FDG Electric Vehicles : Group Hangzhou EV Manufacturing Base Commence Mass Production

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Press Release

FDG Group Hangzhou EV Manufacturing Base Commence Mass Production

(17th April, 2016 - Hong Kong) FDG Electric Vehicles Limited ("FDG Electric Vehicles", "FDG Group" are pleased to announce the commence of operation of the Group's core electric vehicle plant in Hangzhou Yuhang Economic and Technological Development Zone.

The plant covers an area of 1,150 mu. state-of-the-art production facilities for five major processes including stamping, welding, painting, assembly and electric control, as well as testing lines and technical centers have been built according to high standards and specifications, it is a highly intelligent, professional and modern factory planned, designed and built according to the features of electric vehicle(EV). The designed annual production capacity is 100,000 pure EVs, including public buses, mid-size buses, commercial vehicles, logistic vehicles and passenger vehicles, etc.

All the EVs produced by FDG Group are designed according to the particular features of electric vehicles through the Group's own independent Forward Engineering. Compared with the traditional engineering approach, which technique is develop based on traditional automobile, adopted by most of the EV manufacturers domestically and internationally, FDG Group products has an obvious advantage in the layout and structure. In addition, the FDG Group EVs are all equipped with the 5- 13T double-side motor wheel drive axel, which is also designed and developed by the Group independently. The FDG Group Hangzhou manufacturing base has been on trial operation for more than half a year, the commence of the plant is a milestone of FDG Group, which enables the Group to further develop into one of the leading vertically integrated EV manufacturers in China.

FDG Group has a long-term vision in expanding the EV business and to become an international enterprise. It will combine the huge market potential in the PRC and different advantages in resources around the world, to seize every opportunity. FDG has built partnership through acquisition and various ways of cooperation with companies including the NCM (Nickel-cobalt-manganese) battery cathode material manufacturer, SK (Chongqing) - a subsidiary of SK Group, American renowned EV producer Smith Electric Vehicles Corp, and Aleees, a leading LFP cathode material manufacturer in Taiwan, actively expanding the business to both upstream and downstream, promoting its products to all over the world and establishing an international brand reputation.

The PRC government continuously provides support in the sector of new energy development. The tendency of improving the urban environment and saving the energy will make EV manufacturing to be the mainstream in the automobile industry. New energy vehicle/ EV has huge potential in the world, FDG group is expanding its business both upstream and downstream and adopting a diversified strategy to build up its global brand image. The commencement of Hangzhou plant will improve the business chain and strengthen its status in the industry.

Mr. Cao Zhong, the chairman of FDG Electric Vehicles Limited said, "The commencement of mass production of the plant with 100,000 EV annual production capacity, will provide more EV models to meet the strong demand in the domestic market. FDG Group always dedicates to making world-class EV products to the consumers. FDG Group has an edge of its own independent R&D and manufacturing technology in EV and particular battery system, making FDG one of the leading vertically integrated EV manufacturer and the pioneer in EV industry."

(Picture1) Mr. Huang Hongzhan, deputy head of Hangzhou district government of Yuhang, Mr. Meng Gang, deputy secretary-general of Zhejiang province, the convener of joint meeting of encourage provincial new energy vehicle development and promotion Mr. Xu Wenguang, member of the standing committee of Hangzhou municipal committee of the CPC, secretary of Yuhang provincial committee, Mr. Zhao Yide, member of the standing committee of Zhejiang provincial committee, secretary of Hangzhou Municipal Committee attended the ceremony of commence mass production of FDG Group Hangzhou EV manufacturing base

(Picture 2) Mr. Cao Zhong, the chairman of FDG Electric Vehicles Limited, Mr. Miao Zhenguo, the deputy chairman and Dr. Chen Yanping, the chief operating officer were answering the questions from the media

(Picture 3) Mr. Cao Zhong, the chairman of FDG Electric Vehicles Limited was interviewed by the media

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About FDG Electric Vehicles Limited

Listed on the Main Board of HKEx (stock code: 00729.HK), FDG Electric Vehicles Limited is a vertically integrated electric vehicle manufacturer, it is mainly engaged in 1) independent R&D, design and production of electric vehicles such as public buses, mid- size buses, commercial vehicles, passenger vehicles and other models; 2)and in the R&D, manufacturing and sale of lithium-ion battery and battery cathode material and related products; 3)electric vehicle leasing business.

For further information about products and business of FDG, please visit the Group's website at http://www.fdgev.com

Investor and media enquiries:

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Andi Wu / Hazel Hau / Gigi Chan China Times Advisory Corporate Limited Tel : [phone] / 2960 9692 E-mail : [e-mail] [e-mail] [e-mail]