Chairman's Statement

Dear Shareholders,

On behalf of the board of directors (the "Board"), I hereby present the annual results of Brilliance China Automotive Holdings Limited (the "Company", together with its subsidiaries, the "Group") for the year ended 31st December, 2024.

The economy of China continued its recovery trajectory in 2024, China's GDP grew by 5.3% for the full year, slightly surpassing the 2023 growth rate. According to the China Association of Automobile Manufacturers, total vehicle production and sales in China reached 31.5 million units each, marking an increase of 4.6% and 4.7%, respectively, compared to 2023. This achievement firmly secured China's position as the world's largest automotive market for the 16th consecutive year, with 2024 marking the second consecutive peak in sales since 2014.

The passenger vehicle segment remained the backbone of China's automotive industry, accounting for approximately 87% of total vehicle sales. Passenger car sales grew by 5.2% to 27.4 million units, reflecting steady demand in the domestic market. Sedans and sports utility vehicles ("SUVs") continued to dominate the passenger vehicle market, with SUVs maintaining their popularity due to versatility and spaciousness. Compact and mid-size SUVs, in particular, saw strong demand, especially among young consumers and families. Meanwhile, sedans retained their appeal in cities due to fuel efficiency and ease of maneuverability.

The market also witnessed a shift in consumer preferences toward smarter, more connected vehicles. Features such as advanced driver-assistance systems ("ADAS"), in-car entertainment, and seamless smartphone integration became critical considerations for many buyers. The new energy vehicle ("NEV") segment, which includes battery electric vehicles ("BEVs"), plug-in hybrid electric vehicles, and fuel cell vehicles, continued to expand rapidly. NEV sales surged to 11.8 million units, a 24.2% increase from 2023, driven by advancements in technology, enhancement in charging infrastructure, and sustained government incentives. NEVs accounted for approximately 43% of total passenger vehicle sales, underscoring their growing importance in the market.

BEVs remained the dominant force within the NEV segment, representing 70% of total NEV sales. Plug-in hybrids also gained traction, particularly among consumers seeking a balance between electric driving and the convenience of traditional fuel engines. The Chinese government has adopted various ways to continue support for NEVs, playing a crucial role in the popularisation of NEVs.

The premium passenger vehicle segment demonstrated robust growth, with sales rising by 12.8% to 5.1 million units, outperforming the overall market. This growth was fueled by strong consumer demand for high-end features, innovative technologies, and the ongoing support of government policies aimed at promoting the popularisation of premium vehicles.

Despite the positive trends, the passenger vehicle market faced challenges in 2024, including supply chain disruptions, rising raw material costs, and intensifying competition. However, these challenges also presented opportunities for innovation and collaboration. Automakers increasingly focused on localising production, optimising supply chains, and developing cost-effective solutions to maintain competitiveness.

In 2024, China's passenger vehicle market demonstrated resilience and adaptability, driven by technological advancements, evolving consumer preferences, and strong government support. The continued growth of NEVs and the premium segment highlighted the market's dynamic nature, while challenges such as supply chain disruptions underscored the need for innovation and strategic planning. As China solidifies its position as a global automotive leader, the passenger vehicle market is poised for further transformation in the years to come.

In spite of various external uncertainties and intensive market competition in 2024, BMW Brilliance Automotive Ltd. ("BBA") continued to deliver solid results for the year and committed to the long-term approach for its development in China. BBA continued its momentum in meeting customer demands and demonstrated the brand's essence of "Sheer driving pleasure" with premium-quality products through continued efforts and determination of the teams and working closely with other entities within the BMW Group. BBA is also continuously enhancing its supplier network in China and consistently implementing its "local for local" approach.

On 8th May, 2024, BBA marked a milestone with the rolling off of its 6 millionth car, a Frozen Pure Grey BMW i5, from the Dadong Plant assembly line in Shenyang. The plant, BMW Group's globally largest single production base, showcases smart manufacturing, integrating artificial intelligence and digital tech for precision quality control.

