., Ltd.	-	34,760	-
         IM Motors Co., Ltd.	-	65,393	-
         SAIC Motor CP Co., Ltd.	-	3,817	-

         JSW MG Motor India Private Limited	-	29,031	-
         SAIC-GM-Wuling Motor Indonesia	-	16,137	-
         Others	-	3,644	-

         Note 1: Except for SAIC Volkswagen MEB Plant, the Company's other new energy products are manufactured on the same line and share production capacity with traditional ICE vehicles. The Company can adjust the two types of products in line with market conditions and implement flexible production.

         Note 2: Others mainly include Shanghai Sunwin Bus Co., Ltd., SAIC HONGYAN Automobile Co., Ltd. and Nanjing Iveco Automobile Co., Ltd.

         Sales and production of new energy vehicles

         √Applicable □N/A

         	Sales (Vehicles)			Production (Vehicles)
         Categories	2024	2023	Changes (%)	2024	2023	Changes (%)
         Passenger vehicle	1,139,255	1,089,191	4.60	1,146,193	1,080,488	6.08
         Commercial vehicle	94,821	33,717	181.23	98,968	34,052	190.64
         Total	1,234,076	1,122,908	9.90	1,245,161	1,114,540	11.72

         Income and subsidy of new energy vehicles

         √Applicable □N/A

         Unit: RMB 10 Thousand

         Categories	Revenue	Subsidy for new energy vehicles	Proportion of subsidy to revenue (%)
         Passenger vehicle	9,176,080	0	0%
         Commercial vehicle	587,408	0	0%

      5. Automotive finance

         √Applicable □NA

         Automotive finance

         √Applicable □NA

         Unit: RMB 100 million

         Name of subsidiary			SAIC Finance Co., Ltd.
         General information
         Registered capital	Total assets		Net assets	Revenue	Operating profit	Net profit
         153.80	2,135.17		528.19	71.41	62.95	51.90
         Major operating indicators
         Amount of loans		Number of loans		Balance of loans		Credit impairment losses
         1,428.01		1,260,148		576.42		19.73
         Major regulatory indicators
         Core tier-1 capital adequacy ratio (%)	Tier-1 capital adequacy ratio (%)	Capital adequacy ratio (%)	NPL ratio (%)	Provision coverage (%)	Loan provision ratio (%)	Liquidity ratio (%)
         31.44	31.44	32.43	0.97	354.37	3.42	136.18

         Name of subsidiary		SAIC GMAC Automotive Finance Co., Ltd.
         General information
         Registered	Total assets	Net assets	Revenue	Operating	Net profit

         capital					profit
         92.00	675.96		222.86	46.24	30.66	23.06
         Major operating indicators
         Amount of loans		Number of loans		Balance of loans		Credit impairment losses
         837.73		726,951		506.99		20.66
         Major regulatory indicators
         Core tier-1 capital adequacy ratio (%)	Tier-1 capital adequacy ratio (%)	Capital adequacy ratio (%)	NPL ratio (%)	Provision coverage (%)	Loan provision ratio (%)	Liquidity ratio (%)
         21.31	21.31	22.4	0.87	470.66	4.08	108.79

         Name of subsidiary			Shanghai Dongzheng Automotive Finance Co., Ltd.
         General information
         Registered capital	Total assets		Net assets	Revenue	Operating profit	Net profit
         21.40	77.30		36.81	4.04	2.13	2.65
         Major operating indicators
         Amount of loans		Number of loans		Balance of loans		Credit impairment losses
         51.89		87,601		66.05		3.97
         Major regulatory indicators
         Core tier-1 capital adequacy ratio (%)	Tier-1 capital adequacy ratio (%)	Capital adequacy ratio (%)	NPL ratio (%)	Provision coverage (%)	Loan provision ratio (%)	Liquidity ratio (%)
         43.48	43.48	47.38	1.02	588.09	6.02	469.72

         Five-Level categories of loan classification

         √Applicable □N/A

         Unit: RMB 100 million

         	SAIC Finance Co., Ltd.		SAIC GMAC Automotive Finance Co., Ltd.		Shanghai Dongzheng Automotive Finance Co., Ltd.
         Items	Amount	Proportion (%)	Amount	Proportion (%)	Amount	Proportion (%)
         Normal	566.72	98.32	485.73	95.80	63.56	96.24
         Attention	4.13	0.72	16.86	3.33	1.81	2.74
         Subprime	2.68	0.46	1.67	0.33	0.20	0.30
         Doubtful	1.24	0.22	0.95	0.19	0.15	0.22
         Loss	1.65	0.28	1.77	0.35	0.33	0.50
         Total	576.42	100.00	506.98	100.00	66.05	100.00

