On the afternoon of May 10, the signing ceremony of the Fast Eaton (Baoji) Light Duty Transmission Project was held in Saifei Square, Fast Xi'an High-tech Residential Area. Lu Zhiyuan, Vice Governor of Shaanxi Province, the provincial government, the provincial SASAC, the provincial Office of Industry and Information Technology, the municipal government and Party Committee of Baoji and the relevant management of Eaton Company, Weichai Power and our company attended the signing ceremony.

Hui Jincai, Mayor of Baoji, Ren Guo, Director of SASAC, Joao Faria, President of Eaton Corporation, and Yan Jianbo, Board Chairman of Fast Group made speeches respectively. Ma Di, executive vice mayor of Baoji, presided over the signing ceremony.

Before the signing of the contract, the Vice Governor Lu Zhiyuan highly praised the signing of the joint venture project, and pointed out that the important speech made by State President Xi Jinping at the Boao Forum for Asia clearly defined China's increasingly open development path. The successful of this project was the implementation of President Xi Jinping's speech spirit, the promotion of the "five new" strategy and the 30-year plan by the provincial Party Committee and provincial government, as well as the specific practice of 3 million automobile projects. It is hoped that the joint venture parties will exploit the advantages of strong alliance and complementary cooperation, promote the project rapidly, and make new contributions to Shaanxi's catch-up and surpass and local economic and social development.

In his speech, Mayor Hui Jincai and Director Ren Guocai congratulated the two parties on setting up the joint venture, and looked forward to the early completion and commissioning of the Fast Eaton (Baoji) Light Duty Transmission Project to achieve the established goals and become a new model and sample for joint venture cooperation and win-win development of the whole province and even the whole industry. We will make new and greater contributions to the provincial pillar industries and achieve the goal of 3 million automobile projects.

At the signing ceremony, Board Chairman Yan Jianbo, said that the establishment of Fast Eaton (Baoji) Light Duty Transmission Co., Ltd. was an important measure for Fast to carry out the strategic deployment of the Provincial Committee and government to build the 3 million automobile industry, extend the industrial chain and achieve a new leap forward, which marks the global layout of Fast and an important step in the development of internationalization. Eaton Corporation is the world's top 500 enterprise and the leader of global automotive driveline technology. Fast and Eaton jointly invested in the establishment of Fast Eaton (Baoji) Light Duty Transmission Co., Ltd., which is another new chapter in the development of cooperation between the two sides.

President Joao Faria said, China's commercial vehicle market is developing rapidly, and Fast has achieved great success in the rapid growing and increasingly demanding commercial vehicle market. The joint venture with Fast is another successful practice for both sides to conform to the development trend of the automotive industry, which marks the cooperation between the two sides into a higher stage of renewal.

The representatives of both parties signed the project agreement in the warm applause. The two parties announced that they would cooperate in the research, development, production, assembly, testing, sales and service of light duty commercial vehicle transmission, related transmission components and after-sales spare parts. At the same time, they have reached a consensus that both parties would cooperate as soon as possible with each other in light duty AMT and other light duty intelligent transmission into the joint venture.

Fast Eaton (Baoji) Light Duty Transmission Co., Ltd. is registered at Baoji High-tech Zone Automobile Industrial Park with registered capital of 200 million RMB, and our company accounts for 51% of the shares, Eaton for 49%, with an estimated total investment of nearly 2 billion RMB. After the completion of the project, the annual manufacturing capacity of 500,000 light duty commercial vehicle transmission will be formed. It is preliminarily estimated that the annual additional sales revenue will not be less than 2.2 billion RMB.