Dear Shareholders,

On behalf of the Board of the Company, I extend sincere gratitude to our shareholders, customers, partners, and all colleagues for their long-standing support! The year 2024 marks a pivotal phase of accelerated transformation for China’s automotive industry and a critical year for the Company to seize opportunities and deepen its strategic evolution.

Over the past year, the global automotive sector continued to face complex challenges. The dual drivers of growth – new energy vehicles (NEVs) and overseas markets – have become increasingly prominent, reshaping the competitive landscape. Against this backdrop, The Company has steadfastly adhered to its strategy of “technologydriven innovation and open collaboration”, leveraging innovation to synergize the development of its proprietary brands, NEV business, and global expansion, thereby achieving steady improvements in operational quality.

In 2024, China’s automotive sales grew by 4.5% in a market where demand diversified and competition intensified. NEVs and overseas opportunities emerged as core growth drivers, surging by 35.5% and 19.3% year-on-year (YoY), respectively. NEV penetration reached 40.9%, while sales of proprietary passenger vehicles rose 23.1% YoY. Non-premium joint venture (JV) brands and internal combustion engine (ICE) vehicle sales continued to decline.

The Company proactively adapted to industry shifts by accelerating business optimization, structural adjustments, and technological innovation, driving transformative upgrades and high-quality growth. Despite intensifying competition and margin pressures, the Company achieved remarkable operational improvements: rapid growth of proprietary brands, NEVs, and overseas operations; robust technological innovation; and a successful turnaround from losses to profitability in business performance.

During the reporting period, the Company sold approximately 1.8959 million vehicles, marking a year-on-year decrease of 9.2%. Notably, domestic passenger vehicle sales demonstrated strong growth in both volume and profitability, with approximately 438,900 units sold–representing a 26.4% year-on-year increase–while gross margin improved by 8.4 percentage points compared to the same period last year. Commercial vehicle (CV) sales reached approximately 351,800 units, reflecting a 2.4% increase year-on-year. NEV sales totaled approximately 394,600 units, up 13.4% year-on-year, with NEV sales accounting for a higher proportion of total Group sales (an increase of 4.1 percentage points compared to the prior-year period). Meanwhile, JV operations were actively engaged in transformation and development, strengthening shareholder strategic synergy and accelerating product upgrading. However, impacted by the continued decline in market share in the non-premium JV market, JV sales registered 1.1052 million units. Overseas exports surged to approximately 195,200 units, a 15.5% year-on-year increase, propelling overall sales to a new record level.

During the reporting period, the Company achieved revenue of RMB106.2 billion, representing a year-on-year increase of 6.9%. Gross profit reached RMB13.6 billion, up 38.2% year-on-year, while net profit attributable to listed company shareholders amounted to RMB58 million, marking a significant year-on-year increase of RMB3.9 billion, successfully turning losses into profitability. The Company maintained a robust balance sheet structure with a debt-to-asset ratio of 52.4%. Operating cash flow increased by RMB8.2 billion year-on-year, and cash reserves at the end of the period approached RMB100 billion.

In 2024, the Company achieved positive progress in all areas of work, with significant achievements in its transformation:

Transformation has accelerated across the board. NEV development accelerated with the launch of 7 new and 2 refreshed proprietary passenger vehicle models, alongside 7 CV models. Voyah’s monthly sales exceeded 10,000 units for four consecutive months, with its “Dreamer” model leading the NEV MPV market. The Nammi brand achieved monthly sales of over 10,000 units for two consecutive months, while the eπ007 and eπ008 gained immediate market traction upon launch. The Fengshen L7 set a new benchmark with a combined range exceeding 2,000 km. Intelligentization efforts advanced rapidly, with the “Xiaoyao” intelligent cockpit ranking among industry leaders and full-scenario intelligent off-road cockpits entering mass production. L2+ autonomous driving adoption reached 77% for proprietary passenger vehicles, while L4 autonomous solutions commenced pilot operations in multiple cities. Internationally, the Company made significant strides. Exports reached approximately 195,000 units, a 15.5% year-on-year increase, setting a new record for the Company.