      6. Other explanations

         □Applicable √N/A

   5. Investment analysis General analysis on equity investments

      √Applicable □N/A

      The Company is an auto manufacturing enterprise with an extensive business layout and various types of investments. At the end of the reporting period, the ending balance of the Company's long-term equity investments was RMB 60.363 billion, decreased by RMB 6.338 billion or 9.50% compared with opening balance. Details of investments are set out in the notes in this report.

      1. Significant equity investments

         □Applicable √N/A

      2. Significant non-equity investments

         □Applicable √N/A

      3. Financial assets at fair value

         √Applicable □N/A

         Unit: RMB

         Category of assets	Opening balance	Profit or loss from changes in fair value in 2024	Accumulated changes in fair value included in equity	Impairment provided in 2024	Purchase in 2024	Disposals/Redemption in 2024	Other changes	Ending balance
         Financial assets held for trading	46,687,571,217.37	1,861,065,356.50			114,385,101,201.71	-100,880,259,915.41	224,616,799.28	62,278,094,659.45
         Financing receivables	16,717,326,180.65		1,893,333.17		93,082,931,849.25	-95,013,302,536.41	189,706,111.10	14,978,554,937.76
         Other current assets - Interbank deposits	47,847,818,204.10		-5,624,223.27		26,713,013,454.54	-47,800,554,135.37		26,754,653,300.00
         Other debt investments	4,569,999,800.00				627,084,958.34	-4,569,999,800.00		627,084,958.34
         Investments in other equity instruments	13,713,232,621.62		4,471,610,169.49			-3,299,997.93	83,535,798.43	18,265,078,591.61
         Other non-current financial assets	22,775,688,309.19	495,413,070.52			7,446,523,839.66	-4,170,949,141.79		26,546,676,077.58
         Total	152,311,636,332.93	2,356,478,427.02	4,467,879,279.39		242,254,655,303.50	-252,438,365,526.91	497,858,708.81	149,450,142,524.74

         Investments in securities

         √Applicable □N/A

         Unit: RMB million

         Securities type

         Securities code

         Securities abbreviation

         Initial investment cost

         Source of funds

         Opening balance of carrying amount

         Profit or loss from changes in fair value in

         Accumulated changes in fair value included in

         Purchase in 2024

         Disposals in 2024

         Income or losses from investments in 2024

         Ending balance of carrying amount

         Accounting item

         						2024	equity
         Stocks	600036	CMB	3,681.19	Own funds	8,627.70		3,560.24				12,187.94	Investments in other equity instruments
         Stocks	688779	Minmetals New Energy	169.50	Own funds	78.4	-26.43			61.67	9.70	0.00	Financial assets held for trading
         Stocks	688772	ZHUHAI COSMX	34.72	Own funds	49.25	-7.93			40.12	-1.20	0.00	Financial assets held for trading
         Stocks	301219	Teng Yuan Cobalt	250.00	Own funds	132.38	25.56			46.73	4.64	115.85	Financial assets held for trading
         Stocks	688295	Zhongfu Shenying	49.75	Own funds	49.7	-15.89					33.81	Financial assets held for trading
         Stocks	688347	Hua Hong Semiconductor Limited	100.00	Own funds	77.17	2.30			60.71	17.82	36.58	Financial assets held for trading
         Total	/	/	4,285.16	/	9,014.60	-22.39	3,560.24		209.23	30.96	12,374.18	/

         Explanation on investments in securities

         √Applicable □N/A

         1. The above are securities directly invested by SAIC Motor Corporation Limited.

         2. Value-added tax ("VAT") has been deducted from the investment income column in the current period.

         Investments in private equity

         √Applicable □N/A

         1. Qingdao SAIC Innovation and Upgrading Industry Equity Investment Fund Partnership (L.P.) ("Qingdao SAIC Innovation Fund")

