Grand Baoxin Auto : VOLUNTARY ANNOUNCEMENT ENTRY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN CGA AND ARCFOX

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GRAND BAOXIN AUTO GROUP LIMITED

廣 匯 寶 信 汽 車 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1293)

VOLUNTARY ANNOUNCEMENT

ENTRY OF THE STRATEGIC COOPERATION AGREEMENT

BETWEEN CGA AND ARCFOX

This announcement is made by Grand Baoxin Auto Group Limited (the "Company"), together with its subsidiary, the "Group") on a voluntary basis to keep shareholders of the Company and potential investors informed of the latest business development of the Company.

THE STRATEGIC COOPERATION

The board of directors (the "Board") of the Company is pleased to announcement that on 12 April 2021, China Grand Automotive Services, Co., Ltd (廣匯汽車服務集團股份有限公司) ("CGA"), the controlling shareholder of the Company, had entered into a strategic cooperation agreement (the "Strategic Cooperation Agreement") with Beijing Langu Jihu Automobile Technology Co., Ltd.* (北京藍谷極狐汽車科技有限公司) ("ARCFOX"). The Strategic Cooperation Agreement was made pursuant to the favourable national policy in promoting the development and universal use of new energy vehicle and its potential market opportunities.

Under the Strategic Cooperation Agreement, ARCFOX and CGA will share their resources in establishing an integrated service system on traveling, electric charging, purchase of vehicles, networking, after-sales maintenance and living style in order to enhance customers' experience. In addition, ARCFOX and CGA intends to put the cooperation plans in place in five major cities in the People's Republic of China (the "PRC") in April 2021 and will further extend to 20 cities in the PRC at the end of the year in order to lay a solid foundation for long term cooperation.

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In view of the synergy between the Company and its controlling shareholder, CGA, in respect of the businesses and resources, the entry of the Strategic Cooperation Agreement by CGA with ARCFOX will be beneficial to the Group in achieving the goal of being market-oriented, integrating and optimizing existing resources, enhancing the coverage of the Group's new energy vehicle sales and service network, facilitating the construction of a comprehensive and diversified customer service system, which are in line with the Group's future strategies and long-term plans.

BACKGROUND OF CGA

CGA is a company established under the laws of the PRC, and its shares are listed on the Shanghai Stock Exchange (SSE Stock Code: 600297). CGA is a leading passenger vehicle dealership and automobile service group and a leading passenger vehicle finance leasing provider in the PRC primarily engaged in automobile sales and the whole life cycle after sales services such as sale of automobiles, passenger vehicle financing leasing, maintenance and service, commission agent services (including insurance and financing agent, agent for extension of automobile insurance, pre-owned automobile trading brokering services.

BACKGROUND OF ARCFOX

ARCFOX is a company established in the People's Republic of China and is a wholly-owned subsidiary of BAIC BluePark New Energy Technology Co. Ltd, a company listed on the Shanghai Stock Exchange (SSE Stock Code: 600733). ARCFOX principally engaged in businesses such as technology development, sales of vehicles and electric charging of motor vehicles.

Shareholders and potential investors of the Company should note that this announcement is made on a voluntary disclosure basis to allow the public to understand the Company's latest business development. The transactions contemplated under the Strategic Cooperation Agreement are still subject to the entering into of a definitive agreement, and may or may not materialise as described or at all. Should any definitive agreements be entered into, the Company will comply with the relevant requirements under the Listing Rules and make further announcement(s) in due course.

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Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

Grand Baoxin Auto Group Limited

LU Wei

Chairman

The PRC, 12 April 2021

As at the date of this announcement, the Company's executive directors are Mr. LU Wei, Mr. WANG Xinming, Mr. LU Ao and Ms. XU Xing; and the independent non-executive directors are Mr. DIAO Jianshen, Ms. LIU Yangfang and Mr. CHAN Wan Tsun Adrian Alan.

* For identification purpose only

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