Dear Shareholders,

On behalf of the Board of Directors, I hereby present the 2022 annual report of Dongfeng Motor Group for your review.

The year 2022 was an extraordinary year in the history of automobile industry, when the domestic automobile market was subject to greater challenges because unfavourable factors were worse than expected, as the automobile industry was weighted down from three dimensions: contracted demands of the macro economy, supply shock and weak expectations, the industry chain, the supply chain and the distribution chain were away from the track of normal operation, and the new energy vehicle segment saw significant rise of battery prices. The market was undergoing profound structural changes, with luxury brands growing continuously, independent brand passenger vehicles witnessing further improvement in sales volume, the new energy vehicle market developing rapidly and the export to overseas automobile markets maintaining strong growth, but joint-invested non-luxury vehicles registering year-on- year decrease of market share and the commercial vehicle market experiencing continuous decline, which indicated that brand differentiation was growing distinct.

Faced with the severe and complex situation and the arduous missions, the Group remained committed to high- quality development and devoted every effort to maintain business stability and health. The sales volume of vehicles registered 2,464,500 units for the year, representing year-on-year decrease of 11.2% but still remaining among the top three in the industry. The independent brand passenger vehicle business showed a good momentum of accelerated development and recorded sales volume of 497,900 units, representing year-on-year increase of 39.6%, which was 30.1 percentage points higher than the average industry growth. Affected by the sluggish overall commercial vehicle market, the Group’s commercial vehicle business reported sales volume of 311,300 units, representing year-on-year decrease of 40.4%. The new energy business of the Group maintained rapid growth, with the sales volume of new energy vehicles reaching approximately 346,100 units for the year, representing year-on-year increase of 115.5%, which was 22.1 percentage points higher than the average industry growth, being the fourth in the industry. The high-end brand VOYAH achieved the product layout of “Three-Year Plan for Three Classes”, as the flagship electric luxury MPV VOYAH Dreamer was launched, the flagship luxury electric sedan Halo (“Zhuiguang”) debuted and Aeolus E70 secured the first place in the operating-purpose vehicle market with year-on-year growth of 2 times in the sales volume. The joint venture passenger vehicle business remained stable overall and recorded sales volume of 1,655,300 units. In particular, Dongfeng Peugeot Citroen Automobile Company Ltd. witnessed continuous growth in the sales volume, registering year-on-year increase of 24.5%.

The Group recorded sound performance in all key financial indicators. The sales revenue of the year reached RMB92.663 billion, and the net profit attributable to equity holders of the Company amounted to RMB10.265 billion, with a net profit margin of 11.1%, which was the best performance in the recent three years. As the Group further adjusted the asset structure and improved operation efficiency, the gearing ratio decreased by 2.6 percentage points year on year.

Acting in line with the overall objectives of the “14th Five-Year Plan” and the “One Body with Two Wings” business layout, the Group further advanced the transformation to a preeminent technology-driven enterprise and achieved new progress in development of independent brand new energy vehicles and core technologies and in deepening reform. In the independent brand new energy vehicle segment, the Group focused on expanding new fields and further consolidating new advantages to promote the development of new energy and intelligent networked vehicles; achieved the strategic deployment of brand, platform, products, key components and core technological resources for new energy vehicles, and built the brand portfolio covering luxury (M HERO), high end (VOYAH), medium end (Aeolus) and economical (Nano Box). The independent brand passenger vehicle segment created the “1+2” platform framework, represented by one hybrid and energy conserving framework and the two special-purpose new energy frameworks, and built the green power brand “Mach”, the 1.5T hybrid engine of which had effective heat efficiency up to 45.18%, being the first of its kind with heat efficiency of over 45% recognised in China’s automobile industry. The project “Development and Application of Key Technologies for Full-power Fuel-cell Vehicles and Systems” was honoured with the first prize of “China-SAE Science and Technology Award”; Dongfeng Hydrogen Boat, the first high-end full-power fuel-cell vehicle in China, was put into mass production. The development of driverless passenger vehicles, namely Robotaxi and Sharing-Van, and driverless trucks have reached the L4 standard. Products of Dongfeng Unmanned Driving Platform have been applied in more than 30 cities in China by demonstration programmes; the Company is the only enterprise of the industry that provides driverless and smart buses to Xiong’an New Area and participates in the initiative of smart city construction. In the commercial vehicle field, the Group built four electrification platforms for medium and heavy trucks, light trucks, vans and pickup trucks, developed the green power brand “Dragon Engine” and made contribution to the construction of “China’s Power Chain”.

In field of core technologies, the mastery rate of core technologies identified by Dongfeng has reached 82.1%. With intensified efforts in the fields of electrical and electronic architecture, automotive-grade chips, autonomous controllers, automotive operating systems and intelligent driving, the Group harvested achievements that deserved the title of industry leader, which included building the new-generation centralised, service-oriented SOA electrical and electronic architecture featuring software and hardware decoupling, which was the first of its kind in the industry, achieving industrialisation of IGBT (Insulated Gate Bipolar Transistor) and realising mass production of silicon carbide power module and large-scale application in vehicles in 2023. As the Group accelerated the development and application of independent-brand automotive-grade MCU chips, the first three chip products have entered the stage of trial production for testing. Independent-brand chip-carrying parts under the Aeolus brand recorded 80% of backup rate. The Group maintained the first place in the industry in terms of invention patent disclosure.

Deepening reform and accomplishing the tasks under the three-year action for reform of state-owned enterprises, the Group reaped greater efficiency and benefits. It announced and implemented the Sailing Programme to improve the corporate governance system of subsidiaries, and fully finished the third round of tenure-based and contract-based appointment; accelerated strategic restructuring and adjustment, and completed the “three-in-one” specialisation integration of Zhixin Technology, Dingxin Power and Dongfeng (Wuhan), thus further acquiring core resources; completed the acquisition of controlling interest of the listed company specialised in light vehicles, thereby further improving the structure of commercial vehicle segment; further deepened reform of all business units, therefore laying solid foundation for improvement of overall competitiveness and operation efficiency.

In the future, the automobile market is expected to face severe and complex situation and much fiercer competition. The Group will unswervingly promote high-quality development, accelerate the transformation and upgrading in alignment with the 14th Five-Year Plan, and vigorously advance the “Dongfeng Advance” plan and the “Transition Action of technological innovation” plan. It will improve the capability and consolidate the foundation, keep a firm determination and strengthen independent development, enhance abilities to boost transformation, gather strength to improve the system, reinforce execution to promote effective plan implementation, so as to achieve real improvement in quality and reasonable increase in quantity and to accelerate the construction of Preeminent Dongfeng and world- class enterprise.

Dongfeng Motor Group will continue to increase its dividend payments to earnestly return to shareholders. Considering the Group’s profitability and future development, the Board proposed to distribute a final dividend of RMB 0.30 per share (tax included) from the profit of 2022.

Finally, on behalf of the Board, I would like to express my sincere gratitude to all shareholders for their continued support and dedication.

Zhu Yanfeng

Wuhan, the PRC

29 March 2023