            1. Establishment or expansion of the fund: Qingdao SAIC Innovation Fund was established on 12 January 2021. In order to explore the opportunities brought by industrial restructuring and innovation, and to deepen the layout in the field of new energy and intelligent connectivity, in May 2022, the Company made an additional contribution of RMB 7.5 billion to the fund and completed the change of the filing on 11 May 2022. The fund focuses on the investment field of auto industry chain and related fields, including but not limited to new energy, intelligent connectivity, sharing, intelligent manufacturing and new materials. The total capital contribution of the fund after the additional contribution was RMB 13.5495 billion, of which SAIC Motor contributed RMB 13.5 billion, holding 99.63% of equity, SAIC Financial Holding contributed RMB 45 million, holding 0.33% of equity, Shangqi Capital contributed RMB 2.25 million, holding 0.02% of equity, and Hengxu Capital contributed RMB 2.25 million, holding 0.02% of equity.

            2. Operation and progress of the fund: As at 31 December 2024, the total paid-in capital of the fund was RMB 13.339 billion, investing in 23 projects and 6 sub funds, with a total contribution of RMB 12.979 billion.

         2. Jiaxing SAIC Chuangyong Equity Investment Partnership (Limited Partnership) ("Jiaxing SAIC Chuangyong Fund")

         1. Establishment or expansion of the fund: Jiaxing SAIC Chuangyong Fund was established on 23 June 2022 and completed the filing on 13 July 2022. The initial contribution size was RMB 3 billion, among which SAIC Financial Holding contributed RMB 2.95 billion, holding 98.3333% of equity, SAIC Venture Capital contributed RMB 48 million, holding 1.6000% of equity, Shangqi Capital contributed RMB 1 million, holding 0.0333% of equity, and Hengxu Capital contributed RMB 1 million, holding 0.0333% of equity. The fund mainly invested in sub funds and direct investment projects, focusing on areas including "carbon peaking and carbon neutrality", intelligent connectivity, auto electronics, advanced manufacturing, new materials, semiconductors, multiple extensions of the auto industry such as metaverse and information technology application innovation industry, and moderate layout of innovative business.

         2. Operation and progress of the fund: As at 31 December 2024, the total paid-in capital of the fund was RMB 2.533 billion, investing in 38 projects and 3 sub funds, with a total contribution of RMB 2.533 billion.

         Shandong Shangqi Shangao New Power Equity Investment Fund Partnership (Limited Partnership) ("Shangao Fund")

         1. Establishment or expansion of the fund: Shangao Fund was established on 8 June 2022 and completed the filing on 7 July 2022. The initial contribution size was RMB 0.807 billion, among which Shandong Hi-Speed Group contributed RMB 399 million, holding 49.4424% of equity, SNAT contributed RMB 199 million, holding 24.6592% of equity, SAIC Financial Holding contributed RMB 199 million, holding 24.6592% of equity, Shanghai Qisu Business contributed RMB 8 million, holding 0.9913% of equity, Shandong High-Speed Beiyin Investment contributed RMB 1 million, holding 0.1239% of equity, and Shangqi Capital contributed RMB 1 million, holding 0.1239% of equity. The fund focused on the auto industry chain, with emphasis on direct investment projects in the field of auto new energy (including drive motors and power batteries), hydrogen fuel cell industry chain, engine aftertreatment, aided driving and autopilot, auto electronics and semiconductors, and new auto materials.

         2. Operation and progress of the fund: As at 31 December 2024, the total paid-in capital of the fund was RMB 0.807 billion, investing in 16 projects, with a total contribution of RMB 0.741 billion.

      4. Nanjing Junhongtianyin Equity Investment Partnership (Limited Partnership) ("Nanjing Junhongtianyin Fund")

         1. Establishment or expansion of the fund: Nanjing Junhongtianyin Fund was established on 28 September 2022 and completed the filing on 1 November 2022. The initial contribution size was RMB 1.551 billion, among which SAIC Financial Holding contributed RMB 1,400 million, holding 90.26% of equity, Jiangning High Tech Fund contributed RMB 150 million, holding 9.67% of equity, and Nanjing Hengyishang contributed RMB 1 million, holding 0.06% of equity. The fund was the link fund of Suzhou Shenqilina Green Equity Investment Partnership (Limited Partnership) ("Hengxu Green Mobility Fund"), which contributed RMB 1.55 billion to Hengxu Green Mobility Fund and held 41.2234% of equity. Hengxu Green Mobility Fund was established on 29 November 2022 and completed filing on 8 December 2022. The fund mainly invested in fields of green transportation, clean energy, energy saving and emission reduction, advanced manufacturing, frontier technology, big consumption and big health.

