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, 2025.

This year, the global automotive industry underwent profound transformation driven by electrification, intelligence and sustainability, while China’s economy maintained a steady and high-quality recovery trajector y. Faced with intensifying market competition and evolving industry dynamics, the Group adhered to its strategic vision, forged ahead with resilience, and achieved remarkable progress in business operations, technological innovation and strategic layout – laying a solid foundation for long-term sustainable development.

In 2025, China’s economy maintained stable growth, with full-year Gross Domestic Product (GDP) growth meeting the expected target, providing a strong macroeconomic backdrop for the automotive industry. The industry continued its structural upgrade, shifting from “scale expansion” to “quality improvement”. According to data released by the China Association of Automobile Manufacturers, China’s total vehicle production and sales remained above 34.4 million units, consolidating its position as the world’s largest automotive market for the 17th consecutive year. This milestone not only demonstrates the resilience and vitality of China’s automotive industry but also reflects the strong domestic consumer demand for high-quality mobility solutions. As the core driving force of the industry, the passenger vehicle market continued to play a leading role, accounting for approximately 88% of total vehicle sales. A notable trend was the accelerated popularization of smart, connected and electrified products – consumers are no longer satisfied with basic mobility needs, but increasingly pursue Advanced Driver-Assistance Systems (ADAS), immersive in-car interaction experiences and seamless connectivity. The New Energy Vehicle (“NEV”) segment maintained its robust growth momentum, with annual sales exceeding 16.49 million units, a year-on-year increase of approximately 28.2%, and its penetration rate in the passenger vehicle market rising to around 47.9%. This not only reflects the success of China’s energy transition strategy, but also marks the NEV sector’s transition from a “niche market” to a “mainstream market”.

Within the NEV segment, Battery Electric Vehicles (“BEVs”) remained the dominant force, while Plug-in Hybrid Electric Vehicles gained increasing traction among consumers seeking a balance between electric driving experience and long-distance travel convenience. Notably, consumer demand in the Chinese market has become more rational and diversified. In addition to smart and electrified features, consumers’ attention to vehicle safety performance and brand reputation has continued to rise, with the completeness of safety configurations, brand market recognition and after-sales service quality becoming core factors influencing consumers’ purchasing decisions. Technological breakthroughs in high-voltage fast-charging platforms, battery energy density and intelligent control systems, coupled with the continuous improvement of the charging infrastructure network and stable policy support, have effectively alleviated consumers’ concerns about range anxiety and charging convenience, further promoting the popularization of NEVs. Meanwhile, the premium passenger vehicle market underwent structural adjustments: traditional premium models faced increasing competitive pressure, while those with leading electrification and intelligence capabilities, comprehensive safety configurations and profound brand heritage maintained strong growth, reflecting consumers’ growing emphasis on technology, product experience, brand value and safety performance.

Despite the positive overall industry trends, the automotive industry in 2025 also faced significant challenges – intensified market competition led to price wars and pressure on gross margins; fluctuations in raw material prices and supply chain uncertainties posed operational challenges; and the accelerated pace of technological iteration placed higher requirements on enterprises’ R&D capabilities and innovation speed. In response, the Group proactively adapted to market changes, optimized operational efficiency, strengthened technological innovation and deepened strategic cooperation, turning challenges into opportunities for high-quality development.

As a core pillar of the Group’s business, BMW Brilliance Automotive Ltd. (“BBA”) maintained stable and high-quality operations in 2025, adhering to the BMW Group’s global strategy while deeply integrating into the Chinese market. Guided by the brand essence of “Sheer Driving Pleasure”, BBA continuously optimized its product portfolio, covering both internal combustion engine models and pure electric models, to meet the diverse and personalized needs of Chinese consumers, especially aligning with consumers’ core demands for safety performance and brand value.

Throughout the year, BBA deepened its cooperation with the BMW Group ecosystem, leveraged global technological resources to enhance its local R&D and production capabilities, further advanced its “local for local” strategy, and continuously consolidated and expanded its local supplier network. This not only improved the stability and flexibility of the supply chain, but also promoted the high-quality development of the local automotive industry chain.

