Earnings release
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1 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. ʮ̡ BAIC MOTOR CORPORATION LIMITED * (A joint stock company incorporated in the People ’s Republic of China with limited liability) (Stock Code: 1958) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board (the “ Board ”) of directors (the “ Directors ”) of BAIC Motor Corporation Limited (the “Company”) is pleased to announce the unaudited interim results of the Company and its subsidiaries (collectively referred to as the “Group” or “we”) for the six months ended 30 June 2026 (the “First Half of 2026” or the “Reporting Period”) together with the comparative figures for the corresponding period in 2025. The results have been prepared in accordance with the International Accounting Standard 34, “Interim Financial Reporting” issued by the International Accounting Standards Board and the disclosure requirements under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”). The audit committee of the Board (the “Audit Committee”) and Ernst & Young, the external auditor of the Group, have reviewed the unaudited condensed consolidated interim financial information.
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2 INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30 June 2026 For the six months ended 30 June Note 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 REVENUE 5 57,725,704 82,398,455 Cost of sales (51,916,128) (70,477,919) Gross profit 5,809,576 11,920,536 Other gains and losses 488,073 205,248 Selling and distribution expenses (3,152,865) (3,883,378) Administrative expenses (2,065,886) (2,023,801) Impairment losses on financial assets, net (31,692) (16,348) Finance cost, net (89,512) (13,022) Share of profits and losses of: Joint ventures (512,343) (188,114) Associates 86,274 153,932 PROFIT BEFORE TAX 6 531,625 6,155,053 Income tax expense 7 (877,308) (2,380,665) (LOSS)/PROFIT FOR THE PERIOD (345,683) 3,774,388 Attributable to: Owners of the parent (1,593,893) 359,961 Non-controlling interests 1,248,210 3,414,427 (345,683) 3,774,388 (LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT Basic and diluted (expressed in RMB) 9 (0.20) 0.04
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3 INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2026 For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 (LOSS)/PROFIT FOR THE PERIOD (345,683) 3,774,388 OTHER COMPREHENSIVE (LOSS)/INCOME Other comprehensive (loss)/income that may be reclassified to profit or loss in subsequent periods: Cash flow hedges: (Losses)/gains on cash flow hedges, net of tax (120,799) 393,215 Exchange difference: Exchange differences on translation of foreign operations (67,867) 75,482 Share of other comprehensive loss of joint ventures (1,712) – Net other comprehensive (loss)/income that may be reclassified to profit or loss in subsequent periods (190,378) 468,697 Other comprehensive loss that will not be reclass ified to profit or loss in subsequent periods: Equity investments designated at fair value through other comprehensive income: Changes in fair value (1,751,042) (414,881) OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD, NET OF TAX (1,941,420) 53,816 TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD (2,287,103) 3,828,204 Attributable to: Owners of the parent (3,470,161) 194,621 Non-controlling interests 1,183,058 3,633,583 (2,287,103) 3,828,204
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4 INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2026 Note 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 NON-CURRENT ASSETS Property, plant and equipment 42,843,123 43,401,247 Investment properties 200,465 207,799 Land use rights 6,194,330 6,276,392 Intangible assets 13,318,194 13,335,438 Investments in joint ventures 3,505,144 4,021,464 Investments in associates 7,416,660 7,421,076 Equity investments designated at fair value through other comprehensive income 6,350,162 8,512,517 Financial assets at fair value through profit or loss 329,882 166,989 Prepayments, other receivables and other assets 315,926 333,307 Deferred tax assets 6,154,547 6,894,264 Total non-current assets 86,628,433 90,570,493 CURRENT ASSETS Inventories 22,180,703 21,604,473 Trade and bills receivables 10 15,457,821 25,603,801 Advances to suppliers 483,156 244,381 Prepayments, other receivables and other assets 4,922,206 2,918,527 Pledged deposits 1,530,199 2,197,100 Cash and cash equivalents 10,521,402 23,366,389 Total current assets 55,095,487 75,934,671 CURRENT LIABILITIES Lease liabilities 152,954 164,018 Trade and bills payables 11 33,935,073 43,668,332 Other payables and accruals 16,880,034 25,720,387 Contract liabilities 1,049,320 2,126,888 Interest-bearing bank and other borrowings 5,318,835 5,934,723 Tax payable 151,422 483,049 Provision 1,746,205 1,784,924 Total current liabilities 59,233,843 79,882,321
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5 Note 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 NET CURRENT LIABILITIES (4,138,356) (3,947,650) TOTAL ASSETS LESS CURRENT LIABILITIES 82,490,077 86,622,843 NON-CURRENT LIABILITIES Lease liabilities 163,514 224,876 Deferred income 1,727,589 1,880,174 Interest-bearing bank and other borrowings 3,347,800 1,986,800 Deferred tax liabilities 23,349 436,720 Provision 4,682,071 5,009,265 Total non-current liabilities 9,944,323 9,537,835 Net assets 72,545,754 77,085,008 EQUITY Equity attributable to owners of the parent Share capital 12 8,015,338 8,015,338 Reserves 46,459,123 49,929,284 54,474,461 57,944,622 Non-controlling interests 18,071,293 19,140,386 Total equity 72,545,754 77,085,008 INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued) As at 30 June 2026
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6 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 1 GENERAL INFORMATION BAIC Motor Corporation Limited (the “ Company ”), together with its subsidiaries (collectively referred to as the “Group”), are principally engaged in the manufacturing and sales of passenger vehicles, engines and auto parts in the People’s Republic of China (the “PRC”). The address of the Company’s registered office is A5-061, Unit 101, 5th Floor, Building No. 1, Courtyard No. 99, Shuanghe Street, Shunyi District, Beijing, the PRC. The Company was incorporated in the PRC on 20 September 2010 as a joint stock company with limited liability under Company Law of the PRC. The immediate parent company of the Company is Beijing Automotive Group Co., Ltd. (“BAIC Group”), which is beneficially owned by the State-owned Assets Supervision and Administration Commission of People’s Government of Beijing Municipality. The Company’s ordinary shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 19 December 2014. This interim condensed consolidated financial information (“ Condensed Financial Information ”) is presented in thousands of Renminbi Yuan (“ RMB’000”), unless otherwise stated, and is approved for issue by the Board of Directors on 28 August 2026. This Condensed Financial Information has not been audited. 2 BASIS OF PREPARATION The Condensed Financial Information for the six months ended 30 June 2026 has been prepared in accordance with the International Accounting Standard (the “ IAS”) 34 Interim Financial Reporting. The Condensed Financial Information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2025. Going concern As at 30 June 2026, the current liabilities of the Group exceeded its current assets by approximately RMB4,138 million. In respect of the debt obligations and working capital requirements, management has thoroughly considered the Group’s available sources of the funds as follows: • the Group consistently generates cash inflows from its operating activities; and • undrawn short-term and long-term banking facilities of approximately RMB39,293 million as at 30 June 2026. Based on the above considerations, the directors of the Company are of the opinion that the Group has sufficient available financial resources to meet or refinance its working capital requirements as and when they fall due. As a result, these financial statements have been prepared on a going concern basis.
