Core Viewpoint - GAC Group has approved the acquisition of a 50% stake in Dongfeng Honda Engine Co., Ltd. by its joint venture GAC Honda, which will lead to Dongfeng Honda Engine becoming a wholly-owned subsidiary of GAC Honda [2][3] Group 1: Acquisition Details - GAC Honda will acquire the 50% stake in Dongfeng Honda Engine through a public transfer, with Honda also increasing its investment in GAC Honda using its remaining 50% stake [2][3] - The acquisition is expected to enhance GAC Honda's integration in the engine business, improve supply chain autonomy and stability, increase management efficiency, reduce operational costs, and boost overall operational effectiveness [3] Group 2: Financial Overview - Dongfeng Honda Engine reported a projected revenue of 9.566 billion yuan for 2024, with a net loss of 228 million yuan; in the first half of the year, it achieved a revenue of 3.807 billion yuan and a net profit of 371 million yuan [3] - As of June, Dongfeng Honda Engine had total assets of 5.23 billion yuan and net assets of 2.512 billion yuan; the starting price for the 50% stake was set at 1.172 billion yuan [3] Group 3: Strategic Implications - The transaction marks a significant shift in the collaboration model between Honda and its partners in China, which has been in place since 1998 [4] - This move is seen as a critical step for GAC Honda to enhance its industry chain layout and drive long-term development [4]