Core Viewpoint - GAC Group is restructuring its R&D capabilities by splitting the GAC Research Institute into three specialized institutes to enhance its overall R&D efficiency and adapt to rapid technological and market changes [1][5][6]. Group 1: Organizational Changes - GAC Research Institute will be divided into three entities: Styling Design Institute, Vehicle Development Research Institute, and Platform Technology Research Institute, which will collectively form a "large R&D system" alongside the product department [2][5]. - The new structure aims to strengthen group-level R&D capabilities and integrate product development with market insights [5][6]. Group 2: R&D Strategy - The restructuring is part of a broader initiative to create a world-class integrated R&D system for smart vehicles, focusing on the Integrated Product Development (IPD) process [5][6]. - The new R&D framework emphasizes a dual-driven approach of "market + technology," shifting from a purely technical focus to a more market-oriented strategy [6]. Group 3: Financial Performance - GAC Group reported a significant decline in financial performance, with a projected revenue of 107.8 billion yuan in 2024, down 17% year-on-year, and a net profit drop of 81.4% to 824 million yuan [8]. - The company also experienced its first-ever loss in non-recurring net profit, amounting to 4.35 billion yuan, highlighting the urgency of the restructuring efforts [7][8].

Group 1 - GAC Group has completed the restructuring of its product division and research institute into a "large R&D system," which was confirmed to have been implemented on July 1 after a trial period starting April 1 [2][3] - The restructuring aims to align with the Integrated Product Development (IPD) process, enhancing product development efficiency and focusing on consumer needs [2][4] - The new structure includes the establishment of four primary departments: the vehicle development institute, platform technology institute, styling design institute, and product division, all managed directly by GAC Group [2][3] Group 2 - GAC Group has consolidated the product development teams of its brands Aion and Trumpchi into the product division, aiming to improve execution efficiency by unifying previously dispersed R&D resources [3] - The company emphasizes a dual-driven approach of "market + technology" to transition from accidental to inevitable successful product development, focusing on market insights and technological innovation [4] - GAC Group has reported significant improvements in procurement efficiency and cost reduction through a comprehensive supply chain reform and the implementation of a digital procurement system, achieving approximately 50% enhancement in business and decision-making efficiency [5] Group 3 - The company aims to achieve a target of 2 million units in sales for its self-owned brands by 2027, guided by the "Panyu Action" initiative [5]