GAC will sell more than half of its interest in Greater Bay Technology,[Ep4] Secret Campus one of its two electric vehicle battery units, to its parent company, the Guangzhou Automobile Industry Group, in a transaction aimed at improving the balance sheet of the mainland-listed automaker. GAC will hold an indirect stake of 15.6% in the battery maker after the RMB 1.3 billion ($179 million) deal, which will see its net income increase by RMB 2.2 billion in the fiscal year of 2024, the automaker said in a filing on Tuesday. Set up in 2020 with a focus on high-performance, nickel- and cobalt-based batteries with fast charging capabilities, Greater Bay Technology recorded a net loss of RMB 449 million during the first nine months of this year. GAC, a manufacturing partner of Toyota and Honda in China, is also making affordable iron-based lithium-ion batteries with another wholly-owned subsidiary, Inpai Battery Technology Co., Ltd. Sales of GAC’s new energy vehicles, which refer to all-electrics and plug-in hybrids, slumped by 23% to 377,421 units as of November this year. [GAC filing, in Chinese]
