Geely Optimizes Ownership Structure in GAC and Baojun Brands

Geely Group has announced the optimization of its ownership structure in Zhejiang Golden Dragon Automobile Co., Ltd. (GAC) and Jianguli Technology Corp. (Baojun), with its stake in GAC set to increase to approximately 62.8% following the completion of the transaction.

In November, Geely Group published a "Tai State Statement" outlining the company's strategic transformation into a new phase of growth. The group plans to implement five key strategies: strategic focus, integration, cooperation, stability, and talent development. Geely Group aims to concentrate on its automotive business, build a technology ecosystem, enhance competitiveness, maintain steady progress, and drive sustainable development.

The optimization of GAC's ownership structure is a key move in implementing the "Tai State Statement" strategy. To streamline shareholdings, reduce associate transactions, and eliminate industry competition, Geely Group has agreed to transfer its 11.3% stake in Jianguli Intelligent Technology Co., Ltd. (Jianguli) to Geely Automobile Holding Limited (Geely Automobile). Following the completion of the transaction, Geely Automobile's stake in Jianguli is expected to increase to around 62.8%. The company also realigned GAC's ownership structure by giving Jianguli control of 51% of the shares, while the remaining 49% will continue to be held by a wholly-owned subsidiary of Geely Automobile.

As part of the realignment, Geely Group will maintain its commitment to transparency and good governance, as well as optimize capital structures and enhance resource coordination. The group's brands will remain distinct and focused on their unique brand positions, technology planning, and product combinations. Jianguli aims to become a global luxury technological brand with a focus on "luxury, extreme, tech"; GAC wants to be a global new energy brand for the middle and high-end market with its branding centered around "trend, movement, individuality"; Geely Silver Star and China Star will continue to be lead brands focusing on functionality, quality, and safety. The groups' brands plan to expand into niche markets while pursuing cooperative development.

Geely Group's Chairman Li Shufu commented that the strategic integration is a key move in implementing the "Tai State Statement", aiming to enhance synergy among its brands, improve innovation capabilities, profitability, and sustainable development prospects, ultimately forming a stable operational environment where users and investors can expect greater value.