SAIC Motor to restructure Redrock, expand banking ties with China Merchants Bank

SAIC Motor Corporation Limited is preparing for its first extraordinary general meeting of shareholders in 2025 on October 16 to approve two key proposals. The first involves its subsidiary, Shanghai New Energy Automotive Technology Co., Ltd. (Powertech), participating in the restructuring of SAIC-IVECO Hongyan Commercial Vehicle Co., Ltd. (SAIC Redrock). Powertech, along with SAIC General Co., Ltd., and other related parties, will form a consortium to invest 3 billion yuan in the restructuring. Powertech's specific contribution will be 666,363,636.36 yuan, which is expected to secure a 14.66% stake in SAIC Redrock post-restructuring. This transaction constitutes a related-party transaction due to SAIC General Co., Ltd. being SAIC Motor's controlling shareholder.

The second proposal concerns expanding banking operations with China Merchants Bank. SAIC Motor and its affiliated enterprises plan to continue their financial collaboration with China Merchants Bank in 2025. The projected maximum daily deposit balance is 12 bn yuan, and the highest credit line for loans is 45 bn yuan. This also qualifies as a related-party transaction, as Mr. Huang Jian, a director of SAIC Motor, also serves as a non-executive director at China Merchants Bank. Related shareholders will abstain from voting on both resolutions.