On the evening of November 29, 2021, GAC Group released an announcement that the sixth meeting of the sixth Board of Directors approved by deliberation the motion on GAC AION’s Assets Reorganization and Capital Increase.

According to the Plan, GAC AION will take over the R&D staff of electric sector of GAC R&D Center, and conduct internal asset organization by means of capital increase by cash or capital reserve transfer and asset injection.

The main plan includes: GAC Group will increase capital in GAC AION by a cash of RMB 7.407 billion, and GAC Motor will increase capital in GAC AION by physical assets such as production equipment worthy of RMB 3.557 billion. GAC AION will purchase relevant intangible assets and fixed assets in electric sector of entities such as GAC R&D Center and GAC Motor by payment of a cash of RMB 4.975 billion and assuming liabilities. GAC AION will increase the registered capital by the reserve transfer of some assets. Through internal asset reorganization above, GAC AION’s registered capital increase to RMB 6 billion. A more complete, efficient and scientific R&D capability, business and asset structure is favorable for forming the market-based independent operation ability, enhanced profitability and comprehensive competitiveness.