On November 29, GAC Group (601238.SH) issued an announcement stating that the company’s board of directors reviewed and approved the “Proposal on the Asset Reorganization and Capital Increase of GAC E’an.”
It is understood that during this internal reorganization, GAC Aian, a wholly-owned subsidiary of GAC Group, will take over R&D personnel in the field of pure electric new energy from the Automotive Engineering Research Institute of Guangzhou Automobile Group Co., Ltd. (hereinafter referred to as GAC Research Institute), and increase capital through cash. , Asset injection, cash purchase and capital reserve transfer to increase registered capital to implement internal asset reorganization.
It is worth mentioning that during the Guangzhou Auto Show this year, GAC Aian General Manager Gu Huinan once told the reporter of “Daily Economic News” that at that time, GAC Aian had already reorganized personnel and R&D business with the GAC Research Institute. The research and development team of Sanden has nearly 600 people, and some of the patented technologies and R&D centers have also been transferred to GAC Aian.
In addition, the announcement also showed that GAC Group increased its capital to GAC Aian with 7.407 billion yuan in cash, and GAC Passenger Vehicle Co., Ltd. (hereinafter referred to as GAC Passenger Vehicle) increased its capital to GAC Aian with 3.557 billion yuan in production equipment and other physical assets; GAC Aegis Ann purchases the intangible assets and fixed assets related to the pure electric new energy field of GAC Research Institute, GAC Passenger Cars and other entities by paying 4.975 billion yuan in cash and assuming liabilities; GAC Aion will increase the registered capital with part of the capital reserve .
After the above-mentioned internal asset reorganization, the registered capital of GAC E’an will increase to 6 billion yuan. Since all parties to the transaction are wholly-owned subsidiaries and branches of GAC Group, before and after the transaction, GAC Group still holds 100% equity of GAC Aian. At the same time, the purpose of this transaction is to promote the independent operation of GAC E’an and will not have a material impact on the continued operation of the company’s other business segments.
Feng Xingya, general manager of GAC Group, said in an interview with reporters that the current state-owned shareholding ratio of GAC Aian is about 50%, and its state-owned shareholding ratio may drop to 20%~30% after the mixed reform.
GAC Group stated that this transaction aims to promote the independent operation of GAC E’an. In the future, GAC Ion will further promote employee shareholding and the introduction of strategic investors. In the future, GAC Ion will make full use of the capital market, actively seek to go public at an appropriate time, build an independent capital market platform and market-based incentive mechanism, and promote the company and GAC. Sustainable development of Aian.
“At present, GAC Aian’s plan for employee shareholding has been completed, and employee shareholding may be completed before the end of the year. Next year, the company will fully complete the mixed reform and go public at the right time.” During the 2021 Guangzhou Auto Show, Gu Huinan was interviewed by reporters Shi said that before the end of this year, GAC Aian will identify the first batch of strategic investors to achieve Series A financing.
As of the close of November 29, the share price of GAC Group Hong Kong (02238.HK) fell 2.27% to HK$7.75 per share; the share price of A shares (601238.SH) fell 2.06% to RMB 15.72 per share.
Cover image source: Photo by reporter Zhang Jian (data map)
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