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7 3 CHANGES IN ACCOUNTING POLICIES The accounting policies adopted in the preparation of the Condensed Financial Information are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following amended IFRS Accounting Standards for the first time for the current period’s financial information. Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to IFRS Accounting Standards – Volume 11 Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 The nature and impact of the amended IFRS Accounting Standards are described below: Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments clarify that a financial asset is derecognised when the entity’s rights to the contractual cash flows expire or are transferred, while a financial liability is derecognised on the settlement date. The amendments introduce an accounting policy option to derecognise a financial liability that is settled through an electronic payment system before the settlement date if specified criteria are met. The amendments clarify how to assess the contractual cash flow characteristics of financial assets with environmental, social and governance and other similar contingent features. Moreover, the amendments clarify the requirements for classifying financial assets with non-recourse features and contractually linked instruments. The amendments also include additional disclosures for investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. Since the Group’s accounting policy for the derecognition of financial assets and liabilities in prior years aligned with the amendments and the Group did not have the financial assets that were addressed by the amendments, the amendments did not have any impact on the Condensed Financial Information. The Group will provide additional disclosures for its equity investments designated at fair value through other comprehensive income in the Group’s consolidated financial statements for the year ending 31 December 2026. Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity clarify the application of the “own-use” requirements for in-scope contracts and amend the designation requirements for a hedged item in a cash flow hedging relationship for in-scope contracts. The amendments also include additional disclosures that enable users of financial statements to understand the effects these contracts have on an entity’s financial performance and future cash flows. As the Group did not have any contracts that are in the scope of the amendments, the amendments did not have any impact on the Condensed Financial Information. Annual Improvements to IFRS Accounting Standards – Volume 11 set out narrow scope amendments to IFRS 1, IFRS 7 (and the accompanying Guidance on implementing IFRS 7), IFRS 9, IFRS 10 and IAS 7. The amendments include clarifications, simplifications, corrections or changes to improve consistency in the corresponding IFRS Accounting Standards. The amendments did not have any impact on the Condensed Financial Information.
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8 4 OPERATING SEGMENT INFORMATION All business operations of the Group are related to the production and sales of automobiles and auto parts, research and development, and related technical services. Accordingly, the Group’s performance is comprehensively reviewed under a single business category. Geographical information The Group is domiciled in the PRC. The percentage of its revenue from external customers residing in the PRC is approximately 98.8% for the six months ended 30 June 2026 (six months ended 30 June 2025: 96.4%). As at 30 June 2026, the percentage of the Group’s non-current assets, other than financial instruments and deferred income tax assets, located in the mainland of the PRC is approximately 98.5% (31 December 2025: 98.6%). Information about major customers Revenue from continuing operations of approximately RMB9,405,870 thousand for the six months ended 30 June 2026 (six months ended 30 June 2025: RMB8,911,592 thousand) was derived from a single customer, including sales to a group of entities which are known to be under common control with that customer. 5 REVENUE An analysis of revenue is as follows: For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Revenue from contracts with customers 57,681,421 82,359,285 Revenue from other sources Lease 44,283 39,170 Total 57,725,704 82,398,455
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9 Revenue from contracts with customers Disaggregated revenue information For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Types of goods or services Sales of vehicles 52,189,360 79,051,240 Others 5,492,061 3,308,045 Total 57,681,421 82,359,285 Geographical markets Mainland China 57,050,185 80,249,568 Other countries/regions 631,236 2,109,717 Total 57,681,421 82,359,285 Timing of revenue recognition Goods transferred at a point in time 57,200,479 81,646,023 Services transferred over time 480,942 713,262 Total 57,681,421 82,359,285 6 PROFIT BEFORE TAX The Group’s (loss)/profit before tax from continuing operations is arrived at after charging/(crediting): For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Depreciation and amortisation 3,843,573 4,281,433 Employee benefit costs 1,868,229 2,138,710 Warranty expenses 401,851 1,199,577 Impairment losses on financial assets, net 31,692 16,348 Impairment of non-financial assets 1,068,960 764,101 Foreign exchange (gains)/losses (228,323) 92,755 Losses/(gains) on forward foreign exchange contracts with fair value through profit or loss 99,256 (136,253) Losses on disposals of property, plant and equipment 3,625 532 Government grants (298,573) (163,172)
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10 7 INCOME TAX According to the New and High-Technology Enterprise Certificate issued by relevant government regulatory bodies, certain entities of the Group in the PRC were recognized as High and New Technology Enterprises with preferential income tax rate of 15%. Except for the aforementioned enterprises and certain overseas subsidiaries which are subject to statutory income tax rates in respective tax jurisdictions, provision for income tax is calculated based on the statutory income tax rate of 25% for each of the periods ended 30 June 2026 and 2025 on the assessable income of respective Group entities in accordance with relevant PRC enterprise income tax rules and regulations. For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Current income tax 95,638 1,574,179 Deferred income tax 781,670 806,486 Total tax charge for the period from continuing operations 877,308 2,380,665 8 DIVIDENDS The Board of Directors of the Company does not recommend the payment of any interim dividends for the six months ended 30 June 2026 (six months ended 30 June 2025: Nil). 9 (LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the parent by the weighted average number of ordinary shares in issue during the period. For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 (Loss)/profit attributable to ordinary shareholders of the parent (1,593,893) 359,961 Weighted average number of ordinary shares in issue (thousand) 8,015,338 8,015,338 (Loss)/earnings per share for profit attributable to ordinary shareholders of the parent for the period (RMB) (0.20) 0.04 Note: During the six months ended 30 June 2026 and 2025, there were no potential dilutive ordinary shares and diluted earnings per share was equal to basic earnings per share.
