CIMC Vehicles’s “Vanguard Trailer Rental” Completes Series A-round Financing of Over RMB 100 Million To Create a Standardized, Intelligent Trailer Pool for Sharing of Drop and Pull Transportation and Logistics Equipment

(19 April 2022, Hong Kong) CIMC Vehicles (Group) Co., Ltd. (“CIMC Vehicles” or the “Group”, Stock code: 301039.SZ/01839.HK), the world’s leading manufacturer of sophisticated semi-trailers and specialty vehicles, is pleased to announce that its controlling subsidiary, China Jiangsu Vanguard Trailer Rental Co., Ltd. (“Vanguard Trailer Rental“), a semi-trailer time-sharing rental and life cycle management service platform, has completed its Series A-round financing, attracting over RMB 100 million. This round of financing will be utilized to finance the development of Vanguard Trailer Rental’s existing businesses, replenish working capital, and expedite the promotion of its business model.

The strategic investors introduced in the Series A-round financing include Central SOEs Industry Investment Fund for Rural Area, Jiahui Chuangde and Jiahui Chuangyue, subsidiaries of Dowell Capital, Shenzhen Toposcend Capital, etc. Central SOEs Industry Investment Fund for Rural Area is a national rural revitalization fund, which is committed to consolidating the results of poverty alleviation and serving the national strategy of rural revitalization through market-oriented operation. Dowell Capital is deeply engaged in the field of science and technology, relying on its strong industry research capability and rich experience in capital market operation to explore primary market equity investment and primary semi-priced projects with growth potential and investment value. Shenzhen Toposcend Capital is committed to actively cooperating with high-end industrial capital and building a leading science and technology innovation service platform for state-owned capital model innovation and market-oriented system construction with science and technology venture capital products as the core.

“Vanguard Trailer Rental”, a service platform company of life cycle management of semi-trailer products, is committed to creating a standardized, intelligent, cross-industry and interconnected trailer pool for sharing of drop and pull transportation and logistics equipment and providing logistics customers with time-sharing rental of semi-trailers and life cycle management services.

It was given to understand that the shared semi-trailer model defined by Vanguard Trailer Rental realizes the adaptation of a variety of semi-trailers with one single tractor, intelligent management and uniform exchange standards of social resources, assisting logistics and transportation enterprises to reduce operating costs. Meanwhile, the shared semi-trailer model effectively increases logistics efficiency, maintains the smooth passage of agricultural products from the fields to the towns, solves the supply of agricultural products, improves farmers’ income and helps rural revitalization. In addition, the all-round and full chain refrigerated trailer solution strives to improve cold chain transportation infrastructure, promote smooth and efficient, intelligent and convenient cold chain transportation, and provide solid support to ensure food circulation safety, meet the demand for cold chain logistics of medical and biological products, cultivate new source of growth, and build a new development pattern.

With the full implementation of national standards GB1589-2016 and GB7258-2017, there has been an increase in demand for standard compliant semi-trailer equipment in society. At present, there is a wide need for the cost reduction and increase in efficiency in China’s trunk logistics industry. Due to the sharing and collaboration of van equipment, the drop and pull model as a common transportation mode in the logistics industry can save loading and unloading time and optimize transportation efficiency.

In particular, during the pandemic, the advantages of drop and pull model appear. The drivers did not have to get off the trailer, open the window, and contact others in the whole process and could drive the trailer immediately after the trailer is linked to the tractor. These practices effectively cut the global virus transmission chain and further reduce the risk of epidemic spread. In addition, as the operation of drop and pull is easy and convenient, the transport vehicles do not need to wait for the loading and unloading of goods as well as the restriction and disinfection process of drivers across different areas. This reduces the time loss and achieves the “separation of people and goods, segmented transportation and closed management” from the source, thereby achieving the goals of “people management, smooth goods transport”.

Since the Chinese government encourages the development mode of intensive and efficient transportation organization including trailer sharing and rental and the drop and pull transport, the revenue from “Vanguard Trailer Rental” increased significantly by 66.6% year on year in 2021. At present, Vanguard Trailer Rental has reached in-depth cooperation with well-known enterprises such as SF Express, ZTO Express, Best Express, JD Logistics, CHN Energy, Meituan Select, IKEA, etc.

The successful completion of the Series A-round financing marks the high recognition of the capital market for the development potential of Vanguard Trailer Rental in the semi-trailer time-sharing rental and life cycle management service industry. Looking ahead, with the support from shareholders, Vanguard Trailer Rental will continue to focus on user scenarios, create one-stop product life cycle solutions of differentiated “sophisticated manufacturing + value-added services + financial management”, and build a new trailer leasing ecological service system of “enjoy trailers without ownership” to promote the high-quality development of logistics and transportation industry.

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About CIMC Vehicles (Group) Co., Ltd.

CIMC Vehicles (Group) Co., Ltd. (“CIMC Vehicles”, Stock code: 301039.SZ/1839.HK) commenced trading on the ChiNext board of Shenzhen Stock Exchange on 8^th July 2021 and becomes the world’s leading sophisticated manufacturing of semi-trailers and specialty vehicles manufacturer. The Group is the world’s No.1 semi-trailer manufacturer in terms of production volume according to Global Trailer in 2021, and engages in the manufacture, sale and after-sales services of seven major categories of semi-trailers in global major markets. The Group also actively engages in the production of truck bodies for specialty vehicles, and the sales of fully-assembled specialty vehicles in China. At the same time, the Group is also a leading manufacturer of truck bodies for refrigerated trucks in China; semi-trailer products including container chassis trailers, flatbed trailers, curtain-side trailers, van trailers, refrigerated trailers, tank trailers and other special types of vehicles; truck bodies for specialty vehicles including truck bodies for urban dump truck and concrete mixers. Products are sold in China under the “Tonghua”, “Huajun”, “SCVC SAILING”, “Ruijiang Vehicles”, “Lingyu Vehicles”, “Liangshan Dongyue”, “Pioneer Series”, “CIMC Light Tower” and “TB” brands, in North America under the “Vanguard” and “CIE” brands, and in Europe under the “SDC” and “LAG” brands which are both well-known with long history. The Group owns “Light Tower” Plants that represent the strength of China’s sophisticated manufacturing capabilities. These plants focus on product standardization, modular design and production, and serve to actively promote the compliance of semi-trailers and specialty vehicles and quality development.

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