Chang Jiang Shang Bao·2025-03-28 00:31Core Viewpoint - GAC Group has denied rumors regarding the acquisition of Evergrande Auto's production capacity, emphasizing that it has sufficient capacity and will focus on utilizing its existing brands [2][3][10]. Production Capacity and Financial Performance - GAC Group's total production capacity reached 3.065 million units per year, with a surplus capacity exceeding 1.15 million units [7]. - In 2024, GAC Group's production is projected to be 1.9117 million units, a decrease of 24.21% year-on-year, while sales are expected to drop by 20.04% to 2.0031 million units [6][10]. - GAC's passenger vehicle production capacity, including GAC Aion, is 1.08 million units, with a projected production of 762,200 units for its self-owned brands in 2024, leaving a surplus of 317,800 units [3][10]. - The company anticipates a net profit of 800 million to 1.2 billion yuan for 2024, representing a year-on-year decline of 72.91% to 81.94% [10]. Strategic Developments - GAC Group has established a new company, Huawang Automotive, focusing on high-end intelligent vehicles, in collaboration with Huawei [4][5]. - The GH project aims to leverage existing production capacity to reduce costs and enhance profitability, rather than pursuing acquisitions [10]. - GAC Group plans to enhance its intelligent driving technology, aiming to rank among the top in China by 2025 and globally by 2027 [5]. Market Reactions - Following the acquisition rumors, Evergrande Auto's stock price surged by 74.79% to 0.21 HKD per share, although it remains classified as a penny stock [14].