GAC Group announces new shareholding increase by controlling shareholder

Shanghai (Gasgoo)- GAC Group announced earlier this month its controlling shareholder, Guangzhou Automobile Industry Group (“GAC Industry Group”), has purchased another 2.42 million HK-traded shares at HKD6.53 per share, which account for 0.02% of GAC Group's total outstanding stock.

Upon completion of the new shareholding increase, GAC Industry Group will hold 5,502,360,069 shares in GAC Group, equivalent to 52.58% of the latter's total share capital.

Prior to the recent announcement, GAC Industry Group raised its shareholding in GAC Group by 800 thousand HK shares in November 2021, at an average price of HKD7.13 per share.

Photo credit: GAC Group

GAC Group said the latest stake increase means the parent is upbeat about its long-term development prospect and highly recognizes its growth value.

Besides, the move is also conducive to boosting the market confidence over GAC Group, stabilizing the prices of HK-traded shares, and protecting the interests of minority shareholders, the company added.

In April, GAC Group faced a year-on-year decline of over 30% in both monthly auto production and sales volumes partly due to the sporadic coronavirus cases. Nevertheless, the company's year-to-date outputs and sales still grew 8.12% and 7.14% over a year ago respectively.

In the first quarter of 2022, GAC Group's revenue came at 23.145 billion yuan ($3.472 billion), jumping 45.67% from the previous year. Meanwhile, it also scored a 27.17% year-on-year growth in the quarterly net profit attributable to shareholders, which amounted to around 3.009 billion yuan ($451.307 million).

GAC Group aims to achieve a 15% year-on-year growth in both production and sales volumes in 2022.