         2. Operation and progress of the fund: As at 31 December 2024, the total paid-in capital of the fund was RMB 3.819 billion, investing in 33 projects, with a total contribution of RMB 2.081 billion.

      5. Henan Shangqi Huirong Shangcheng No.1 Industrial Fund Partnership (Limited Partnership) ("Shangqi Shangcheng No.1 Fund")

         1. Establishment or expansion of the fund: Shangqi Shangcheng No.1 Fund was established on 9 March 2023 and completed the filing on 31 March 2023. In October 2023, to further enhance the Company's expansion and flexibility in the auto industry layout, the Company's subsidiaries, SAIC Financial Holding and SNAT, together with Guofu Navigation, Lianming Shares, Qiqian Consulting and others, participated in the expansion of the fund. In light of the overall capital

            arrangement of the investors themselves, the final committed capital scale of the fund in 2024 was adjusted to RMB 4.2125 billion and all actual capital contributions were completed. SAIC Financial Holding contributed RMB 1.33 billion, holding 31.57% of equity; Henan Strategic Emerging Industry Investment Fund contributed RMB 0.6 billion, holding 14.24% of equity; Jiangxi Modern Industry Guidance Fund contributed RMB 0.3 billion, holding 7.12% of equity; Chongqing Yufu Capital contributed RMB 0.3 billion, holding 7.12% of equity; Guofu Navigation contributed RMB 0.3 billion, holding 7.12% of equity; SNAT contributed RMB 0.2 billion, holding 4.75% of equity; Zhejiang Qingzhan Industry contributed RMB 0.2 billion, holding 4.75% of equity; HASCO Motor contributed RMB 0.17 billion, holding 4.04% of equity; Donghua Automotive contributed RMB 0.17 billion, holding 4.04% of equity; China United Automotive contributed RMB 0.15 billion, holding 3.56% of equity; Jiangxi State-owned Capital Operation Holding Group Co., Ltd. contributed RMB 0.15 billion, holding 3.56% of equity; Qingdao Huizhu Talent Industry Investment Fund contributed RMB 0.1 billion, holding 2.37% of equity; Shandong Land-sea-port City Construction Phase I contributed 70 million, holding 1.66% of equity; Taikang Investment contributed RMB 50 million, holding 1.19% of equity; Anhui Guoyuan Trust contributed RMB 49.9 million, holding 1.18% of equity; Lianming Shares contributed RMB 30 million, holding 0.71% of equity; Qiqian Consulting contributed RMB 41.6 million, holding 0.99% of equity; Shangqi Capital contributed RMB 1 million, holding 0.02% of equity. The fund focuses on auto electronics, semiconductors, new energy, and industry chain extension and related fields, exploring sub-sectors such as autonomous driving, intelligent cabins, low-carbon transportation, and semiconductors and information security related to the industry chain.

         2. Operation and progress of the fund: As at 31 December 2024, the total paid-in capital of the fund was RMB 4.2125 billion, investing in 47 projects, with a total contribution of RMB 2.531 billion.

      6. Jiaxing Chuangqi Venture Capital Partnership (Limited Partnership) ("Jiaxing Chuangqi Fund")

         1. Establishment or expansion of the fund: Jiaxing Chuangqi Fund was established on 10 May 2023 and completed the filing on 29 May 2023. The initial contribution size was RMB 5 billion, among which SAIC Changzhou Innovation Development Fund contributed RMB 4.999 billion, holding 99.98% of equity and Shangqi Capital contributed RMB 1 million, holding 0.02% of equity. The fund mainly invests in high-quality enterprises related to the innovation and development of the auto industry chain.

         2. Operation and progress of the fund: As at 31 December 2024, the total paid-in capital of the fund was RMB 1.971 billion, investing in 1 project, with a total contribution of RMB 1.97 billion.

      7. Shanghai SAIC Xinju Venture Capital Partnership (Limited Partnership) ("Shanghai SAIC Xinju Fund")

         1. Establishment or expansion of the fund: Shanghai SAIC Xinju Fund was established on 7 July 2023 and completed the filing on 1 August 2023. The initial contribution size was RMB 6.012 billion, among which SAIC Motor contributed RMB 6 billion, holding 99.80% of equity, SAIC Financial Holding contributed RMB 10 million, holding 0.166% of equity, SAIC Hengxu contributed RMB 1 million, holding 0.017% of equity, and Shangqi Capital contributed RMB 1 million, holding 0.017% of equity. The fund will invest in sub funds and direct investment projects, focusing on key technology products related to chips in the upstream of the semiconductor industry chain (such as equipment, materials, EDA and parts), design enterprises, contract factories, and driven by auto intelligence, electrification, and connectivity, especially investment opportunities related to auto chips.

