Shanzi Hi-Tech and Hozon New Energy are restructuring, with Qianhe Auto potentially becoming the synergistic vehicle.

The restructuring of Shanzi Hi-Tech and Hozon New Energy (the parent company of Nezha Auto) has entered a critical stage. Shanzi Hi-Tech, as the sole intended restructuring investor, has completed substantive operational takeover. The naming of Qianhe Auto has sparked market speculation, suggesting it may serve as a collaborative vehicle after the restructuring of Shanzi Hi-Tech and Nezha Auto, undertaking some of the functions of implementing the complete vehicle business. Although the two parties have not publicly disclosed a direct relationship, relevant records in Shanzi Hi-Tech's financial statements reinforce the potential connection between them.