GAC Group (02238): Dongfang Huili Personal Finance Co., Ltd. will subscribe for GAC Leasing with an additional registered capital of 1.7 billion yuan

According to the Zhitong Finance App, GAC Group (02238) issued an announcement. On October 15, 2024, the company signed a share expansion and capital increase agreement with the indirect wholly-owned subsidiary GAC Leasing and the subscriber Oriental Huili Personal Finance Co., Ltd. on the date of this announcement. Based on this, GAC Leasing will increase its registered capital from RMB 1.7 billion to RMB 3.4 billion. As the successful bidder of GAC Leasing's public listing on the Guangzhou Property Exchange, the subscriber will subscribe for GAC Leasing's additional registered capital of RMB 1.7 billion, at a cost of RMB 2,132.5 billion (equivalent to HK$2,337.6 billion).

According to the announcement, GAC Leasing will benefit from the additional capital raised through the stock expansion and capital increase project. Proceeds from the share expansion and capital increase will mainly be used to enrich the working capital of GAC Leasing to promote the expansion of the Group's financial leasing business and enable the Group to strengthen the auto finance market, thereby enabling the Group to sell new vehicles.