On the evening of September 14, GAC Group issued an announcement stating it had signed a Letter of Intent with China FAW Co., Ltd. to acquire a portion of the equity in a joint venture vehicle company held by FAW through a share issuance, while concurrently raising supporting funds. Initial estimates indicate that upon completion, FAW would become the second-largest shareholder of GAC Group with strategic influence. The transaction is expected to constitute a major asset restructuring and related-party transaction, without triggering a change in the company's actual controller or constituting a backdoor listing. GAC Group's A-shares have been suspended from trading since market open on September 14, with the suspension expected to last no more than 10 trading days.

The target is believed to be FAW Toyota, with a potential transaction value of up to 20 billion yuan. The announcement shows the target company's scope covers automotive technology R&D, parts manufacturing and sales, complete vehicle sales, and road motor vehicle production, with the name temporarily withheld due to the involvement of an overseas listed company. Sources close to FAW have revealed to media that the joint venture in question is FAW Toyota. GAC Group already operates GAC Toyota, and both parties having business ties with the same brand provides a foundation for cooperation. According to market discussions, GAC Group may acquire approximately 25% of FAW Toyota's equity for around 20 billion yuan. Based on a pre-suspension share price of 5.09 yuan, FAW would hold approximately 27.8% of GAC Group's shares. FAW Toyota's net profit in 2024 was approximately 4.66 billion yuan, meaning a 25% stake would correspond to a profit share of roughly 1.16 billion yuan. GAC Group would pay via new shares, gaining investment income and future dividends from the joint venture without cash outflow, buying time for its own-brand restructuring.

GAC Group stated the deal aims to promote the integration of industrial resources between local state-owned enterprises and central enterprises, enhancing the listed company's operational efficiency. Analysts suggest GAC Group has strong technical expertise in new energy vehicle R&D, three-electric systems, and intelligent cockpits, while FAW's vast traditional business scale means its electrification transition requires broader implementation, with resource complementarity forming the core logic for cooperation. If successful, the combined annual sales of the restructured entity would exceed 5.1 million vehicles based on 2025 sales figures for FAW and GAC Group, surpassing both BYD and SAIC Motor.

Net losses widened to 4.467 billion yuan as new energy vehicle sales surged 68.8%. In the first half of 2026, GAC Group achieved total operating revenue of 46.5 billion yuan, up 9.13% year-on-year with revenue turning from decline to growth. The net loss attributable to shareholders stood at 4.467 billion yuan, expanding 75.98% from 2.538 billion yuan in the same period last year, while non-GAAP net loss reached 5.209 billion yuan, up 76.86%. Vehicle sales totaled 773,100 units in the first half, up 2.35% year-on-year. Among these, new energy vehicle sales hit 260,200 units, representing a substantial 68.80% surge. Combined sales of energy-saving and new energy vehicles reached 485,600 units, raising their share of total sales to 62.82%, an increase of approximately 14 percentage points from the prior-year period.

In energy storage and battery operations, GAC Group's subsidiary Inpaic Battery Technology Co., Ltd. has invested a total of 10.9 billion yuan, focusing on R&D and production of power and energy storage batteries. Planned total capacity exceeds 60GWh, with an 18GWh mass production line already completed. Over the next three years, planned energy storage capacity will surpass 70GWh, forming a 3:7 power-to-storage business structure. In March this year, Inpaic Battery, in collaboration with the National New Energy Storage Innovation Center, launched the "Da Fang Wu Yu" series of 587Ah storage cells, including both the Qiankun version (hybrid solid-liquid electrolyte) and Haohan version (liquid electrolyte) technology routes. The concurrently built 6.5GWh dedicated storage cell production line commenced full operation in September, with the 587Ah cells officially entering mass production and moving into scaled commercial application.