Nezha Automobile recently announced that it has reached a consensus with 134 core suppliers, jointly signed a debt-for-equity swap agreement of over 2 billion yuan, and simultaneously introduced a 10 billion baht (approximately 2.15 billion yuan) strategic credit line from Thai financial institutions. Among them, in response to the supplier's debt problem, Nezha plans to convert 70% of the supplier's debt into the equity of the parent company Hezhong Automobile, while 30% of the debt will be paid off in cash, and the financing process will be promoted by converting the debt as soon as possible.

Nezha Automobile also announced the initiative jointly issued by suppliers:

1. Support Nezha Automobile in completing debt-driven financing.Appreciate and support Nezha Automobile’s proactive attitude and measures to solve problems, and recognize and support the current debt reduction and next-step adjustment plan. We will fully support Nezha Automobile to complete a new round of financing as soon as possible and resume the company's normal production and operations.

2. Promote Nezha Auto to resume production and work as soon as possible.We will work together to actively promote the resumption of production and work of Nezha Automobile as soon as possible and spare no effort to ensure the stability and continuity of the supply chain.

3. Support Nezha Automobile to go overseas and seek better development together.Supplier partners will fully support Nezha Automobile to rely on the advantages of the "One Belt and One Road" and focus on the Southeast Asian and South American markets. Together with Nezha Automobile, through collective wisdom and efforts, resource sharing and complementary advantages, we can achieve a win-win situation in the global market.

4. Establish long-term and stable close cooperative relations.Supplier partners have full confidence in the future development of Nezha Automobile, value their cooperation with Nezha Automobile, and are committed to establishing a long-term and stable partnership.

In addition, Nezha Automobile also revealed the latest domestic financing progress. Nezha E-round financing, led by 3 billion yuan, was originally scheduled to be received in March, but was delayed to April due to risks, corresponding to half of the equity of Nezha Automobile’s parent company.