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11 10 TRADE AND BILLS RECEIVABLES Trade receivables 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Trade receivables, gross (a) 10,493,568 14,902,268 Less: allowance 1,521,231 1,340,870 Total 8,972,337 13,561,398 (a) The majority of the Group’s sales are on credit. A credit period may be granted in respect of sales to customers with good credit history and long-established relationship with the Group. The credit period is generally 15 days, extending up to six months for major customers. Each customer has a maximum credit limit. The aging analysis of trade receivables based on invoice date is as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Within 1 year 6,669,531 10,861,903 1 to 2 years 200,336 243,257 2 to 3 years 18,215 44,664 Over 3 years 3,605,486 3,752,444 Total 10,493,568 14,902,268 Bills receivables 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Bills receivables measured at (b) – FVOCI 1,138,982 1,338,008 – Amortised cost 5,381,953 10,752,758 Less: allowance 35,451 48,363 Total 6,485,484 12,042,403
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12 (b) The amounts of bills receivables pledged as collateral for bills payables issued by banks as at the respective ends of the reporting period are as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Bills receivables 4,153,266 7,390,215 11 TRADE AND BILLS PAYABLES 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Trade payables 21,855,519 32,371,895 Bills payable 12,079,554 11,296,437 Total 33,935,073 43,668,332 An aging analysis of trade payables as at the end of the reporting period, based on the transaction date, is as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Within 1 year 21,815,025 32,336,209 1 to 2 years 9,115 2,166 2 to 3 years 1,628 4,326 Over 3 years 29,751 29,194 Total 21,855,519 32,371,895 12 SHARE CAPITAL Number of ordinary shares of RMB1 each (thousand) RMB’000 At 1 January 2026 and 30 June 2026 (Unaudited) 8,015,338 8,015,338 At 1 January 2025 and 31 December 2025 (Audited) 8,015,338 8,015,338
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13 BUSINESS OVERVIEW I. MAJOR BUSINESS OPERATIONS The Group is principally engaged in the research and development, manufacturing, sales and after- sales services of passenger vehicles, production of core parts and components of passenger vehicles, car financing, international businesses and other related businesses. It keeps optimizing its industry chain and enhancing its brands strength. Passenger Vehicles The Group is accelerating its transformation and upgrade towards new energy and intelligence. Its passenger vehicle product lineup covers fuel and new energy models, and its business is carried out through four brands: Beijing Brand, Beijing Benz, Beijing Hyundai and Fujian Benz. 1. Beijing Brand Beijing Brand, our proprietary brand, covers sedans, SUVs and off-road vehicles in both oil- powered and new energy models, providing users with a full range of travel experiences. Beijing Brand adheres to technological progress, product upgrading, and model innovation, building a user-centric enterprise around the concept of “building high-quality vehicles for users”. In terms of off-road vehicle electrification, through the two-way integration of off-road capabilities and new energy, we empowered off-road vehicles with electrification; in terms of off-road vehicle intelligence, relying on BAIC “Yuanjing” intelligence, we continuously improved the intelligence level of off-road vehicles and provided consumers with a full- scenario travel solution from urban to off-road scenarios. Drawing on its technical heritage as the “inventor of Chinese off-road vehicles”, Beijing Brand has continuously advanced brand and product innovation, and made every effort to develop off- road and light off-road products to address the diversified needs of different consumer bases. BJ30 Traveler targets the entry-level light off-road vehicle market, while BJ40e REEV aims to be the king of extended-range hard-core SUVs. BJ40 Fuel is positioned as a “full-scenario professional off-road SUV”, achieving off-road accessibility for all. Looking ahead, Beijing Brand will continue to focus on core technology innovation and comprehensively upgrade its product matrix covering the three powertrain categories of fuel, all-electric, and hybrid, deploying five product series to create over ten diversified vehicle models. Centered on user needs, it leverages its solid product strength, cutting-edge proprietary technology, and attentive full-lifecycle service to create a safe, reliable, intelligent, convenient, and diverse high-quality mobility experience for consumers.
