Chinese carmaker GAC Group has signed a letter of intent with FAW Group to buy part of the equity interest FAW owns in an unnamed automotive joint venture (JV).

The proposed purchase is due to be carried out through a share issuance by GAC Group together with a supporting fundraising exercise.

GAC Group said it is not yet naming the JV, stating that the restructuring involves a company listed overseas and that more information will be released after the restructuring plan is finalised.

Trading in GAC Group’s A shares was suspended from the opening of the market on 14 September 2026, when the announcement was issued, while the proposed transaction is pending.

According to the translated version of the statement, GAC Group said the deal is expected to be treated as both a material asset restructuring and a connected transaction, while adding that it would not alter the company’s ultimatecontrolling party or amount to a backdoor listing.

The JV involved in the proposed deal classified under the automobile manufacturing category under China’s Classification of National Economic Industries.

Its stated business scope includes technical services, technology development, research and manufacturing of auto parts, sales of new vehicles and parts, motor vehicle repair and maintenance, and the manufacture and sale of automotive decorative products.

It also holds licences for road motor vehicle production and for vehicle inspection and testing.

The company described the letter of intent as a preliminary step and said the final terms of the transaction are still subject to a formal agreement and regulatory approval.

FAW, named as the initial counterparty in the transaction, was set up as a joint stock company on 28 June 2011 and is based in Changchun, Jilin Province.

Its operations cover vehicle manufacturing, including new energy vehicles, as well as the design and manufacture of parts including engines and transmissions, engineering and technology research, and sales of new and used vehicles.