EV Dynamics Joins Forces with Quantron through a Share Swap to Form a New Electric Vehicle Powerhouse

HONG KONG SAR – Media
OutReach – 29 July 2021 – Ev Dynamics (Holdings) Limited (the “Company”, formerly known as China
Dynamics (Holdings) Limited; Stock Code: 476, together with its subsidiaries,
collectively “Ev Dynamics” or the “Group”), which provides new energy
vehicles and technology integrated solutions, has signed a share swap agreement
with Quantron AG (“Quantron”), a Germany-based company engaging in inner city e-mobility
and regional passenger and freight transport, in a bid to expand its global new
energy vehicle production, engineering, marketing and sales, and after-sale service
setup.

Pursuant to the agreement, Ev Dynamics has conditionally
agreed to subscribe for 6,459 subscription shares of Quantron, representing
approximately 10.18% of the enlarged share capital of the German company,
at a consideration of EUR5,000,000 (equivalent to approximately HK$45,848,191).
The consideration shall be satisfied by the Company via allotment and issuance of
254,712,175 consideration shares at HK$0.18 per share to Quantron.

The issue price of HK$0.18 represents a premium of
approximately 44.00% to the closing price of HK$0.125 per share as quoted on The
Stock Exchange of Hong Kong Limited on 28 July 2021, being the last trading day
prior to the date of the agreement.

Upon completion of the deal, the Company will hold a
total of 9,157
shares of Quantron, representing approximately 14.43% of the enlarged share
capital of the German company.

Mr. Miguel Valldecabres Polop, CEO of Ev Dynamics (left) and Mr. Andreas Haller, member of the board and founder of Quantron (right) believe that the share swap is another milestone in the strategic growth of the two companies.

Mr.
Miguel Valldecabres Polop, CEO of Ev Dynamics, said: “The share swap will enable both companies to speed
up profitable growth and reap synergies from sharing technical knowhow and
respective market coverage. With the favourable policies and market trend of
electrification of passenger and freight transports, Quantron has continued to
receive substantial purchase orders and service quotations from customers and source
e-platform and e-vehicle components from the Group to meet customer demand. The
transaction will allow us to leverage the business network and experience of Quantron
in Europe, giving us a good opportunity to expand into the light and medium e-delivery
trucks market in Europe. Ev Dynamics will become one of the production plants
for Quantron.”

Mr.
Andreas Haller, member of the board and founder of Quantron, said: “Quantron and Ev Dynamics will jointly develop
zero-emission electric vehicles, hydrogen bus and logistic vehicles. The
products and services will be designed and engineered by Quantron, which is
well developed in Germany and Europe, where Ev Dynamics will manufacture the
vehicles. The two companies will evaluate strategic partnerships with fuel cell
technology companies. We believe the share swap is another milestone in the strategic
growth of the two companies.”

Mr.
Michael Perschke, international advisor of EV Dynamics, added: “Quantron is a dominant player in the European electric
vehicle market and Ev Dynamics is a prominent player in China’s new energy
commercial vehicle sector. By joining forces, both companies will gain access not
only to new markets but also additional engineering capabilities.”