GAC GROUP (02238) surged over 3% in morning trading. As of press time, the stock was up 3.34% to HK$3.4, with a turnover of HK$41.5263 million.

On the news front, GAC Group recently issued a significant announcement, approving the "Proposal on GAC Honda's Equity Investment Related Matters." The announcement clarifies that GAC Honda will acquire a 50% stake in Dongfeng Honda Engine Co., Ltd. (referred to as "Dongfeng Honda Engine") held by Dongfeng Motor Group Co., Ltd. through the Guangdong United Assets and Equity Exchange via public transfer. The listing base price for this transaction is 1.172 billion yuan, funded through cash capital injection.

Notably, the equity structure will remain stable after the transaction completion. According to the announcement, after GAC Honda successfully acquires the 50% stake in Dongfeng Honda Engine, GAC Group will make a cash capital injection into GAC Honda, while simultaneously promoting Honda Motor to inject capital into GAC Honda using its remaining 50% stake in Dongfeng Honda Engine. Upon completion of the dual capital injections, the shareholding ratio between GAC Group and Honda Motor in GAC Honda will remain unchanged at 50:50, while Dongfeng Honda Engine will officially become a wholly-owned subsidiary of GAC Honda, achieving deep integration at the business level.