GAC Group Plans Share Issue to Buy Stake in FAW Joint Venture, Shares Suspended

GAC Group announced on September 14, 2026 that it had signed a letter of intent with China FAW Corporation Limited to acquire, by issuing shares, part of FAW's equity interest in an automaker joint venture, while also raising matching funds. Based on preliminary estimates, FAW would become GAC Group's second-largest shareholder with strategic influence after the transaction is completed. The announcement said the planned transaction aims to promote the optimized integration of industrial resources between a local state-owned enterprise and a central state-owned enterprise and to improve the listed company's operating performance. The transaction is still at the planning stage and remains subject to uncertainty.

Because the restructuring target involves an overseas-listed company, GAC Group has temporarily withheld the name of the target asset and will disclose it later in the restructuring plan in accordance with regulatory requirements. The company's H shares resumed trading on September 15, 2026. On September 14, Shanghai Stock Exchange suspension and resumption information showed that GAC Group was suspended from trading for the full day because an important matter had not been announced; as of the Hong Kong market close that day, GAC Group's Hong Kong-listed shares closed up more than 8%.

GAC Group is a large joint-stock automotive enterprise group listed in both A shares and H shares as a whole. Its main businesses cover research and development, complete vehicles, components, energy and ecosystem, international operations, commerce and mobility, and investment and finance.

In terms of performance, GAC Group's interim report released on the evening of August 28 showed that consolidated operating revenue for the first half of 2026 exceeded RMB 46.5 billion, up 9.13% year on year, while net profit attributable to shareholders of the parent company was approximately negative RMB 4.467 billion.

On production and sales, GAC Group announced on September 4 that its automobile output in August 2026 was 126,700 units, down 1.18% year on year, and its automobile sales in August were 126,600 units, down 6.71% year on year. Sales of new energy vehicles in August were 56,500 units, up 47.69% year on year. Cumulative sales for 2026 were 1,012,600 units, up 0.21% year on year.