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14 2. Beijing Benz Beijing Benz Automotive Co., Ltd. (“ Beijing Benz ”) is a subsidiary of the Company. The Company holds 51.0% equity interest of Beijing Benz, while Mercedes-Benz Group AG (“Mercedes-Benz Group”) and its wholly-owned subsidiary, Mercedes-Benz China Investment Co., Ltd. (ʮ̡), together hold another 49.0% equity interest in Beijing Benz. Beijing Benz commenced the manufacturing and sales of passenger vehicles of Mercedes-Benz brand in 2006. At present, Beijing Benz has become a joint venture with Mercedes-Benz, that operates front- wheel drive, rear-wheel drive and electric vehicle platforms in the world, as well as its own engine plant and power battery factories. It also exports core engine components and complete engines, making it an important part of the Mercedes-Benz global production network. On this basis, the models currently produced by Beijing Benz mainly include the all-electric GLC, all- electric CLA, E-Class, C-Class, and GLC SUV. At the historic turning point of the automotive industry from fuel to electric power, Beijing Benz has responded proactively and continuously accelerated its transformation towards “electrification, digitization and low-carbonization”. In terms of its electric product matrix, Beijing Benz has launched a total of 7 all-electric models into production. In the future, it will develop more “next-generation luxury” and “core luxury” models based on the all-new Mercedes-Benz Modular Architecture (MMA) platform and the MB.EA all-electric platform. 3. Beijing Hyundai Beijing Hyundai Motor Co., Ltd. (“ Beijing Hyundai ”) is a joint venture of the Company. The Company holds 50.0% equity interest in Beijing Hyundai through its subsidiary BAIC Investment Co., Ltd. (“ BAIC Investment ”), while Hyundai Motor Company holds another 50.0% equity interest in Beijing Hyundai. Beijing Hyundai has been manufacturing and selling Hyundai passenger vehicles since 2002. Beijing Hyundai has established an industry-leading quality operation system and has nationwide leading production and manufacturing plants. It produces and sells a range of compact and mid-size sedans and SUVs, including the Elantra CN7, the 11th-generation Sonata, the all-new Tucson L, the MUFASA (upgraded ix35), the fifth-generation Santa Fe, the Custo, and the all-electric SUV EO, fully satisfying the needs of different consumers.
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15 4. Fujian Benz Fujian Benz Automotive Co., Ltd. (“ Fujian Benz ”) is a joint venture of the Company. The Company holds 35.0% equity interest in Fujian Benz, and has an acting-in-concert agreement with Fujian Motor Industry Group Co., Ltd., which holds another 15.0% of its equity, regarding the operation, management and other matters of Fujian Benz, as well as the exercise of powers by the directors appointed by Fujian Motor Industry Group Co., Ltd. Mercedes-Benz Vans Hong Kong Limited holds the remaining 50.0% equity interest of Fujian Benz. Fujian Benz commenced the manufacturing and sales of multi-purpose passenger vehicles of Mercedes-Benz brand in 2010. At present, Fujian Benz stays on the leading edge in the field of joint venture premium business purpose vehicles, with production and sales of Mercedes- Benz V-Class vehicles and New Vito products. At the same time, it is steadily advancing the construction of the new energy commercial vehicle platform in China to achieve a leapfrog upgrade of its product matrix. Core Parts and Components for Passenger Vehicles In addition to manufacturing of vehicles, we also produce engines, powertrain, power batteries and other core parts and components for passenger vehicles through the manufacturing bases of Beijing Brand, Beijing Benz and Beijing Hyundai. We rely on operating entities such as BAIC Motor Powertrain Co., Ltd. (“ Powertrain ”) to carry out the research and development and manufacturing of core automotive power components such as engines, range extenders, transmissions, and new energy reducers. The products are mainly assembled in our self-produced vehicles and various passenger vehicle models within the BAIC Group system, covering both military and civilian markets, and are exported globally with the complete vehicles. In recent years, Powertrain has comprehensively promoted the strategic transition towards hybrid and new energy, adopting a dual-track approach of independent research and development and joint development. It has overcome multiple key technical barriers and has now formed a product matrix of two major series and more than ten fuel and hybrid engines and range extender assemblies. In terms of expanding the supporting market, key components have achieved mass supply to automakers such as BYD Company Limited and Chery Automobile Co., Ltd.. Core engine products are supplied to external customers such as leading domestic industrial-grade heavy- lift unmanned helicopter companies, enabling applications in multiple fields and scenarios. Beijing Benz currently has the first power battery factory outside of Germany and two engine factories, producing EB5 power batteries, M254 and other engine products. The Beijing Benz EB5 power battery is compatible with multiple models on the MMA and MB.EA-M all-electric platforms. It features large capacity, ultra-fast charging, long range, low energy consumption, and high safety, making it a core component of the new generation of domestically produced luxury all- electric models from Mercedes-Benz.
