GAC Group plans bond issuance, governance reform with supervisory committee cut

Guangzhou Automobile Group (GAC Group) approved issuing corporate bonds and medium-term notes, each not exceeding RMB 150 billion. The company aims to diversify financing, improve debt structure, and reduce costs. These will be issued in tranches to professional investors, with proceeds slated for interest-bearing debt repayment, equity investments, and working capital, pending regulatory approval. The proposals await shareholder approval.

GAC Group also announced changes to its registered capital and Articles of Association, effective upon shareholder approval. The company's total share capital will be reduced from 10,463,957,657 shares to 10,197,065,900 shares, reflecting past equity incentive plans and share repurchases.

A key governance reform is the cancellation of the Supervisory Committee, with its responsibilities transferred to the Audit Committee. The company also approved a related-party transaction with Guangzhou Zhicheng Industrial Co., Ltd. for RMB 530 million in outdoor advertising services, supporting brand promotion.