BAIC Motor to divest international unit, amend governance

BAIC Motor Corporation will dispose of 51% equity interest in its wholly-owned subsidiary, BAIC International, to its controlling shareholder, BAIC Group, for 1,607.5740 million yuan in cash. This transaction, dated November 21, 2025, requires independent shareholders' approval. Post-disposal, BAIC International will no longer be consolidated in BAIC Motor’s accounts, with BAIC Group owning 51% and BAIC Motor retaining 49%. The company expects to recognize a pre-tax disposal gain of approximately 2.2 billion yuan from this sale, with proceeds intended to strengthen working capital and promote business development.

The transaction's consideration is based on an asset valuation report, adopting the income approach, which is considered a profit forecast. This report valued the entire shareholders' equity of BAIC International at 3,152.1058 million yuan as of September 30, 2025. Ernst & Young has reviewed the arithmetical accuracy of the calculations.

In addition to the disposal, BAIC Motor proposes to appoint Gu Xin as a non-executive director, and Chen Geng and Zhu Yan as executive directors. Significant amendments to the articles of association and the rules of procedures for shareholders’ meetings and the board are also proposed, including the dissolution of the board of supervisors and the transfer of its responsibilities to the audit committee. These changes aim to enhance corporate governance and compliance.