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16 Beijing Hyundai has been manufacturing engines since 2004. The products currently produced are mainly the Gamma II series 1.5/1.6 displacement engines, which are industry-leading in terms of technology and power. They are mainly used in Hyundai-branded passenger vehicles manufactured by Beijing Hyundai. Car Financing We conduct car financing and automobile aftermarket-related businesses for the Beijing Brand, Mercedes-Benz brand, and Hyundai brand through associates and joint ventures, including BAIC Group Finance Co., Ltd., Mercedes-Benz Leasing Co., Ltd., Beijing Hyundai Auto Finance Company Limited., and BH Leasing Co., Ltd., and continuously promote the rapid development of car financing businesses through methods including capital investment and business cooperation. In respect of car financing business, we have conducted group strategic cooperation with various automobile financial companies, commercial banks and finance lease companies, offering clients a great variety of financial products covering all car models for sale and meeting different customer demands. International Business We engage in international marketing business through our associate, BAIC International Development Co., Ltd. (“ BAIC International ”). BAIC International has currently established a passenger vehicle brand matrix including ARCFOX, BAIC, etc. Its products cover five major categories: SUV, sedan, off-road vehicle, MPV, and pickup, spanning the mid-to-high-end and mainstream mass-market segments. In recent years, BAIC International has accelerated its localization strategy. Regional companies in Mexico, the Gulf, Brazil, and Europe are now operational. The establishment of new regional companies in Malaysia and Thailand is proceeding in an orderly manner. Eight overseas KD 1 projects have been put into production, and 16 representative offices continue to enhance local market operations. II. INDUSTRY DEVELOPMENT IN THE FIRST HALF OF 2026 In the First Half of 2026, the automotive industry showed significant structural differentiation. In particular, new energy vehicles continued their growth momentum, with rising penetration rates, accelerating the transformation of the market structure; vehicle exports maintained strong growth, serving as a key hedge against fluctuations in domestic demand; and the market share of Chinese- branded passenger vehicles further increased, remaining at a high level. According to data from the CAAM, sales of passenger vehicles in the First Half of 2026 reached 12.72 million units, a year-on- year decrease of approximately 6%; and exports of passenger vehicles amounted to 4.432 million units, a year-on-year increase of 71.7%. 1 Knocked-down
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17 In terms of industry policy, automotive policies in the First Half of 2026 balanced consumption promotion with industrial quality improvement. Policies such as halving the purchase tax, trade-in incentives, and promoting new energy vehicles in rural areas were implemented, while circulation reform measures relaxed car purchase restrictions and revitalised the second-hand car market. On the industrial side, efforts were made to improve the power battery recycling and traceability system, accelerate the formulation of standards for intelligent connected vehicles and vehicle safety, and support the research and development of cutting-edge technologies. The policy focus has shifted from supporting sales volume to reshaping the industrial ecosystem, guiding the industry’s transformation towards electrification, intelligence, and low-carbon development to offset the pressure on domestic demand recovery. III. OPERATIONAL PERFORMANCE OF THE GROUP IN THE FIRST HALF OF 2026 In the First Half of 2026, the Group was fully committed to implementing its “three-year leap forward action” strategy. Focusing on the “domestic and international” dual strategic markets and star product portfolios, we continued to optimize operational efficiency and steadily improve business quality. Adhering to intensified efforts in products with multiple technical routes, our products cover diverse categories such as fuel, all-electric, hybrid, extended range and off-road vehicles. During the Reporting Period, Beijing Brand, Beijing Benz, Beijing Hyundai and Fujian Benz achieved a total wholesale sales volume of 328.9 thousand vehicles. Deepening the New Energy Strategic Transformation We remained focused on the core development of new energy and intelligence, closely tracking the industry’s competitive landscape and the differentiated needs of users in various niche segments, while continuously enriching our new energy product matrix. During the Reporting Period, Beijing Brand launched a long-range edition of the BJ40e REEV, achieving dual growth in sales and market share. Two versions of the B-class all-electric commercial sedan BEIJING EU8 were launched simultaneously, precisely targeting the all-electric commercial sedan segment. At Beijing Benz, the first model built on the all-new Mercedes-Benz MB.EA-M all-electric platform – the all-new all-electric GLC – entered production, further expanding the all-electric lineup. Beijing Hyundai launched its new energy brand IONIQ (Ў̵ὄ) and its first model, the IONIQ V, embarking on a new journey of comprehensive expansion into the new energy vehicle segment. Fujian Benz steadily advanced the VAN.EA project for its electrification transformation. Adhering to the “Off-road” Feature Beijing Brand adhered to its “off-road” identity, with its dual-track strategy of professional hard- core and light off-road achieving initial results. The brand’s end-user insurance registration volume achieved structural growth, and it maintained a stable position amidst market fluctuations. During the Reporting Period, terminal sales of the core “boxy off-road vehicle” increased by 24% year- on-year. The sales growth engine BJ30 set a new record for single-month sales since its launch and gained widespread recognition in the light off-road market. The major product BJ40 gained a
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18 competitive advantage in the professional hard-core off-road market by leading in both sales volume and growth rate. At the same time, focusing on customer needs, the Company launched brand- refreshing models: the new “tactical boxy vehicle” – Beijing 81VJ, created through the BIP (Build in Public) co-creation model, debuted at the Beijing Auto Show and began pre-sales. The new B70 City Hunter was launched, targeting new growth in the larger high-end SUV market. Promoting “AI+ Digital Intelligence” to Empower Comprehensive Transformation The “AI+ digital intelligence” transformation is a key engine of the “Three-year Leap Forward” strategy. Guided by the positioning of “practical empowerment and full-domain coverage”, the Group carried out an “AI+ digital intelligence” transformation by integrating online and offline approaches. Through a dual-track approach of case-based teaching and practical exploration, the Company has gradually established a “business + AI” systems thinking among all staff, promoting the deep integration of AI intelligent assistance into the entire value chain of production and operation, and solidifying the results of these empowerment efforts. Beijing Benz built a digital hub with an AI portal and created four major intelligent tool matrices that cover the entire business chain of analysis, communication, creation, and execution, achieving a dual improvement in organizational capabilities and operational efficiency. Beijing Hyundai has deeply integrated AI technology into key tasks such as new energy transformation, cost reduction and efficiency improvement, and brand enhancement, accelerating the implementation of its “AI+ digital intelligence” strategy. Accelerating the Expansion of Overseas Markets In the First Half of 2026, Beijing Brand iterated its strategic planning for overseas markets, while accelerating the rollout of its localization strategy. The operation registration and establishment plans for several overseas companies were completed. Meanwhile, by focusing on core base markets in the Middle East and North Africa, a breakthrough in sales was achieved. The overseas product matrix was further improved and the planning for different categories of application ecosystems was completed. Beijing Hyundai’s export business was in a period of rapid growth, achieving incremental breakthroughs across all vehicle models, business formats, and market coverages. In the First Half of 2026, export sales of Beijing Hyundai reached 47 thousand units, a year-on-year increase of 15.8%, with overseas markets becoming a new engine for sales growth. Innovating Marketing Models Through brand-sales synergy, Beijing Brand achieved an efficient conversion of brand visibility into market value. Focusing on the two core models, BJ40 and BJ30, Beijing Brand conducted systematic communications around key milestones including the Spring Festival Gala, auto shows, and production-sales achievements, comprehensively enhancing brand popularity and industry influence. A long-term customer acquisition matrix was built through new media communication models. Beijing Benz explored new models of manufacturer-dealer cooperation and vigorously
