GAC group to acquire 50% stake in Dongfeng Honda engine

Guangzhou Automobile Group Co., Ltd. (GAC Group) announced its board of directors has approved the acquisition of a 50% equity stake in Dongfeng Honda Engine Co., Ltd. The acquisition, valued at RMB 1,172,485,400, will be executed through the Guangdong United Assets and Equity Exchange by Guangqi Honda Automobile Co., Ltd. (Guangqi Honda), a 50:50 joint venture between GAC Group and Honda. GAC Group will provide cash capital injection to Guangqi Honda to fund this transaction.

Following the acquisition, Dongfeng Honda Engine will become a wholly-owned subsidiary of Guangqi Honda. GAC Group and Honda will maintain their 50:50 shareholding in Guangqi Honda, ensuring balanced ownership. This move is expected to integrate Guangqi Honda’s engine operations, enhance supply chain stability and independence, improve management efficiency, reduce costs, and boost operational profitability, laying a solid foundation for future intelligent and electrified transformations.

In other board resolutions, GAC Group approved revisions to its "Information Disclosure Management System" and the establishment of a "Management System for Funds Raised through Corporate Bonds and Interbank Non-financial Enterprise Debt Financing Instruments." All proposals received unanimous approval from the ten participating directors.