Closing of Highly and Marelli Auto Parts Joint Venture Project

Shanghai Highly (Group) Co., Ltd., ("Highly Group"), the world's leading R&D manufacturer of core components and cooling & heating related products for white home appliances and new energy vehicles, and Marelli Holdings ("Marelli"), a world-renowned auto parts supplier, recently announced the completion of a joint venture transaction of auto parts.

Prior to the deal closing, Marelli had divested and restructured its assets and business of automotive air-conditioning compressors and HVAC business (with a business scale of 91.7 billion yen in 2019) and incorporated Marelli (Hong Kong) Holdings Co., Limited ("Marelli Hong Kong") to carry the target carved out assets and business. Highly Group has made the acquisition of 60% of the equity of Marelli Hong Kong. Upon completion of the closin g, the company changes its name to Highly Marelli Holdings Co., Limited ("Highly Marelli").

The Joint Venture between Highly and Marelli is not coincident, but inevitable. The same organization DNA, similar missions and complementary advantages of Highly and Marelli laid the foundations of the Joint Venture. During the preparation over the past one year, both sides have been working closely and reaching an agreement on the goals of the joint venture. The successful closing of the transaction means a new beginning. Highly Marelli will be devoted to developing, manufacturing, and selling world-class automotive air-conditioning systems and thermal management systems for new energy vehicles, and providing entire solutions. It will leverage the strengths of both parent companies in the field of automotive parts and components, maximize the synergies and expand the global market. The company is registered in Hong Kong SAR, China’s mainland, with its operation headquarters located in Shanghai (China) and Saitama (Japan). The company employs approximately 4,200 people and operates a global business over the world in Japan, China’s mainland, Asia, Europe, and North America.