As stated in the ‘Notice Concerning Completion of Payment for Issuance of New Shares through Third-party     Allotment and Withdrawal of Shelf Registration’ publicized today, Sanden Holdings Corporation     (Representative Director & President: Katsuya Nishi; head office: Isesaki-shi, Gunma, Japan) (hereinafter     referred to as ‘Sanden’) has conducted the issuance of new shares through third-party allotment following     the completion of payment from Hisense Japan Automotive Air Conditioning Systems Limited Liability     Company, a special-purpose company established by Hisense Home Appliances Group Co., Ltd. (hereinafter     referred to as ‘Hisense Group’)

As a result, we have acquired the funds necessary for structural reforms and investment for future     growth, and as announced in the ‘Approval of Agenda Items at Extraordinary General Meeting of     Shareholders’ on May 27, the debt forgiveness by the creditors has taken effect, and all the necessary     processes required for the Turnaround ADR Procedures have been completed.

From now on, we will steadily implement the Business Revitalization Plan disclosed on May 7, and all of     our directors and employees will work together with indomitable determination to drastically revitalize     our business and achieve sustainable growth.

The automotive industry is actively working on vehicle electrification as a solution to environmental     problems, and the trend toward vehicle electrification is gathering momentum especially in China and     Europe.    
    In order to survive in such a business environment, the Sanden group must further strengthen its     competitive advantages, including ‘cutting-edge technology solutions’ for electric vehicles, its ‘presence     in the growing markets of China and Europe’, and its ‘broad customer base’, which provide the premise to     carry through the Business Revitalization Plan.

To this end, it is essential to maximize the synergies brought by the capital and business alliance with     Hisense Group . We will provide the integrated thermal management system with more advanced air     conditioning control by utilizing the Hisense Group’s IoT technologies for vehicle and AI-based control     technologies. In the short term, we will create significant synergies through joint procurement of raw     materials and electronic components, utilization of human resources, and mutual complementation of bases     and technologies. In the medium and long term, we will lead the ‘change in thermal management technology’     for NEVs, and aim to further expand our market share by promoting advanced initiatives in the field of     automotive electronics.

We are confident that we will be able to initiate new change of the fusion of the automotive and     electronics industries in the era of CASE by combining Sanden’s competitiveness and Hisense Group’s     superior cutting-edge technologies, so that we will also be able to create greater values for our     customers. As a core company of Hisense Group in the field of in-vehicle electronics, Sanden will lead the     world and contribute to the realization of a decarbonized society so that it will be able to achieve its     future vision of ‘creation of an affluent society where the environment and comfort are in harmony’.