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19 promoted the transformation towards “integrated direct sales”. It bridged user needs directly with production, and gradually established a long-term and stable pricing system. Beijing Hyundai leveraged intelligent tools to reduce costs and increase efficiency in content production, accumulate high-quality sales leads, and empower end-user sales in all aspects. It continued to promote the transformation of customer services, focusing on optimizing the online O2O direct sales platform to achieve an end-to-end digital closed loop from car selection and test drives to contract signing, creating a one-stop transparent online service platform. Extending Green and Low-Carbon Development to the Entire Value Chain Centering on energy conservation and emission reduction, new energy technology application and energy structure optimization, we have continuously promoted operational carbon reduction and collaborative carbon reduction across the industrial chain. We improved resource utilization efficiency while reducing energy consumption and carbon emissions, thereby driving the high- quality corporate development. Focusing on cost reduction, efficiency improvement and green and low-carbon development, Beijing Brand has extended its carbon reduction efforts from the source design stage throughout the entire value chain. With the aim of building a “green and clean factory”, Beijing Hyundai vigorously promoted cleaner and more energy-efficient production processes. Fujian Benz actively responded to the national dual-carbon goals, promoting a full-chain low-carbon transformation by relying on its national-level green factory system. Sales network The Group has always attached great importance to customer interests, strived to improve its product and service system, and is committed to ensuring its product distributors and customers receive timely, efficient, accurate and high-quality service. Each of our brands has independent sales channels. During the Reporting Period, Beijing Brand continued to broaden sales channels and increase its brand penetration rate in cities. In the First Half of 2026, it focused on precise expansion along the southeast coast, innovating store formats to increase coverage. The dealer system was strengthened through a three-in-one approach of “strict governance, layered training, and precise empowerment” to promote a dual leap in both scale and quality of the channels. Beijing Benz continued to advance its network upgrade program, and constantly enhanced its offline touchpoints by upgrading their image, optimizing functions, redesigning processes and improving service teams, which helped elevate the customer experience and dealer operational efficiency to a new level. At the same time, it focused on digital marketing based on data and new media, and strengthened dealer training and talent development to digitally empower retail. By focusing on key cost areas, it continued to improve the quality and efficiency of its dealers. Beijing Hyundai actively optimized its network layout and maintained the stability of existing channels. It formulated differentiated and lightweight dealer recruitment policies, and actively explored potential channels, with 11 new stores opened and 11 under construction in the First Half of 2026. Concurrently, it focused on strengthening channel foundations and enhancing comprehensive operational capabilities at dealerships, including customer acquisition, conversion, and service.
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20 Production facilities We have specialised production facilities to manufacture and assemble products. All of our production facilities are equipped with flexible production lines. This not only enables us to flexibly change production plans and respond quickly to changes in market demand, but also reduces our capital expenditures and operating costs. In order to ensure excellent product quality, we have established an advanced digital and intelligent quality management system in Beijing Brand’s plants. The system is deeply integrated into the entire vehicle design and manufacturing process, achieving precise management and control of core processes and data-driven decision-making and enabling continuous improvement in product quality through the precision of digital execution. Guided by the principle of “digitalization, flexibility, effectiveness and sustainability”, Beijing Benz continuously builds Mercedes-Benz’s most comprehensive production base in the world to continuously promote its own high-quality development. Beijing Benz has established a quality centre based on Mercedes-Benz Group’s global standards to ensure that every unit of Mercedes-Benz vehicles is up to its globally unified standards and quality management system. Upholding the production philosophy of “greenness, quality, intelligence and efficiency”, Beijing Hyundai promotes digital intelligence transformation and relies on intelligent production equipment, international management systems and an automation rate of over 90% to fully ensure accuracy and manufacture high-quality products. In the meantime, it reasonably uses flexible production plans and mixed model production, driving a leap in manufacturing efficiency with digital intelligence power to effectively reduce manufacturing costs. Employees As at 30 June 2026, the Group had a total of 34,338 employees (as at 31 December 2025: 35,298). IV. OUTLOOK FOR THE SECOND HALF OF 2026 Looking ahead to the second half of 2026, the intensive introduction of industrial policies is driving a fundamental shift in the industry’s logic – from short-term stimulus dominated by “new car purchase subsidies” in the past to the construction of a medium-to-long-term ecosystem covering the entire automotive industry chain. The internal and external environment for industry operation remains challenging: sharp rises in the prices of upstream core raw materials continue to squeeze the profit margins of vehicle manufacturers. In overseas markets, trade barriers continue to escalate and competition for going overseas is intensifying, presenting both opportunities and risks in the international market. In a complex market environment, how to balance domestic cost pressures with overseas market expansion will be a key issue for auto companies. In the second half of 2026, the Group will meet the severe challenges with a competitive strategy of enhancing the value of the entire system. We will maintain strategic focus, keep abreast of market changes, continue to reform and innovate, make every effort to enhance system capabilities and market share, continue to expand the sales structure of high-value and high-volume products, and form a synergy for volume growth in various segmented markets. Beijing Brand will successively
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21 launch luxury off-road and light off-road sub-brands, consolidating its leading advantages with core technologies. Relying on a series of new flagship products such as the new energy intelligent luxury off-road SUV Taitan 700, the Company will empower and enrich its product line with intelligent and electrified technologies and drive growth in sales volume and scale. We will consolidate our sales foundation through meticulous efforts, with the BJ30 and BJ40 extended-range models strengthening the product line and serving as a cornerstone for our sales volume. Beijing Benz will accelerate the comprehensive implementation of high-quality projects, provide full support for the launch of several new models such as the all-new all-electric GLC, to further consolidate and expand its leading position in the domestic high-end luxury car market. Beijing Hyundai will stabilize its sales rhythm and continue to expand its exports to achieve its full-year goal. Fujian Benz will maintain stable operations and steadily advance its quality and efficiency enhancement initiatives, continuing to strive towards its goal of “becoming a respected leader in the premium business vehicle market in the new era”.
