AFMG Announces Signing of Cooperation Framework Agreement with Shanghai Jinqiao

[Immediate Release]

APOLLO FUTURE MOBILITY GROUP Announces Signing of Cooperation Framework Agreement with Shanghai Jinqiao

Intended to Manufacture High-performance Electric Sports Cars and Luxury EVs in Shanghai for Capturing High-end EV Market in the PRC

Mr. Richard Sung, Group CEO of Apollo Future Mobility Group Limited (left) and Mr. Tang Wenkan, General Manager of Shanghai Jinqiao Export Processing Zone Development Co., Ltd. (right) signed agreement for the Apollo’s pure electric sports car industry project witnessed by (back row, left to right) Mr. Li Liang, Deputy General Manager of Shanghai Energy Conservation Center, Mr. Eric Ho, Group Chairman of Apollo Future Mobility Group Limited,  Mr. Wu Qiang, Vice Mayor of Pudong New Area,  Ms. Wang Ying, President of Shanghai Jinqiao Export Processing Zone Development Co., Ltd. and

Mr. Yan Junjie, Deputy Director of Shanghai Jinqiao Management Committee in the ceremony held in Shanghai.

(30 March 2021, Hong Kong) – Apollo Future Mobility Group Limited(“AFMG”, the “Company”, HKEX stock code: 860.HK; and together with its subsidiaries, the “Group”) is pleased to announce that as part of the Company’s business plan to become a world leading new energy vehicle (“NEV(s)”) solutions provider, today the Company and Shanghai Jinqiao Export Processing Zone Development Co., Ltd (“Shanghai Jinqiao” ; SSE stock code: A-share:  600639 / B Share: 900911) entered into the cooperation framework agreement for proposed cooperation on the planned production and research and development (“R&D”) of technology and products related to a range of high performance electric sports cars and luxury electric vehicles (“EV(s)”) in Shanghai Jinqiao Economic and Technological Development Zone (the “Development Zone”) situated in Pudong New Area. The proposed cooperation will further strengthen the Group's position in the NEV industry by capturing the huge demand and rising opportunities for high performance electric sports cars and luxury EVs in the People’s Republic of China (the “PRC”), thus is an important move in the Group’s business strategy of building a complete value chain for EVs.

Intended to Manufacture High-performance Electric Sports Cars and Luxury EVs in Shanghai by Leveraging on Jinqiao's Strong Foundation in Automobile Industry

Pursuant to the cooperation framework agreement, the Company intends to establish a joint venture in the Development Zone for the launch of high-performance electric sports cars and luxury EVs products in the PRC. In the past few years, AFMG has invested a total of RMB 3 billion in R&D of NEVs and mobility technologies. Being one of the key development projects of the Group, it is estimated that the investment of this project, which will be conducted in Shanghai, will amount to RMB 2 billion. AFMG intends to establish a R&D center, regional headquarter and production lines in the Development Zone. Shanghai Jinqiao, on the order hand, intends to coordinate with the local governments and other relevant authorities for the implementation of the projects, and assist the projects in applying for relevant industrial support policies, and production and product access permits, and to provide physical space such as factory plants that are necessary for the implementation. Both parties will jointly promote the development of the projects.

As a state-owned development platform situated in Pudong New Area, Jinqiao is committed to introducing and cultivating leading enterprises in new energy and automotive electronics as well as dynamic innovation enterprises. It is a cluster area for the automotive industry in Shanghai and even in the PRC. After 30 years of changes, Jinqiao has achieved an annual output of 1.6 million vehicles, and the output value of the automobile industry exceeds RMB 160 billion. It brings together a group of well-known enterprises such as General Motors, Volvo, Valeo, Hella, and SAIC Infineon, and have a complete automobile industry chain and strong technical R&D capabilities. The proposed cooperation between the two parties is the Group’s strategy to improve its strategic layout in the world and the PRC, meanwhile, it injects new vitality and impetus into Jinqiao’s automobile industry that the advantages of the two parties will be fully utilized.

Capture High-end EV Market in the PRC with Cutting-edge Technologies and Prestigious Brand 

As the domestic consumption power increases, the development potential of luxury car market is obvious. Luxury cars priced at above RMB 1 million are mainly imported fuel vehicles in the PRC. In 2020, the proportion of electric luxury cars priced above RMB 1 million sold in the PRC is less than 1%. With the acceleration of global automobile electrification, the electrification of luxury cars will become an inevitable trend in the future. It is predicted that in 2030, the market share of pure EVs will reach 35%, and the annual demand for electric luxury vehicles will reach 130,000. It is also expected that electric luxury vehicles will overwhelm the traditional fuel luxury vehicle market in the next five years, which will provide ample development potential for the projects.

