GAC Group to transfer stake in Greater Bay Technology for optimized investment in new energy battery sector

Shanghai (Gasgoo)- On December 3, 2024, GAC Group convened its 74th meeting of the 6th Board of Directors, approving the resolution to transfer part of its equity in Greater Bay Technology.

According to its announcement, GAC Group will sell its 15.82% stake in Greater Bay Technology ("GBT") to the group's controlling shareholder, Guangzhou Automobile Industry Group Co., Ltd. ("GAC Industry"), for approximately 1.118 billion yuan. Additionally, GAC Capital, a wholly-owned subsidiary of GAC Group, will transfer its 3% stake in GBT to GAC Industry for approximately 212 million yuan.

Following the transaction, GAC Group will no longer hold a direct stake in GBT but will indirectly retain a 15.6% stake through GAC Capital. As per the agreement, GAC Capital will no longer have board or management nomination rights, and GAC Group will cease to exert significant influence over the company. In compliance with accounting standards, the remaining equity held through GAC Capital will be classified as a financial asset and accounted for at fair value.

GAC Group said this move aims to optimize GAC Group's investment portfolio in the new energy battery sector, streamline its asset structure, and enhance resource allocation. By improving management efficiency, the transaction is expected to support the company's core business development, transformation, and strategic goals.

Founded in September 2020, GBT is GAC Group's first internally incubated high-tech enterprise under a mixed-ownership structure. The company specializes in XFC (eXtreme Fast Charging) power batteries and next-generation energy storage systems. Its product lineup includes three major series: ultra-fast, super-fast, and standard fast-charging batteries.

In June 2023, GBT unveiled its "Phoenix Battery," which integrates its innovations in materials, electrochemistry, architecture, and control systems. The company said this technology enables electric vehicles to achieve extreme fast charging across all-weather conditions and voltage platforms. The Phoenix Battery also delivers advantages in safety, lifespan, energy density, range, and cost-effectiveness.

GBT is actively expanding its production capacity. Its first-phase headquarters and manufacturing base in Nansha District, Guangzhou, was completed and began operations in late October 2023. The facility has a total planned capacity of 8 GWh per year, with 4 GWh already operational.