GAC Sells Majority Stake in Battery Unit to Parent Company Amid Losses
Guangzhou Automobile Group (GAC) has announced the sale of more than half of its interest in Greater Bay Technology, one of its two electric vehicle battery subsidiaries, to its parent company, the Guangzhou Automobile Industry Group. The transaction, valued at RMB 1.3 billion ($179 million), is designed to improve the balance sheet of the mainland-listed automaker. Following the deal, GAC will retain an indirect stake of 15.6% in the battery maker. The company stated that this move is expected to increase its net income by RMB 2.2 billion for the 2024 fiscal year. Greater Bay Technology, established in 2020 to focus on high-performance nickel- and cobalt-based batteries, reported a net loss of RMB 449 million in the first nine months of the year. This strategic divestment occurs as GAC faces broader challenges, including a 23% slump in new energy vehicle sales, which dropped to 377,421 units by November. GAC continues to develop affordable iron-based lithium-ion batteries through its wholly-owned subsidiary, Inpai Battery Technology.
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GAC Sells Majority Stake in Battery Unit to Parent Company Amid Losses
Guangzhou Automobile Group (GAC) has announced the sale of more than half of its interest in Greater Bay Technology, one of its two electric vehicle battery subsidiaries, to its parent company, the Guangzhou Automobile Industry Group. The transaction, valued at RMB 1.3 billion ($179 million), is designed to improve the balance sheet of the mainland-listed automaker. Following the deal, GAC will retain an indirect stake of 15.6% in the battery maker. The company stated that this move is expected to increase its net income by RMB 2.2 billion for the 2024 fiscal year. Greater Bay Technology, established in 2020 to focus on high-performance nickel- and cobalt-based batteries, reported a net loss of RMB 449 million in the first nine months of the year. This strategic divestment occurs as GAC faces broader challenges, including a 23% slump in new energy vehicle sales, which dropped to 377,421 units by November. GAC continues to develop affordable iron-based lithium-ion batteries through its wholly-owned subsidiary, Inpai Battery Technology.
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