         2. Operation and progress of the fund: As at 31 December 2024, the total paid-in capital of the fund was RMB 0.321 billion, investing in 2 projects, with a total contribution of RMB 0.318 billion.

      8. Shanghai SAIC Chuangyuan Venture Capital Partnership (Limited Partnership) ("Shanghai SAIC Chuangyuan Fund")

         1. Establishment or expansion of the fund: Jiaxing SAIC Chuangyuan Fund was established on 3 April 2024 and completed the filing on 26 April 2024. The initial contribution size was RMB 6.004 billion, of which SAIC Financial Holding contributed RMB 5.8 billion, holding 96.6023% of equity, SAIC Venture Capital contributed RMB 0.2 billion, holding 3.3311% of equity, Shangqi Capital contributed RMB 2 million, holding 0.0333% of equity, and Hengxu Capital contributed RMB 2 million, holding 0.0333% of equity. The fund mainly invested in auto industry chain and related fields, focusing on "carbon peaking and carbon neutrality", intelligent connectivity, auto electronics, advanced manufacturing, new materials, multiple extensions of the auto industry such as intelligent robots and automotive software ecosystem.

         2. Operation and progress of the fund: As at 31 December 2024, the total paid-in capital of the fund was RMB 165 million, investing in 2 projects and 3 sub funds, with a total contribution of RMB 156 million.

         Derivative investments

         √Applicable □NA

         (1).Derivative investments for hedging purposes during the reporting period

         √Applicable □NA

         Unit: RMB 10 Thousand

         Derivative investment type	Initial investment	Opening balance of carrying amount	Profit or loss from changes in fair value in 2024	Accumulated changes in fair value which are included in equity	Amount purchased in the reporting period	Amount disposed in the reporting period	Ending balance of carrying amount	Proportion of carrying amount to the Company's net assets at the end of the reporting period (%)
         Forward foreign exchange settlement and sales			1,359.93
         Total			1,359.93
         Explanation on the accounting policies and specific accounting principles for hedging business during the reporting period, as well as whether there were significant changes compared to the previous reporting period	Not applicable
         Explanation on actual profit or loss during the reporting period	In order to effectively avoid and prevent foreign exchange risk and reduce the impact of foreign exchange fluctuations on the Company's operations, the Company enters into forward foreign exchange settlement and sales business. During the reporting period, the Company realized a delivery income of RMB 13.5993 million

         	from the forward foreign exchange settlement and sales.
         Explanation on hedging effectiveness	The Company's foreign exchange forward hedging business is based on actual foreign exchange receipts and payments and is used to hedge costs and protect against the foreign exchange fluctuation risk. The gains or losses on the foreign exchange forward contracts effectively hedged the changes in the value of the hedged exposure caused by exchange rate fluctuations and the overall hedging effectiveness met expectations.
         Source of funds for derivative investments	Own funds
         Explanation on risk analysis and control measures for derivative holdings during the reporting period (including but not limited to market risk, liquidity risk, credit risk, operational risk and legal risk)	1. Market risk: The Company's foreign exchange forward trading products are all simple foreign exchange derivatives closely related to the basic business, and are consistent with the basic business in terms of variety, size, direction and maturity. They seek only to hedge risk exposure and do not engage in any form or substance of speculative trading. The Company adheres to the principle of prudence and steadiness in foreign exchange risk management. 2. Liquidity risk: In actual operations, the deterioration of sales may lead to an inability to collect payments on a timely basis, resulting in the liquidity risk of a lack of funds for derivative transactions. The hedging limit of most of the domestic and overseas entities in which the Company invests is set within a certain proportion of the corresponding risk exposure. Therefore, if some accounts receivable cannot be collected on time, there will be no liquidity risk for hedging transactions. In addition, enterprises participating in domestic and foreign derivative transactions will also improve the management of receivables and actively collect accounts receivable to avoid or reduce the overdue. If accounts receivable become overdue, the corresponding derivative transactions are extended in a timely manner. 3. Credit risk: The Company only engages in foreign exchange forward business with qualified domestic and foreign financial institutions that have stable operations and good credit ratings, SAIC SFC and SAIC HK International Finance Ltd. 4. Operational, legal, and other risks: The Company has formulated the related internal control systems such as the Management of Financial Derivatives in accordance with relevant laws, regulations and related standard documents, which standardize the business operation and approval process of financial derivatives. The relevant internal control systems or derivative business of each enterprise have been approved by the relevant authorities.
         Changes in the market prices or fair values of derivatives invested in during the reporting period, and the analysis of the fair value of derivatives should disclose the specific methodologies used and the assumptions and parameters	Not applicable
         Lawsuits (if applicable)
         Announcement disclosure date of the Board for approval of derivative investments (if any)	30 March 2024

