Guangzhou Automobile Group (02238) plans to sell a 12% equity stake in Xinjiang Kunlun Blue Diamond Mining Development Co., Ltd. for 1.92 billion yuan.

Guangzhou Automobile Group (02238) announced that on March 31, 2026, Yuopai Energy (a wholly-owned subsidiary of the company) entered into an agreement with GAC Group Industrial to sell 12% equity interest in Xinjiang Kunlun Blue Diamond Mining Development Co., Ltd., a target company, to GAC Group Industrial for a consideration of approximately RMB 1.92 billion. Upon completion, GAC Group Industrial will become a shareholder of the target company, directly holding 12% equity, while the indirect equity held by the company in the target company will decrease from 20% to 8%. In response to the profound changes in the automotive industry market landscape and intense market competition, the company plans to optimize its asset structure, revitalize non-core assets, and raise funds through the sale transaction to further focus on its core automotive business, concentrate resources on enhancing core competitiveness, and lay a foundation for the future development and improvement of the business. The sale transaction is a proactive optimization and integration of the company's existing equity investment assets based on its development plan and industry conditions, aiming to improve the efficiency of resource and fund utilization. In the short term, it can realize equity transfer income to provide support for future development; in the long term, it can still share future development dividends of the target company through subsidiary holding of equity, increase investment returns, and reduce investment risks. It is reported that the main business of the target company includes mineral washing and processing, sales of metal ores, sales of mining machinery, sales of chemical products (excluding licensed chemical products), investment activities with its own funds, non-coal mineral resource extraction, mineral resource exploration, accommodation services, and power supply.