Gasgoo Munich- GAC Group (HK2238) announced that its subsidiary, Youpai Energy Technology (Guangzhou) Co., Ltd., plans to sell a 12% stake in Xinjiang Kunlun Lanzuan Mining Development Co., Ltd. to the group's controlling shareholder, Guangzhou Automobile Industry Group Co., Ltd. The deal, valued at approximately 1.92 billion yuan based on assessed prices, constitutes a related-party transaction and has received the necessary approvals.
According to the filing, the transferor is GAC's subsidiary Youpai Energy, while the buyer is the group's controlling shareholder, Guangzhou Automobile Industry Group. The asset in question is the 12% stake in Xinjiang Kunlun Lanzuan Mining Development.
Image Source: GAC Group
Prior to the sale, Youpai Energy held roughly 20% of Kunlun Lanzuan. Once the transaction closes, its stake will fall to 8%, ending its significant influence over the miner. The remaining equity will be accounted for as a financial asset at fair value.
Kunlun Lanzuan specializes in lithium exploration and development. The divestiture aims to unlock value from non-core assets and raise capital, helping GAC Group optimize its balance sheet and funnel resources into core operations like vehicle manufacturing and new-energy R&D. By retaining an 8% stake, Youpai Energy can still capture future upside from lithium development while balancing risk.
The 1.92 billion yuan price tag will be paid in installments under terms outlined in the agreement. GAC Group expects the transaction to boost its 2026 consolidated net profit attributable to shareholders, though the final impact depends on annual audit results. The deal is currently moving through the necessary follow-up procedures, with updates to be disclosed as required by regulators.
