GAC GROUP (02238) announced that on October 30, 2025, its significant jointly controlled entity, GAC Honda, entered into an equity transfer agreement with Dongfeng Motor Group. Under the agreement, Dongfeng Motor Group intends to sell its 50% stake in Dongfeng Honda Engine to GAC Honda for approximately RMB1.17 billion.

Following the execution of the equity transfer agreement, on November 10, 2025, the company, Honda, Honda China, and GAC Honda signed a capital increase agreement. According to the agreement, GAC Honda's registered capital will be expanded from USD541 million to approximately USD867 million.

GAC GROUP, Honda, and Honda China will collectively subscribe to approximately USD326 million (equivalent to around HKD2.54 billion) in proportion to their respective shareholdings in GAC Honda. GAC GROUP will contribute approximately RMB1.17 billion, subject to the terms and conditions of the capital increase agreement.

Upon completion of the capital increase, the shareholding ratios of GAC GROUP, Honda, and Honda China in GAC Honda will remain unchanged at 50%, 40%, and 10%, respectively.