Gelonghui, April 26, 丨 BRILLIANCE CHI (01114.HK) Notice, on April 17, 2024, Brilliance Renault received the “Housing Expropriation Notice” (Dadong District Political Expropriation Notice [2024] No. 1), “Housing Expropriation Decision” (Dadong District Administration Expropriation [2024] No. 1), and “Notice of the People's Government of Dadong District of Shenyang City on Issuing Housing Expropriation and Compensation and Resettlement Plan for the BMW West Plot in Dadong District” (collectively, the “Expropriation Documents”). The above expropriation matters are led by the Dadong Government, and the land where Brilliance Renault's operating factory is located falls within the scope of expropriation.
According to the expropriation documents, affected entities can enjoy compensation from the Dadong Government in accordance with the “Regulations on Expropriation and Compensation of Housing on State-owned Land” due to proposed expropriation matters. Most members of the board of directors of the company (with the exception of independent non-executive director Lin Jielan, who has expressed different opinions. The reason is the same as stated in the company's announcement dated April 11, 2023, which indicates that the company should consider controlling its losses) agreed to accept the proposed expropriation if the Dadong Government agrees to grant monetary compensation of not less than RMB 450 million and exempt the use of nearby plants and land rent for three years. Brilliance Renault will continue to do its best to negotiate the best preferential compensation with the Dadong government, and as always, continue to do its best to push Brilliance Renault to resume work and resume production.