On February 28, Changan Automobile announced that its affiliate, Avatar Technology, has successfully completed the payment of the second transfer price of 5.75 billion yuan to Huawei. This milestone signifies a significant progression in the strategic collaboration between Avatar Technology, Changan Automobile, and Huawei, transitioning from mere industrial cooperation to a novel form of strategic alliance grounded in capital ties. This development will propel Avatar Technology and Changan Automobile to the forefront of automotive intelligence, fostering a competitive edge and fostering accelerated growth for both entities. It is noteworthy that this transaction does not alter the scope of Changan Automobile's consolidated financial statements and is not anticipated to have a material impact on its financial standing or operational outcomes in the near term.