China Zenix Auto International Limited (OTCPK:ZXAI.Y) announced that its Board of Directors (the "Board") has received a non-binding preliminary proposal letter, dated August 9, 2021, from Mr. Jianhui Lai, the Company's Chairman and Chief Executive Officer ("Chairman Lai"), and Newrace Limited, a company incorporated in the British Virgin Islands and wholly owned by Chairman Lai, to acquire all the outstanding shares ("Shares"), including Shares underlying the American depository shares ("ADSs"), not currently beneficially owned by Chairman Lai, Newrace Limited and their affiliated companies (together the "Purchasers"), in a going private transaction (the "transaction"). The Purchasers currently beneficially own in the aggregate approximately 69.5% of the issued and outstanding Shares on a fully diluted basis, which gives them 69.5% of the total voting power that may be exercised in a general meeting of shareholders. The proposed purchase price is $0.90 per ADS (or $0.225 per Share, based on one ADS representing four Shares) in cash, representing a premium of around 309% over the ADS closing trading price of $0.22 per ADS on August 6, 2021. If the transaction proceeds, the Company will become a wholly owned subsidiary of Newrace Limited, the ADSs (including the Shares underlying the ADSs) will be terminated from registration under the Securities Exchange Act, and the Company will cease to have reporting obligations to the U.S. Securities and Exchange Commission ("SEC"). Based on the proposal letter, the Purchasers intend to finance this transaction through a combination of debt, rollover equity and cash. The Board has established a special committee comprised of independent and disinterested directors to evaluate this proposal. The committee will retain independent advisors, including independent financial and legal advisors, to assist it in this process. The Company cautions that this proposal constitutes only a preliminary indication of the Purchasers' interest and does not constitute any binding commitment with respect to the transaction proposed or any other transaction. No agreement, arrangement or understanding between the Company and the Purchasers relating to any proposed transaction, will be created until such time as definitive documentation has been executed and delivered by the Purchasers to the Company and all other appropriate parties. There can be no assurance that any definitive offer will be made by the Purchasers, that any definitive agreement will be executed relating to the proposal or any other transaction, or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.