GAC Subsidiary Sells 12% Kunlun Blue Diamond Stake to Parent for RMB 1.92 Billion

GAC Group (SHA: 601238) announced that its subsidiary, Youpai Energy, plans to transfer its 12% equity stake in Xinjiang Kunlun Landrill Mining Development Co., Ltd. to GAC Industrial Group, the company's controlling shareholder, for approximately RMB 1.92 billion. The transaction has been approved by the company’s board of directors, constitutes a related-party transaction, but does not constitute a major asset restructuring. Following the transaction, GAC Group will still indirectly hold an 8% stake in Kunlun Landrill; however, it will no longer exert significant influence over the company, and the remaining equity interest will be accounted for as a financial asset. GAC stated that the divestiture aims to optimize its asset structure, revitalize non-core existing assets, and recycle capital to further focus on its core automotive business.