Dongfeng Motor : INSIDE INFORMATION

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

DONGFENG MOTOR GROUP COMPANY LIMITED*

東風汽車集團股份有限公司

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 489)

INSIDE INFORMATION

This is not an announcement of the financial results of Dongfeng Motor Group Company Limited*

(東風汽車集團股份有限公司) (the "Company").

This announcement is made pursuant to Part XIVA of the Securities and Future Ordinance and Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited to provide shareholders of the Company and the public with the extract of certain financial statements of Peugeot SA ("PSA") for the half year ended 30 June 2020.

PSA is a company organised under the laws of France as a société anonyme and listed on Euronext Paris Stock Exchange. PSA has released on 28 July. 2020 (French time) its audited consolidated financial statements for the half year ended 30 June 2020 (the "PSA Financial Statements") prepared in accordance with International Financial Reporting Standards as adopted for use in the European Union ("IFRS"), which included certain financial information of the Joint Control Equities(the "JCEs").

The following is an extract of the PSA Financial Statements containing certain financial information of the JCEs:

KEY FINANCIAL DATA OF EQUITY METHOD INVESTMENTS

The detailed data about the equity method investments are the following.

Dongfeng Motor Group cooperation agreement in the automotive activities

Groupe PSA and Dongfeng Motor Group have two joint ventures:

• Dongfeng Peugeot Citroën Automobile (DPCA), based in Wuhan, which is subject to joint control and is qualified for accounting purposes as a joint venture. It manufactures motor vehicles under the Dongfeng Peugeot, Dongfeng Citroën brands in China and Fengshen brand;
• Dongfeng Peugeot Citroën Automobile Sales Co (DPCS), based in Wuhan, over which the Group has significant influence. It markets in China the vehicles produced by DPCA.

The amounts below represent the combined financial statements of DPCA and DPCS.

Earnings items at 100%

		In million euros		In million yuans
	First-half 2020	First-half 2019	2019	First-half 2020	First-half 2019	2019
Revenue	386	921	1 781	2 999	7 053	13 595
Adjusted operating income (loss)	(156)	(110)	(315)	(1 206)	(853)	(2 441)
Operating income (loss)	(150)	(129)	(463)	(1 159)	(1 004)	(3 600)
Of which depreciation and impairment	(100)	(197)	(406)	(767)	(1 517)	(3 131)
Net financial income (loss)	(18)	(11)	(30)	(138)	(89)	(240)
Income taxes, including impairment	-	(184)	(272)	(3)	(1 439)	(2 120)
Profit (loss) of the period	(168)	(325)	(765)	(1 300)	(2 532)	(5 960)
Group's share in the profit (loss)
of the period	(84)	(163)	(383)
Income and expenses recognised
in equity, net	-	-	-
Other information
Net dividend received from the joint venture(s) by
PSA Group	-	-	-

IMPAIRMENT OF EQUITY METHOD INVESTMENTS IN THE AUTOMOTIVE BUSINESS

The companies accounted for using the equity method in the Automotive business include the companies in partnership with Dong Feng Motor Company Group, based in China.

The non-current assets of these companies are tested for impairment on the basis of the same principles as applicable to the Automotive business of Groupe PSA (cf. note 4.4). When there are indicators of impairment, the assets that are specific to the vehicle models are tested separately and all assets (including those that aren't specific to the models) are tested in aggregate at the level of each partnership. The Covid-19 crisis is an indicator of impairment which resulted in updating the tests at June 30, 2020.

Dongfeng

At 30 June 2020, impairment testing at the companies in partnership with the Dong Feng Motor Company Group resulted in the recognition of RMB 47 million in impairment losses (RMB 23 million in PSA share, i.e. €3 million). In 2019, an impairment loss for RMB 1,364 had been recorded (RMB 682 million in PSA share, i.e. €87 million).

In addition to these tests, Groupe PSA has performed an impairment test of its other equity method investments in the companies in partnership with the Dong Feng Motor Company Group. The recoverable amount was determined by evaluating the value in use based on cash flow forecasts. These forecasts are taken from the most recent estimations for 2020 to June 30, 2025 agreed by the partners. The terminal value is determined with reference to the data in the final years of the plan considering a growth rate to infinity of 2.6% (the same as in 2019). The future cash flows are discounted using an after-tax rate of 12.5% for 2020 to June 30, 2025 (12.5% in 2019) and 12.5% for the terminal value.

The sensitivity tests on volumes (-5% for the years 2021 to 2023), on change in operating profit (-0.5%) and on discount rate (+0.5%) would not result in the recognition of any additional impairment loss.

The above is an extract only. For details, please refer to the full text of the PSA Financial Statements which are disclosed on the website of PSA at www.groupe-psa.com

The financial information in this announcement for the JCEs is based on the financial data prepared by PSA. Shareholders and investors are advised to exercise caution when dealing in the shares of the Company.

By order of the board of directors

Zhu YanFeng

Chairman

Wuhan, the PRC, 3 August 2020

As at the date of this announcement, Mr. Zhu YanFeng, Mr. Li Shaozhu and Mr. You Zheng are the executive directors of the Company, the non-executive director of the Company is Cheng Daoran, Mr. Ma Zhigeng, and Mr. Chen Yunfei are the independent non-executive directors of the Company.

* For identification purposes only