Structural optimization deepened. The Company further advanced the R&D Transition Initiative”, driving integrated development and centralized procurement of basic vehicle platforms, powertrains, and common technologies, consolidating PV platforms to five while enhancing shared modular components. The “PV Transition Initiative” was intensified, with the establishment of a Proprietary PV Operations Committee to create a unified operational mechanism. This strengthened crossfunctional synergies in productplanning, procurement, and marketing, optimizing resource allocation efficiency and operational quality. The “CV Transition Initiative” was implemented through the formation of a CV Business Division, fostering collaboration in R&D, procurement, marketing, and branding. The initiative standardized platform definitions, planned three modular platforms, and established an initial full-value-chain operational system. JV business transformation accelerated through enhanced strategic alignment with partners, expediting the shift to NEVs. Key milestones included the launch of the Dongfeng Nissan N7, the Dongfeng Honda e:NS2 “Hunting Light”, and collaborative production of the Nammi S32 in Dongfeng Peugeot Citroen Automobile Co., Ltd. The “Parts and Components Transition Initiative” was rolled out, marked by the creation of a Parts and Components Business Division to build integrated operations and vehicle-component synergy mechanisms. Auto finance business were strategically expanded with the establishment of a Finance Business Development Committee, refining the financial ecosystem. Financial penetration rose to 28%, with NEV-related financial services exceeding 40%.

Technological Innovation Intensified. The Company continued to intensify R&D investments in proprietary technologies, accelerating the construction of cuttingedge facilities such as the Global Innovation Center, Global Design Center, Software Research Institute. The Group prioritized major technological initiatives, making advances in critical technologies and industrialization. In energy efficiency and new energy, the Mach Super Hybrid Engine achieved a thermal efficiency of 47.06%, setting a new industry benchmark. Pilot production commenced for solid-state batteries with an energy density of 350 Wh/kg, while a 20–350 kW hydrogen fuel cell product portfolio was strategically deployed. The Group maintained its leadership in hydrogen fuel cell commercial vehicle demonstrations. In intelligentization, the next-generation “Tianyuan Architecture” was developed, with four proprietary chips undergoing testing. The DF30, China’s first self-developed high-performance automotive-grade MCU chip, was unveiled, marking a milestone in domestic semiconductor autonomy. The Company ranked first in patent innovation among Chinese automakers for three consecutive years and secured 17 awards from the China Society of Automotive Engineers, the highest in the industry. These achievements underscore the Group’s unwavering commitment to pioneering technologies that redefine mobility.

Advancing Sustainability Through Corporate Social Responsibility (CSR). The Company has ingrained CSR into its corporate DNA. We actively align with national strategies by advancing green manufacturing systems, strengthening supply chain resilience, and supporting rural revitalization and public welfare initiatives. Through employee career development platforms and refined incentive mechanisms, we harness the collective expertise and dedication of all Dongfeng members, fueling sustained momentum for high-quality growth.

In 2024, the Company achieved a landmark moment in China’s automotive industry–the production of its 60 millionth vehicle, the all-new Voyah Dreamer. This premium NEV MPV, equipped with Huawei’s Qiankun intelligent driving system and a HarmonyOS-powered smart cockpit, set a domestic sales record with an average price of RMB390,000, redefining benchmarks in intelligent electrification. As the flagship of the Company’s transformation into a “technology-driven enterprise,” Voyah blends the Group’s automotive heritage with cutting-edge innovation, achieving breakthroughs in safety, battery-motor-control systems, and smart technologies. It epitomizes China’sleap from “manufacturing” to “smart manufacturing.”

2025 outlook: The global automotive industry will accelerate its shift toward intelligent and low-carbon transformations in 2025. Guided by China’s 14th Five-Year Plan, the Company will deepen its commitment to innovation-driven growth and open collaboration, fast-tracking its evolution into a technology-driven, globally competitive enterprise. With strategic foresight and operational resilience, we are poised to contribute decisively to China’s vision of becoming an automotive powerhouse.

Lastly, we extend our heartfelt gratitude to all stakeholders for your unwavering trust and partnership. Together, let us pioneer a future defined by innovation and shared success!

Chairman
Yang Qing

Wuhan, the PRC, 26 March 2025