         (2).Derivative investments for speculative purposes during the reporting period

         □Applicable √N/A Other explanations:

         The Proposal on Foreign Exchange Derivative Trading Business in 2024, which was reviewed and approved at the 19th meeting of the 8th Board of Directors of the Company, stipulated that the scope of derivative transactions included foreign exchange forwards, the limit of derivative transactions was USD 11 billion or other equivalent foreign currencies, and the term of derivative transactions matched with the term of the transactions of underlying assets, generally not exceeding 12 months.

         The enterprises conducted business in accordance with the approved limit. As at 31 December 2024, there were no cases in which the limit was exceeded. The balance of the limit at the end of December 2024 was USD 0.103 billion or other equivalent foreign currencies. Foreign exchange forward business was conducted, the term of which matched with the term of the transactions of underlying assets or the term of the exposure being hedged and was not exceeding 12 months.

         4. Specific progress of significant asset reconstructing and integration during the reporting period

         □Applicable √N/A

   6. Disposals of significant assets and equity

      √Applicable □N/A

      During the reporting period, to further advance the Company's international business strategy, seize the opportunities of rapid development of the Indian market, continuously increase the market share of MG brand in the Indian market, and effectively prevent business risks, MG Motor India Pvt. Ltd. (hereinafter referred to as MGI, which has now been renamed JSW MG Motor India Private Limited) introduced local investors in India. By leveraging the synergy effect, it aims to create more favorable conditions for achieving sustainable and healthy development. 1) Equity transfer: JSW Ventures Singapore Pte. Limited ("JSW Singapore") subscribed for 1.012 billion shares (accounting for 25.94% of the total equity) of MGI held by the Company's subsidiary SAIC Motor HK Investment Co., Ltd. for INR 26.51 billion. 2) Capital increase and share expansion: JSW Singapore subscribed for 354 million shares (accounting for 9.06% of the total equity) that MGI additionally issued at a price of INR 926 million; IndoEdge India Fund subscribed for 312 million shares (accounting for 8% of the total equity) that MGI additionally issued at a price of INR 8.18 billion; Dealer Trust subscribed for 117 million shares (accounting for 3% of the total equity) that MGI additionally issued at a price of INR 3.07 billion; and Employee Stock Ownership Plan subscribed for 195 million shares (accounting for 5% of the total equity) that MGI additionally issued at a price of INR 5.11 billion. For more details, please refer to the Notice on Equity Transfer and Capital Increase of Subsidiaries (Lin No.023 [2024]) published on the website of the Shanghai Stock Exchange at https://www.sse.com.cn. After the equity transfer and capital increase were completed, the Company accounted for MGI using the equity method. This year, the Company achieved an increase in profits of RMB 5.178 billion. For details, please refer to Section X,

      (IX) in this report.

   7. Analysis on major holding companies and invested companies

      √Applicable □N/A

      Unit: RMB 10 Thousand

      Name of companies	Nature of business	Main products or services	Registered capital	Total assets	Net assets attributable to the parent company of the Company	Total revenue	Net profit attributable to the parent company of the Company
      SAIC Volkswagen	Manufacturing	Manufacturing and sales of vehicles	1,150,000	11,173,924.27	2,205,698.46	13,573,529.55	473,993.58
      SAIC GM	Manufacturing	Manufacturing and sales of vehicles	USD 108,300	5,182,720.79	-1,019,109.08	6,874,723.06	-2,668,811.32
      HASCO	Manufacturing	Manufacturing and sales of auto parts	315,272	18,500,595.81	6,204,418.74	16,885,218.38	669,070.30
      SNAT	Manufacturing	Production and sales of diesel engines and accessories	138,782.18	1,322,803.19	351,765.72	646,742.98	-199,897.62
      SAIC SFC	Finance	Financial services	1,538,000	27,701,540.50	5,879,407.33	1,300,033.09	465,265.07
      SGMW	Manufacturing	Manufacturing and sales of vehicles	166,808	5,698,101.10	996,990.98	7,793,371.49	104,499.40

