It is necessary to let the founder team lead the development of the company

According to the \”China
Entrepreneur\” report, Zhou Hongyi, chairman and CEO of 360 company,
responded to the matter of \”giving up the capital increase in Nezha,\”
saying that Nezha Auto is still a startup company and needs to let the
founder team lead the company Development, not completely capital-led. Still, now the founder team has too little equity. The positioning of 360 is
also to support and assist the team.

360 announced on June 26 that
it planned to invest 2.9 billion yuan in Nezha Auto with its funds. According to the signed Equity Transfer Agreement on
Hezhong New Energy Automobile Co., Ltd., the company, as a shareholder of Nezha
Automobile, enjoys special rights, including redemption rights, preemptive
rights, and additional investment rights; The capital contribution of 100
million yuan was paid on May 31, 2021. As of the disclosure date of
the announcement, the company still has an unpaid investment of 1 billion
yuan, corresponding to a 3.532% stake in Nezha Auto. After
deliberation and decision, the company will transfer the equity
corresponding to this part of the investment. The registered capital
of Nezha Auto shared this time is 79.9944 million yuan, which is the
unpaid registered capital of 360, and the corresponding asset is 1 billion
yuan. The transfer price of this transaction is 0 yuan. After the transfer
is completed, the transferee will obtain a total of 79,994,400 yuan of
registered capital of Nezha Auto and is obliged to pay an investment amount of
1 billion yuan to Nezha Auto.

On June 27, Nezha Automobile
announced that the fund of part of the equity transferred by 360 will form a
concerted action person with the management team, which is conducive to
improving the corporate governance structure, enhancing the control of the
management team, and controlling the various aspects of Nezha Automobile. The long-term sustainable operation of the business is more beneficial. At
present, Nezha Auto is promoting the industrial and commercial change of this financing round and will quickly start the company\’s shareholding system
reform.

After the partial equity transfer
of 360, it still holds more than 10% of the shares of Nezha Auto and
is an essential shareholder of Nezha Auto. The two parties will continue to
cooperate in digital security and intelligent driving safety
technology to further ensure the safety of intelligent networked vehicles.

According to the data, Nezha delivered a total of 49,974 vehicles from January to May, a year-on-year
increase of 213%. Nezha Auto said that the monthly order
of Nezha U+V has continued to stabilize at more than 15,000 units, and it is
still growing. The first product, Nezha S, based on the \”Shanhai
Platform\” developed by Nezha Auto\’s full-stack, has already started
pre-sale for the Yaoshi version. Pre-sale of all models will begin in
July, and it is expected to be delivered to the market in the fourth quarter.