Under the principle of "technology openness", BBA remains committed to the Chinese market by introducing more new BMW models of both internal combustion engine and BEVs over the next few years. Currently, BBA Shenyang production base is moving quickly in preparation for the commencement of production of the "Neue Klasse" model in 2026. Local production of the Neue Klasse will begin from 2026. The 10 billion RMB Sixth-Generation Battery Project is progressing on schedule. The BMW iFactory production strategy is being implemented in BBA's Shenyang production base. It applies data science, artificial intelligence and virtualisation technologies to improve production efficiency and quality, as well as saving energy and emissions reduction.

Jinbei (Shenyang) Automotive Co., Ltd. (formerly known as Renault Brilliance Jinbei Automotive Company Limited) ("JSA") is in the process of resuming its operations and production. On 5th December, 2024, the Jiyun（吉運）product series in collaboration with Zhejiang Geely Farizon New Energy Commercial Vehicles Group Co., Ltd. ("Geely Farizon") rolled off the production line at the Shenyang factory. With the upgrade and refinement works already underway, the production line is expected to be ready for full production in the second quarter of 2025. The production of Haise, Haise King, Grand Haise and other fuel and electric vehicle models is scheduled to gradually resume in the second quarter. Improvement in production processes and its products quality will follow. On the marketing front, the company will start restoring the network of domestic dealership and overseas clienteles expansion.

In 2024, Brilliance–BEA Auto Finance Co., Ltd. ("BBAFC"), our auto financing subsidiary in China, successfully engaged a leading new manufacturer of complete NEV which has shown exponential growth over the past 12 months. This diversification strategy reduces the reliance on individual brand partners concentration risk and also supports customer diversity and risk mitigation. The fierce competition and slowing global economic development have led to increasing costs for client acquisition as well as the need for more relevant and dynamic risk controls. The impact of these will lead to shrinking margins in the short term.

In 2024, Ningbo Yumin Machinery Industrial Co., Ltd.("Ningbo Yumin") accelerated the implementation of product transformation and upgrading, with a focus on expanding the aluminium alloy lightweight industry chain. New markets and innovative product research and development achieved new progress, and various aluminium alloy anti-collision beams have been put into mass production. With the development of new products and further improvement in techniques and technology, Ningbo Yumin has applied for 12 innovative patent technologies and passed the national intellectual property standardisation system certification.

Mianyang Brilliance Ruian Automotive Components Co., Ltd. ("Mianyang Ruian"), a wholly-owned subsidiary of the Company, continues to engage in the research, development and manufacturing of camshafts for gasoline and electric vehicle engines. In the face of fierce market competition, Mianyang Ruian needed to meet customers' requirements for cost reductions in order to maintain its market share and secure new orders.

Other than its remarkable achievements in automotive manufacturing, the Company has been actively identifying investment opportunities in related high-tech fields. A prominent initiative is the formation of a joint venture with TCL Hengshi Tianrui Investment (Ningbo) Co., Ltd (TCL恒時天瑞投資 (寧波) 有限公司)("TCL") regarding intelligent cockpits as announced on 31st December, 2024.

The Company identified TCL's leading edge in display technology and intelligent system integration, which are crucial elements for modern intelligent cockpits. By investing in this area, the Company aims to enhance the technological capabilities of its vehicle cockpits. The intelligent cockpit, as the core interactive area for drivers and passengers, demands advanced display screens, intuitive control systems, and seamless connectivity. TCL's expertise in high-resolution displays, touch-sensitive interfaces, and software-defined display solutions aligns perfectly with the Company's aspirations to upgrade in-car experience.

This investment is not only a strategic move to diversify the Company's investment portfolio but also a forward-looking step to integrate cutting-edge technology into its automotive products.

Last but not least, I would like to sincerely thank our shareholders, business partners, management teams, and employees for their continued support and dedication to the Group.