As the BMW Group’s largest single production base worldwide, the Shenyang production base continued to lead the industry in smart manufacturing and green production. This year, the base accelerated the application of artificial intelligence, digital quality control and renewable energy technologies, launched a geothermal heating project to reduce carbon emissions, and made remarkable progress in building a “green, intelligent and efficient” production system.

A key highlight of BBA’s development in 2025 was the accelerated preparation for the Neue Klasse model, which is scheduled to be launched in 2026. As a core supporting project for the Neue Klasse, the RMB10 billion Sixth-Generation Battery Project has been fully completed and put into trial operation, with production capacity for high-performance round cells that will significantly enhance the performance and driving range of future electric models. Meanwhile, the BMW iFactory strategy was fully implemented at the Shenyang production base, integrating data science, artificial intelligence and virtualization technologies to optimize production processes, improve product quality and reduce energy consumption, laying a solid foundation for BBA’s long-term development in the electrification era.

2025 was a crucial year for the business recovery and development of Jinbei (Shenyang) Automotive Co,. Ltd. (“JSA”). After a period of preparation and adjustment, JSA fully resumed operations and production in 2025, marking an important turning point in its recovery journey. The technical upgrading and transformation of the production line was successfully completed at the end of April 2025. The factory area was renovated and upgraded into a first-class commercial vehicle factory with flexibility and automation, winning the title of Advanced Intelligent Factory in Liaoning Province and successfully passing the ISO9001 quality management system certification. The new R&D center was completed, realizing an integrated R&D process of “design-prototype-verification”.

In terms of production resumption, fuel models such as Haise, Haise King and Grand Haise were successfully put into production sequentially from May to October 2025. In the second quarter of this year, the production line completed comprehensive upgrading and full-capacity commissioning on the basis of the earlier technical transformation, laying a solid foundation for large-scale production.

The Jiyun product series, co-developed with Zhejiang Geely Farizon New Energy Commercial Vehicles Group Co., Ltd. (“Geely Farizon”), was put into mass production and launched on the market, receiving positive feedback from consumers with its advanced technology, reliable performance and comprehensive safety configurations, which are well aligned with prevailing market demand for safety and brand. To further deepen cooperation and expand business layout, JSA and Geely Farizon established a joint venture in April 2025, focusing on the R&D and production of new energy commercial vehicles, helping JSA seize the development opportunities in the commercial vehicle electrification market. At the same time, JSA gradually restarted its classic models such as Haise, Haise King and Grand Haise, as well as their corresponding electric versions, continuously optimizing production processes and improving product quality and safety configurations to meet market demand.

On the marketing front, JSA actively reconstructed its domestic dealer network, having restored or newly established 82 first-level network dealers, 124 Jinbei service stations and 74 Jiyun service stations, redefined the visual identity, and presented a renewed and upgraded Jinbei brand to customers. In terms of overseas sales channels, JSA achieved a transformation from complete vehicle export to KD (Knocked Down) cooperation, promoting international production through technological empowerment. The first KD vehicle of the Vietnam KD project rolled off the production line on 5th September, 2025. The Haise KD model cooperating with Jinbei Royal Egypt Auto Trading Company will be produced locally in 2026. The first exclusive Jinbei store in Egypt was officially put into operation in October 2025. Further, a strategic cooperation was signed with Toyota Tsusho, entering the Saudi market to achieve global channel sharing. All these lay a solid foundation for the sustained recovery of its commercial vehicle business.

Brilliance-BEA Auto Finance Co,. Ltd. (“BBAFC”), the Group’s automotive financial services subsidiary, continued to implement its business diversification strategy in 2025, aiming to reduce concentration risk and enhance business resilience. This year, BBAFC further expanded its cooperation scope, establishing partnerships with more high-growth NEV manufacturers and prioritizing partners with strong brand reputation and comprehensive safety credentials. This not only enriched its customer base, but also reduced reliance on individual brand partners, achieving a more balanced and diversified asset structure.

Faced with the challenges of intensified industry competition, rising customer acquisition costs and complex market environment, BBAFC actively upgraded its risk control system, leveraging digital technology to improve risk identification and management capabilities, ensuring the stability of asset quality. Although short-term margin pressure persisted due to market factors, BBAFC maintained stable operations throughout the year, providing strong financial support for the Group’s automotive sales and achieving positive results in balancing development and risk control.