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22 MANAGEMENT DISCUSSION AND ANALYSIS Revenue and Net Profit Attributable to Equity Holders of the Company The Group is principally engaged in the research and development, manufacturing, sales and after-sales services of passenger vehicles. The above businesses have brought sustained and stable revenue to the Group. The Group achieved revenue of RMB57,725.7 million in the First Half of 2026, representing a decrease of 29.9% compared to the same period in 2025, primarily due to the impact of price competition and a decline in sales. The Group recorded a net loss attributable to equity holders of the Company of RMB1,593.9 million in the First Half of 2026, turning from profit to loss compared with the same period of 2025. The Group recorded basic loss per share of RMB0.20 in the First Half of 2026. Gross profit The Group achieved a gross profit of RMB5,809.6 million in the First Half of 2026, representing a decrease of 51.3% compared to the same period in 2025, mainly due to the impact of price competition and sales decline. Working Capital and Financial Resources The Group usually satisfies its daily working capital requirements through self-owned cash and borrowings. The Group recorded a net cash outflow from operating activities of RMB8,232.8 million in the First Half of 2026, compared with a net cash inflow of RMB1,961.0 million in the same period of 2025. The swing from net inflow to net outflow during the Reporting Period was mainly attributable to the decrease in net cash inflow generated from operating activities. As at 30 June 2026, the Group had cash and cash equivalents of RMB10,521.4 million, bills receivable of RMB6,485.5 million, bills payable of RMB12,079.6 million, outstanding borrowings of RMB8,666.6 million, unused short-term and long-term bank credit lines of RMB39,292.6 million and commitments for capital expenditure of RMB10,021.4 million. Capital Structure The Group maintained a reasonable combination of equity and debt to ensure an effective capital structure. The Group’s asset-liability ratio (total liabilities/total assets) was 48.8% as at 30 June 2026, representing a decrease of 4.9 percentage points from 31 December 2025 (the “end of 2025”).
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23 The Group’s net gearing ratio ((total borrowings less cash and cash equivalents)/(total equity plus total borrowings less cash and cash equivalents)) was -2.6% as at 30 June 2026, representing an increase of 22.5 percentage points from the end of 2025, which was mainly due to a significant decrease in cash and cash equivalents. As at 30 June 2026, the total outstanding borrowings were RMB8,666.6 million, including short-term borrowings of RMB5,318.8 million in aggregate and long-term borrowings of RMB3,347.8 million in aggregate. The Group will repay the aforesaid borrowings in a timely manner at maturity. As of 30 June 2026, none of the Group’s debt covenants in effect included any agreement on the obligations to be performed by controlling shareholders of the Company. In the meantime, the Group also strictly followed all the terms and conditions in its debt covenants, and no default took place. Significant Investments The Group incurred total capital expenditures of RMB2,352.0 million in the First Half of 2026, compared to RMB2,464.1 million in the same period of 2025. The Group incurred total research and development expenditures of RMB1,133.6 million in the First Half of 2026, compared to RMB1,372.3 million in the same period of 2025. Research and development expenditures were mainly incurred by the Group for its product research and development activities. Based on accounting standards and the Group’s accounting policy, the research and development expenditures mentioned above complied with capitalization conditions had been capitalized accordingly. Material Acquisitions and Disposals The Group did not carry out material acquisitions and disposals of subsidiaries, associates or joint ventures during the First Half of 2026. Foreign Exchange Gains or Losses 2 The Group incurred foreign exchange gains of RMB129.1 million in the First Half of 2026, compared to foreign exchange gains of RMB43.5 million in the same period of 2025, mainly due to (i) the effective hedging of exchange rate risks through forward foreign exchange contracts; and (ii) an increase in exchange gains from Euro-denominated payments as a result of changes in the exchange rate of RMB against the Euro. 2 Foreign exchange gains and losses include foreign exchange forward contracts at fair value through profit or loss
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24 The Group used foreign currencies (primarily Euro) to pay for part of its imported parts and components. Foreign exchange fluctuations may affect the Group’s operating results. The Group has a well-developed foreign exchange management strategy that continuously and orderly controls foreign exchange rate risks of foreign exchange exposure. At present, the Group mainly uses foreign exchange forward contracts as its hedging tool. Employees Remuneration Policies Through the implementation of its human resources strategy, the Group has established a performance- and competence-oriented remuneration system on the basis of job classification. The annual business objectives are linked to the performance appraisal of employees via a performance appraisal system, providing an effective guarantee for the Group to recruit, retain and motivate talents, and carry out its human resources strategy. In addition, the Group has established an enterprise annuity system to provide the qualified and voluntary employees with the supplementary pension system with certain guarantee on retirement income. Pledge of Assets As at 30 June 2026, the Group pledged bills receivable of RMB4,153.3 million. Contingent Liabilities As at 30 June 2026, the Group had no material contingent liabilities.
