GAC Group proposes bond issuance, governance overhaul

Guangzhou Automobile Group Co., Ltd. has announced plans for a significant overhaul of its financial and governance structures. The company proposes issuing corporate bonds and medium-term notes, each with a maximum issuance size of RMB15.0 billion and a term not exceeding 10 years. These initiatives aim to broaden financing channels, refine debt structure, lower financing costs, and enhance fund management flexibility, supporting the company's growing production and operation scale.

The company also plans to change its registered capital and amend its Articles of Association, Rules of Procedures of General Meetings, and Rules of Procedures of the Board. These governance changes are in response to the newly amended Company Law of the PRC, which came into effect on 1 July 2024, and revised guidelines from the China Securities Regulatory Commission issued on 28 March 2025. The reforms include abolishing the supervisory committee, with its duties transferring to an audit committee, and strengthening shareholder rights and accountability.

Shareholders will vote on these resolutions at the 2025 third extraordinary general meeting on 29 September 2025. Resolutions concerning the issuance of corporate bonds and medium-term notes, along with the capital change and Articles of Association amendments, require special resolutions.