The Group’s components business continued to focus on transformation and upgrading in 2025, focusing on technological innovation and product optimization to enhance its core competitiveness and market influence, and better meet the requirements of vehicle manufacturers for safety performance and product quality. Ningbo Yumin Machinery Industrial Co,. Ltd. (“Ningbo Yumin”) accelerated its product transformation and upgrading, focusing on expanding the aluminum alloy lightweight industry chain – which is an important direction for the automotive industry to achieve energy conservation and emission reduction, and can also improve vehicle safety performance. During the year, Ningbo Yumin continued to focus on product transformation and upgrading and the expansion of the aluminum alloy lightweight industry chain. New key orders include high-end supporting projects such as sunroof rails for the all-new BMW X5 model (code G78) of BBA, sunroof rails for the Beijing Benz GLE model (code T167), and curtain rail series products for Mercedes-Benz’s new electric VAN.EA platform models. The company successfully developed 2 new customers during the year, further consolidating its leading position in the high-end automotive components market.

Mianyang Brilliance Ruian Automotive Components Co,. Ltd. (“Mianyang Ruian”), a wholly-owned subsidiary of the Company, adopted the development strategy of “project-driven + new customer development”, and its monthly sales exceeded 300,000 units for the first time in March 2025, setting a new monthly record. Faced with fierce market competition and customer cost reduction requirements, Mianyang Ruian actively optimized production processes and reduced production costs, while adhering to quality standards to ensure product safety and reliability. It strived to maintain its existing market share while actively expanding new orders from core customers, ensuring the stable development of its business.

Recognizing the strategic importance of high technology in the automotive industry’s transformation, the Group actively explored high-tech investment opportunities in 2025, focusing on the intelligent cockpit segment – a core link in automotive intelligence and key to enhancing safety, user experience and brand competitiveness. Following the December 2024 joint venture announcement with TCL Hengshi Tianrui Investment (Ningbo) Co., Ltd. (“TCL”), the two parties officially established Yuxin Zhixing Technology (Shenyang) Co., Ltd. (“Yuxin”) on 21st April, 2025, with a total investment of RMB1.4 billion, focusing on R&D and production of high-end intelligent cockpit products with safe interaction design. In 2025, Yuxin focused on product delivery and business expansion: its rear-seat smart control screen entered mass production at ZEEKR in September 2025, with new nomination from Dongfeng Voyah. Its new Shenyang factory, built to top international standards, started construction in late March, completed main structure in August, and launched trial production in late December 2025, achieving “same-year construction and production”. TCL’s technological advantages complement the Group’s manufacturing capabilities. Through this joint venture, the Group enhances in-vehicle cockpit technology, meets consumer demand for safety and brand, diversifies its investment portfolio, and seizes opportunities from automotive intelligent transformation.

Looking back on 2025, it was a year of challenges and achievements for the Group. In the complex and volatile market environment, the Group adhered to its strategic direction and made steady progress in various businesses: BBA maintained stable operations and accelerated its electrification transformation, continuously aligning with consumers’ demand for safety and brand; JSA achieved full recovery and regained development momentum; the components business continued to upgrade and enhance its competitiveness; and the strategic layout in the intelligent cockpit field made important progress. These achievements are the result of the joint efforts of all shareholders, business partners, management teams and employees.

Looking ahead, the global automotive industry will continue to be in a period of profound transformation, with electrification and intelligence as the core driving forces and sustainable development as a defining trend, while Chinese consumers’ attention to safety and brand will continue to deepen. The Group will adhere to the concept of high-quality development, focus on core businesses, and continuously enhance its comprehensive competitiveness. We will continue to support BBA’s Neue Klasse project and the large-scale application of the Sixth-Generation Battery, promote the sustained recovery and development of JSA’s commercial vehicle business, accelerate the transformation and upgrading of the components business towards lightweight and intelligence, promote the construction and operation of the intelligent cockpit joint venture with TCL, further strengthen product safety standards and brand equity, and create greater value for shareholders, business partners and society.

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.