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25 GOVERNANCE PRACTICE Material Litigation and Arbitration As at 30 June 2026, the Company had no material litigation or arbitration. The Directors were also not aware of any material litigations or claims which were pending or had a significant adverse impact on the Company. Events after the Reporting Period There were no events that had a significant impact on the Group after the end of the Reporting Period. Interim Dividend The Board has not made any recommendation on the payment of an interim dividend for the First Half of 2026. Purchase, Sale or Redemption of Listed Securities The Company and its subsidiaries did not purchase, sell or redeem any of the Company’s listed securities (including the sale of treasury shares) during the Reporting Period. As at 30 June 2026, the Company did not hold any treasury shares. Compliance with the Corporate Governance Code The Group is committed to building and maintaining a high level of corporate governance so as to protect the rights and interests of shareholders and enhance corporate value and sense of responsibility. The Company has put together a sound and market-oriented corporate governance structure and established the general meeting, the Board of Directors, the strategy and sustainability committee of the Board (the “ Strategy Committee ”), the Audit Committee, the remuneration committee of the Board (the “Remuneration Committee ”), and the nomination committee of the Board (the “ Nomination Committee”) (the “Special Committees”), and implemented corporate governance in strict accordance with the Articles of Association. The Company has adopted the code provisions under Part 2 of the Corporate Governance Code as set forth in Appendix C1 to the Listing Rules (the “ CG Code ”), and has formulated the purposes, values and strategies that are consistent with its culture and established a modern corporate governance structure comprising the general meeting, the Board and senior management that operate independently and are subject to checks and balances. The Company has complied with all applicable code provisions under the CG Code throughout the Reporting Period.
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26 Compliance with the Model Code for Securities Transactions The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix C3 to the Listing Rules as the code of conduct for dealing in securities of the Company by all Directors and senior management. In response to the Company’s enquiries, all Directors and senior management have confirmed that they strictly complied with the Model Code during the Reporting Period. Changes in Composition of the Board and the Committees On 14 April 2026, due to work adjustment, (1) Mr. Wang Hao ceased to be the Chairman, an executive Director, the chairman of the Strategy Committee and the Nomination Committee; (2) Ms. Zhu Yan ceased to be an executive Director and a member of the Strategy Committee; and (3) Mr. Sun Li ceased to be a non-executive Director and a member of the Strategy Committee. On the same day, the Company convened the 2026 first extraordinary general meeting, at which (1) Mr. Zhang Guofu was appointed as a non-executive Director; (2) Ms. Zheng Mingying was appointed as an executive Director; and (3) Mr. Zhou Jianyu was appointed as a non-executive Director, all for a term commencing from 14 April 2026 until the expiration of the term of the fifth session of the Board. On the same day, the Board convened a Board meeting and resolved to appoint (1) Mr. Zhang Guofu as the Chairman and the chairman of the Strategy Committee and the Nomination Committee; (2) Ms. Zheng Mingying as a member of the Strategy Committee; (3) Mr. Zhou Jianyu as a member of the Strategy Committee; and (4) Mr. Zhao Jinlun as a member of the Strategy Committee, all for a term commencing from 14 April 2026 until the expiration of the term of the fifth session of the Board. For details, please refer to the announcements of the Company dated 20 March 2026 and 14 April 2026, and the circular of the Company dated 25 March 2026. On 25 June 2026, due to work adjustment, Mr. Kevin Walter Binder ceased to be a non-executive Director. On the same day, the Company held its 2025 annual general meeting, at which Mr. Tolga Oktay was appointed as a non-executive Director for a term commencing from 25 June 2026 until the expiration of the term of the fifth session of the Board. For details, please refer to the announcements of the Company dated 21 May 2026 and 25 June 2026, and the circular of the Company dated 26 May 2026. Save as disclosed above, there was no other change in the composition of the Board, the Strategy Committee, the Audit Committee, the Remuneration Committee and the Nomination Committee from 1 January 2026 and up to the date of this announcement. Audit Committee The Company has established the Audit Committee with written terms of reference. As at the date of this announcement, the Audit Committee comprises Mr. Edmund Sit (Chairman), Mr. Gu Xin, Mr. Ye Qian, Mr. Tang Jun and Mr. Ji Xuehong, among which three members are independent non-executive Directors. The Audit Committee has reviewed with the management the accounting standards and practices adopted by the Group and reviewed the unaudited interim financial statements for the First Half of 2026, the 2026 interim results and the 2026 Interim Report of the Group.
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27 PUBLICATION OF UNAUDITED INTERIM RESULTS AND 2026 INTERIM REPORT ON THE WEBSITES OF THE STOCK EXCHANGE AND THE COMPANY This interim results announcement will be published on the Stock Exchange’s website (www.hkexnews.hk) and the Company’s website (www.baicmotor.com) respectively. The Company will publish the 2026 interim report of the Company containing all the information required by the Listing Rules on the websites of the Company and the Stock Exchange in due course. By Order of the Board BAIC MOTOR CORPORATION LIMITED Zhang Guofu Chairman Beijing, the PRC, 28 August 2026 As at the date of this announcement, the Board comprises Mr. Zhang Guofu, as Chairman of the Board and non-executive Director; Mr. Gu Xin, as non-executive Director; Mr. Chen Geng and Ms. Zheng Mingying, as executive Directors; Mr. Ye Qian, Mr. Paul Gao, Mr. Tolga Oktay, Mr. Gu Tiemin and Mr. Zhou Jianyu, as non-executive Directors; Ms. Yin Yuanping, Mr. Xu Xiangyang, Mr. Tang Jun, Mr. Edmund Sit and Mr. Ji Xuehong, as independent non-executive Directors; and Mr. Zhao Jinlun, as employee representative Director. * For identification purpose only