Guangzhou Automobile Group signed a Letter of Intent with China FAW Co., Ltd. on September 14, 2026, to acquire part of FAW’s stake in an undisclosed vehicle joint venture through a share issuance, alongside a concurrent capital raise. If completed, FAW Co. would become GAC’s second-largest shareholder with strategic influence. GAC said the transaction is expected to constitute a major asset restructuring and related-party transaction, but would not change its actual controller or constitute a backdoor listing. The target’s name was withheld because it involves an overseas listed company, and no legally binding definitive agreement has been signed. GAC suspended its Shanghai-listed A-shares for no more than 10 trading days while it advances the plan, which remains subject to internal decisions and regulatory approvals. The proposal comes as GAC faces weak sales, losses, underused capacity and intensifying competition in China’s auto market.