GAC GROUP(SH:601238) Chang Jiang Shang Bao·2025-06-23 00:48Core Viewpoint - The recent turmoil surrounding GAC Aion has raised concerns about its employee stock ownership plan and the company's IPO prospects, which have been delayed, leading to significant financial pressure on employees who participated in the plan [1][4][6]. Company Developments - GAC Aion's IPO plan has been stalled since 2022, with the company initially aiming for a valuation exceeding 100 billion yuan [5][9]. - The company faced a decline in sales, with a reported 11.77% decrease in the first five months of 2025, totaling 88,800 vehicles sold [1][9]. - GAC Group's revenue for 2024 was 107.78 billion yuan, marking a 16.90% decline, and its net profit dropped by 81.40% to 824 million yuan, the lowest since 2005 [9][10]. Employee Stock Ownership Plan - In 2022, GAC Aion implemented an employee stock ownership plan, where employees invested approximately 1.8 billion yuan, holding 4.55% of the company [5][6]. - Employees are required to start repaying principal on their loans by the end of June 2025, but due to a significant drop in company valuation, they may only recover 42% of their investment if forced to liquidate [4][8]. - GAC Aion's management has publicly denied rumors regarding high-level executives receiving full refunds and interest compensation, emphasizing that the employee stock plan is proceeding normally [7][8]. Market Position and Future Outlook - GAC Aion was once ranked third globally in the electric vehicle sector, but its sales have significantly declined, with a 21.9% drop in 2024 compared to the previous year [9][10]. - The company is undergoing a transformation strategy, including a three-year plan initiated in November 2024 to enhance operational efficiency and product development [10]. - The timeline for GAC Aion's IPO remains uncertain, with ongoing efforts to stabilize the company and improve its market position [2][10].