Guangzhou Automobile Group (02238.HK) plans to increase its capital to Guangzhou Honda by approximately 11.725 billion yuan.

The Zhitong Financial APP News, GAC Group (02238.HK) announced that on October 30, 2025, the company's major joint control entity GAC Honda and Dongfeng Motor Group have entered into a property transaction contract. Dongfeng Motor Group plans to sell 50% equity of Dongfeng Honda's engine to GAC Honda for a price of approximately 1.1725 billion yuan. After entering into the property transaction contract, on November 10, 2025, the company entered into a capital increase agreement with Honda, Honda China, and GAC Honda. According to the agreement, GAC Honda's registered capital will be increased from 541 million US dollars to approximately 867 million US dollars. The company, Honda, and Honda China will collectively subscribe for approximately 326 million US dollars (equivalent to approximately 2,544,484,488 Hong Kong dollars) for the capital increase project according to their respective contribution proportions to GAC Honda. The company will contribute approximately 1.1725 billion yuan, subject to the terms and conditions of the capital increase agreement. After the completion of the capital increase project, the company, Honda, and Honda China will maintain their respective shareholding ratios in GAC Honda and continue to hold 50%, 40%, and 10% of GAC Honda's equity respectively.