On October 29, 2018, Guangzhou Automobile Group Co., Ltd. (hereinafter referred to as “GAC”) released the third quarter report. The report shows that all major business indicators of GAC have achieved positive growth. From January to September, GAC’s total business revenue was 53.508 billion yuan, a year-on-year increase of 3.64%; the net profit attributable to owners of the parent company was 9.86 billion yuan, a year-on-year increase of 10.02%. It is worth mentioning that in the third quarter, the investment income of GAC reached 7.675 billion yuan, a year-on-year increase of 11.90%. On one hand, this is due to the continuous growth of independent brands, successive launch of new products and enhancement of product strength. In the first three quarters, the independent brand GAC Trumpchi sold nearly 400,000 vehicles, with an investment income of 7.68 billion yuan, a year-on-year increase of 820 million yuan by 11.9%; on the other hand, joint ventures such as GAC Honda, GAC Toyota and GAC Mitsubishi have continuously launched new products.  Camry and Accord have achieved significant growth, and models such as Vezel and Levin fulfilled steady growth. All three companies have achieved double-digit growth of net profit.

　　In September 2018, GAC’s production and sales reached a historical high, and continued to grow in spite of market recession. In September, 193,700 vehicles were produced, an increase of 20.08% from the previous month. The sales were 198,000 units, an increase of 14.11% from the previous month and a year-on-year of 5.84%, 17.4 percentage points higher than the industry’s growth rate (-11.6%). From January to September, GAC produced 1,598,300 vehicles, a year-on-year increase of 7.58%, and sold 1,558,800 vehicles, a year-on-year increase of 6.24%, and 4.74 percentage points higher than the industry’s 1.5% year-on-year increase. Among them, the year-on-year sales growth of GAC Toyota and GAC Mitsubishi both exceeded 20%. The sales growth of GAC Honda and GAC Motor was also higher than that of the industry.

　　In the fourth quarter, despite dramatic market changes, all GAC employees will catch up in the face of adversity, seek breakthroughs in the predicament and concentrate on steady growth. Besides, they will continue to attach great importance to production and operation to secure fulfillment of the Group’s annual goal.

　　While building on the present, we shall also plan for the future. While achieving rapid and steady development, GAC has always been seeking transformation and upgrade based on  “one focus, two principles and three transformations”. GAC insists on internal collaborative innovation, and external open cooperation to actively embrace the trend of intelligent connected new energy vehicles. This April, GAC respectively signed strategic cooperation agreements with Cisco China and Didi to embrace more extensive cooperation in terms of driverless technology, new energy vehicle, big data applications and mobility services. In addition, GAC already reached strategic cooperation with such partners as Huawei, Tencent, NIO, China Mobile and iFlytek. GAC is accelerating the development and application of intelligent connected vehicles. On July 18, GAC established a joint venture with CATL. Both Parties want to further deepen the cooperation in the industrial chain and accelerate the breakthrough in “electrification”; by the end of this year, the first phase of GAC’s Industrial Park for Intelligent and Connected NEVs with a capacity of 200,000 units will be completed; GAC mobility platform will be put into operation next year; starting from 2019, GAC will launch one model of pure electric vehicle every six months. It is estimated that by 2020, new energy vehicle products will account for 10% of the Group’s total vehicle production and sales.

　　In October, Fortune China published the Fortune Future 50 2018 List. GAC ranked 23rd, ranking the highest among nominees from China. It was also the only Chinese state-holding carmaker on the list. The Fortune Future 50 2018 List represents the ranking of global enterprises with most promising long-term prospects. 21 Chinese companies were on the List in 2018.