Guangzhou Automobile Group Co., Ltd. (GAC Group) has signed an agreement of intent with FAW Group Co., Ltd. (FAWG) to purchase part of FAWG’s equity in a mainland automobile manufacturing joint venture. Consideration will be settled through the issuance of new A shares, alongside a concurrent fundraising exercise.

Upon completion, FAWG is expected to become GAC Group’s second-largest and strategically influential shareholder. The contemplated deal is classified as both a material asset reorganisation and a related-party transaction under Shanghai Stock Exchange (SSE) regulations. Management confirmed that the transaction will not trigger a change in the company’s ultimate controller and does not constitute a reorganisation for relisting purposes.

The transaction remains at a preliminary planning stage. No definitive agreement has been executed, and the deal is subject to internal approvals and regulatory consent.

To ensure orderly disclosure, trading in GAC Group’s A shares (SSE: 601238) has been suspended from the opening session on 14 September 2026 for up to 10 trading days. During this period, the board intends to finalise a preliminary reorganisation plan and seek trading resumption.

H shares were halted in Hong Kong at 9:30 a.m. on 14 September 2026 pending this announcement; trading will resume at 9:00 a.m. on 15 September 2026.

The unnamed target company operates in the automobile manufacturing industry (industry code C36) and is currently a joint venture partner of FAWG. Further details, including the JV’s identity and specific transaction terms, will be released in the formal reorganisation documents.

GAC Group cautions investors that the deal’s execution is uncertain and remains contingent on additional approvals. Shareholders and prospective investors are advised to exercise vigilance when dealing in the company’s securities.