2020 February 10, Hong Kong/Gothenburg. Geely Automobile Holdings Limited (Hong Kong 0175) announces that the management of the company is in preliminary discussions with the management of Volvo Car AB (“Volvo Cars”) regarding a possible restructuring through a combination of the businesses of the two companies (the “Proposed Transaction”) into a strong global group that could realise synergies in cost structure and new technology development to face the challenges in the future. The intention would be to preserve the distinct identity of each of the brands Geely, Volvo, Lynk & Co and Polestar. It is intended that the combined business will be listed in both Hong Kong and Stockholm to enable it to access the capital markets.

As of the date of this announcement, no concrete timetable or detailed plans of the Proposed Transaction have been formed. The Proposed Transaction, if it materialises, will be subject to, among others, approvals of the respective boards and shareholders of the Company and Volvo Cars, regulatory approvals and prevailing market conditions. The Company will make further announcements in relation to the Proposed Transaction if and when required.

As the Proposed Transaction is only preliminary in nature, it may or may not proceed, shareholders and potential investors are reminded to exercise caution when dealing in the securities of the Company.