Wuling Motors Holdings Limited provided earnings guidance for the year ended December 31, 2012. The board of directors of the company announced that the audited results of the group for the year ended December 31, 2012 will be affected by the fair value adjustments of the derivative financial instrument embedded with the outstanding Convertible Notes of the company as compared to last year and the share option expenses to be recognized for the granting of share options to the directors and certain employees of the group during the year. It is expected that a substantial reduction in the net profit of the group and the profit attributable to the equity holders of the company for the year ended December 31, 2012 will be reported as compared to the audited results reported for the financial year ended December 31, 2011.

Based on information currently available, the Board further inform that the substantial reduction in the net profit and the profit attributable to the equity holders of the company for the year ended December 31, 2012 was primarily due to: the gain derived from the changes in the fair value of the derivative financial instrument embedded with the outstanding Convertible Notes for the year December 31, 2012 was substantially lower than that recorded in last year; and the share option expenses amounting to approximately RMB 17,000,000 would be recognized for the granting of share options to the directors and certain employees of the group during the year. The Board also considers that the substantial reduction in gain and the share option expenses incurred as abovementioned are both non-cash items. As such, no significant adverse change is expected to impact on the operating cash flows of the group.