Foton Motor boosts guarantees, projects 2026 transactions

Beiqi Foton Motor announced an increase in its related guarantee quota to 103.1 bn yuan (with a maximum guarantee balance of 82.6 bn yuan) for Beijing Aopeng Zhongrong Automobile New Retail Technology Co., Ltd. and its subsidiaries. This adjustment follows a prior increase and is driven by an increase in business, indicating continued financial support and operational alignment within the group. The guarantees are conditional on a counter-guarantee mechanism to mitigate risk for Foton Motor.

Concurrently, Foton Motor outlined its 2026 annual related party transactions, projecting a total transaction volume of 5.58 trillion yuan. These transactions encompass a wide array of activities, including procurement, sales, rental services, and other financial services, with major partners like Beijing Aopeng Zhongrong, Weichai Power, and Beijing Automotive Group. The transactions are stated to adhere to commercial practices, fair pricing, and transparency.

Furthermore, Foton Motor plans to renew its financial services agreement with Beijing Automotive Group Finance Co., Ltd., setting daily maximum deposit and loan balances at 640 bn yuan and 550 bn yuan, respectively, for one year. The company also detailed its 2026 foreign exchange derivatives trading plan, with an authorized quota not exceeding $600m or equivalent in other currencies, to manage currency fluctuation risks. All these proposals require approval at the ninth extraordinary general meeting of shareholders in 2025.