Jing Ji Guan Cha Wang·2025-09-30 14:02Core Viewpoint - GAC Group has approved the acquisition of a 50% stake in Dongfeng Honda Engine Co., Ltd. from Dongfeng Motor Group, which will enhance GAC Honda's operational efficiency and support its transition towards electrification and smart technologies [2][3][4]. Group 1: Acquisition Details - GAC Group will acquire the 50% stake in Dongfeng Honda Engine for a base price of approximately 1.172 billion RMB, funded through cash capital increase [2]. - After the acquisition, GAC Honda will become a wholly-owned subsidiary of GAC Group, maintaining a 50:50 ownership structure with Honda Motor [2][3]. - The acquisition is expected to stabilize and enhance the supply chain for GAC Honda, improving management efficiency and reducing costs [2][3]. Group 2: Strategic Importance - The acquisition will enrich GAC Honda's engine product matrix, which is crucial for hybrid and plug-in hybrid vehicles, thereby strengthening its competitive position in the market [3][4]. - This move aligns with GAC Honda's strategic transformation plan, "Yunxin Zhiyuan," aimed at advancing towards an intelligent and electrified future [4]. Group 3: Financial Performance - Dongfeng Honda Engine reported a revenue of 9.566 billion RMB and a net loss of 228 million RMB for the year 2024, while achieving a revenue of 3.807 billion RMB and a net profit of 371 million RMB in the first half of 2025 [3]. - As of June 30, 2025, the total assets of Dongfeng Honda Engine were valued at 5.230 billion RMB, with a net asset value of 2.512 billion RMB [3]. Group 4: Market Context - GAC Honda's sales in China from January to August this year totaled 191,100 units, reflecting a year-on-year decline of 30.27% [6].