The Group plans to launch a pure electric sports car which will mark its first debut in the PRC under a sub-brand of the prestigious brand "Apollo". The target customers are young people and high-net worth-individuals who like EVs and/or sports cars. The products will combine the Group’s cutting-edge technologies such as ultra-fast charging time, 3D printed parts, solid-state batteries, 800V SiC dual inverters, as well as the exquisite appearance and interior design led by the German team, in order to endow the product with a superior driving experience that combines performance, safety and stylish fashion. This project is expected to launch prototype model in the second half of 2021, and start mass production in 2023. In addition, based on market conditions, the Group plans to launch luxury series of electric SUVs and EVs in the next few years to meet the market's continued pursuit of high-end EVs.

Mr. Ho King Fung, Eric, Chairman of Apollo Future Mobility Group Limited, comments, “The Group is very pleased to sign the cooperation framework agreement with Shanghai Jinqiao and have gained support from the People's Government of Shanghai Pudong New Area. We aim to actively promote the implementation of the projects and the development of the EV industry, in order to achieve mutual benefit and win-win situation."

Mr. Ho continues, “Through the projects, the Group will further demonstrate its solid mobility technologies, expand the market in the PRC and explore the development of engineering service business; at the same time, this move is also in line with Shanghai's positioning plan of ‘Strengthening leadership in the high-end industry and accelerating the development of six industries including automobiles’, thus the projects are major landmark projects of the Group in the PRC market. Leveraging on the Group's expertise in the NEV-related supply chain as well as Shanghai Jinqiao's network and experience in development, construction and industrial development, the parties are expected to utilize their respective expertise and resources to support and successfully implement the projects in the PRC. We are full of confidence in the prospects of the projects and look forward to bringing drivers with luxury products with unique future technologies and excellent quality.”

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About Shanghai Jinqiao Export Processing Zone Development Co., Ltd.

Shanghai Jinqiao Export Processing Zone Development Co., Ltd. was incorporated in November 1992 with a registered capital of RMB1.122 billion. It is listed on the Shanghai Stock Exchange A-share market (stock code: 600639) and B-share market (stock code: 900911). In 2015, as one of the first pilot reform enterprise under the reform of state-owned enterprises in Pudong New Area, Shanghai Jinqiao became a first-class direct subsidiary of the State-owned Assets Supervision and Administration Commission of the Pudong New Area. As the major developer and constructor of the Development Zone, Shanghai Jinqiao is responsible for the development and construction, investment attraction, industrial development and operation management of the Development Zone. Shanghai Jinqiao strives to build an exemplary zone that integrates industrial and urban areas, and is engaged in the development, investment, attraction and operation management of the industrial, commercial, residential and supporting facilities of the Development Zone.

About Apollo Future Mobility Group Limited

Apollo Future Mobility Group Limited (HKEX stock code: 860) is a leading integrated mobility technology solution provider with proprietary and disruptive mobility technologies. It is determined to build a world-leading one-stop service platform for "future mobility" through the integration of global advanced mobility technologies.

After completing the acquisition of 86.06% of Apollo Automobil, a European high-performance hypercar developer and the acquisition of the entire issued share capital of Ideenion Automobil AG, a German mobility solutions provider, the Group rebranded as "Apollo Future Mobility Group", focusing its business development on two pillars, which are Apollo Automobil and Apollo Advanced Technologies (AAT). In addition to the development and sales of hypercars and its cross-branding licensing business under the “Apollo” brand, the Group provides one-stop turnkey mobility technology solutions by integrating the Group’s existing electric vehicle technologies, from ideation, design, modeling, engineering, simulation, prototype production, actual testing, to the delivery of pre-production prototypes to customers, striving to provide the global mobility market with a seamless and comprehensive solution platform.

The Group's subsidiaries include Apollo Automobil, Ideenion Automobil AG and GLM Co. Ltd which is a leading electric vehicle developer in Japan. In addition, the Group has also expanded its mobility technology offerings by investing in Divergent Technologies, Inc., the world's first 3D printing automotive manufacturing platform, and EV Power, a leading electric vehicle charging solutions provider.