   8. Structured entities controlled by the Company

   √Applicable □N/A

   As at 31 December 2024, the Company directly consolidated 6 structured entities and included those structured entities over which it had control in its consolidated financial statements, after taking into

   account its investment decision rights, its exposure to variable returns and the use of its investment decision rights to affect variable returns. Refer to the notes in this report for the relevant information.

6. Discussion and analysis on future development of the Company

√Applicable □N/A

The industry landscape mainly shows three features. First, the new round of technological revolution is driving profound changes in the automotive industry. With the deep integration of electrification and intelligence, the product definition and user experience of automobiles are also undergoing revolutionary changes, and the attribute of automobiles as "technology consumer goods" has become more prominent. Second, self-owned brands have risen profoundly in the domestic market. Not only have their market shares surpassed those of joint venture brands, but also with the cross-border entry of ICT enterprises, the Internet strategy and traffic marketing have brought new challenges to the traditional marketing model of the automotive industry. The competitive landscape of China's automotive industry is undergoing a disruptive reconstruction. Third, the industry characteristics of "internal competition and external pressure" persist. As the automotive industry enters the "elimination competition" stage, the domestic market has experienced intense "internal competition", with price wars becoming increasingly fierce. Domestic automakers are increasingly "going global" to seek new growth opportunities. However, due to the pressure from trade protection policies in the United States and Europe, the risks in the overseas market are also increasing day by day. At the same time, as international competition is transferred to the domestic market, Chinese automakers will participate more deeply in the competition in the global market. It is expected that in the next 3-5 years, the proportion of domestic vehicles in global sales will increase from the current 30% to around 45%.

There are three major trends in the industry. First, one of the main factors driving China's automotive consumption is the demand for improvement. Based on the experience of leading countries, as the number of cars per capita increases and "non-first-time buyers" become the dominant factor in new car purchases, consumers have a stronger desire for larger car sizes and better comfort. Considering the competitive characteristics of the Chinese market, while products are trending towards larger sizes and higher-end features, the average price continues to decline. More cost-effective large-sized vehicles may become the preferred choice for consumers when they make replacement purchases. Second, plug-in hybrid products (including extended-range models) will gain greater popularity. Due to zero range anxiety and their strong adaptability to the environment, the growth rate of plug-in hybrid products (including extended-range models) has been significantly higher than that of pure electric products in recent years. It is expected that in the next three years, the average annual growth rate of plug-in hybrid products (including extended-range models) will exceed 30%, becoming the main growth driver in the new energy vehicle market. Third, the demand for intelligence has increased. With the rapid iteration of intelligent technologies such as AI large models and their application in vehicles, consumers' attention and demand for intelligent cabin and intelligent driving technologies have significantly risen. Meanwhile, "Tech Equity" has promoted the coverage of intelligent automotive technologies to mid-to-low-priced products, and as a mobile intelligent terminal, automobiles will enter a stage of accelerated popularization. Fourth, the diversification of consumer groups and scenarios has led to more segments of the market, especially among female users and silver-haired users, as well as the emergence of new scenarios such as self drive travel. It is an important new opportunity for the Blue Ocean market, as well as a new challenge for product definition and marketing transformation.

In 2025, although the domestic economic operation in China and the external development environment still face many risks and challenges, with the expansion of the "Two New" policies (i.e. equipment renewals and trade-ins of consumer goods), especially the continuous strengthening of support for the automobile "trade-in for new" policy, as well as the possible stimulating effect brought by the gradual reduction of the NEV purchase tax waive or cut policy at the end of the year, the automotive industry in China will still maintain a stable and positive development trend. It is expected that the sales volume of domestic automobiles in 2025 will be approximately 32.9 million vehicles (including exports), with a year-on-year growth of 4.7%. Among them, the sales volume of new energy vehicles will be approximately 16 million vehicles, with a year-on-year growth of 24.4%, and the export volume of automobiles is expected to be 6.2 million vehicles, with a year-on-year growth of about 5.8%.