Earnings release
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- 1 - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. GUANGZHOU AUTOMOBILE GROUP CO., LTD. 廣 州 汽 車 集 團 股 份 有 限 公 司 (a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 2238) 2026 INTERIM RESULTS ANNOUNCEMENT IMPORTANT NOTICE (I) The Board, the directors and senior management of the Company warrant that the contents contained herei n are true, accurate and complete. There are no false representations or misleading statements contained in or material omissions from this announcement, and they will jointly and severally accept responsibility. (II) All directors of the Company have attended the meeting of the Board . (III) The condensed consolidated interim financial information of the Company is unaudited. The Audit Committee of the Company has reviewed the unaudited interim results of the Company for the six months ended 30 June 2026 and agreed to submit it to the Board for approval. (IV) Feng Xingya, the person in charge of the Company, Wang Dan, the person in charge of accounting function and Dong Yamin, the manager of the accounting department (Chief Accountant), warrant the t ruthfulness, accuracy and completeness of the condensed consolidated interim financial statements contained in this announcement. (V) The forward -looking statements contained in this announcement regarding the Company ’s future plans and development strateg ies do not constitute any substantive commitment to investors and investors are reminded of investment risks. (VI) There is no non-operational appropriation of the Company’s funds by its controlling Shareholder and its related parties. (VII) The Company h as not provided any third -party guarantees in violation of stipulated decision - making procedures.
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- 2 - INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS Unaudited Six months ended 30 June 2026 2025 Note RMB’000 RMB’000 Revenue 4 46,500,339 42,610,941 Cost of sales (48,475,462) (44,460,416) Gross profit (1,975,123) (1,849,475) Selling and distribution costs (3,055,982) (2,602,291) Administrative expenses (2,866,556) (2,558,491) Reversal of impairment losses on financial assets 115,704 3,811 Interest income 67,250 128,065 Other gains – net 1,200,253 1,265,499 Operating loss 5 (6,514,454) (5,612,882) Interest income 96,590 104,794 Finance costs 6 (478,596) (340,227) Share of profit s less losses of joint ventures and associates 7 1,325,821 1,923,079 Loss before taxation (5,570,639) (3,925,236) Income tax (expense)/ credit 8 (348,397) 445,019 Loss for the period (5,919,036) (3,480,217) Attributable to: Equity shareholders of the Company (4,466,859) (2,538,251) Non-controlling interests (1,452,177) (941,966) Loss for the period (5,919,036) (3,480,217) Loss per share (expressed in RMB per share) Basic 9 (0.44) (0.25) Diluted 9 (0.44) (0.25)
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- 3 - INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Unaudited Six months ended 30 June 2026 2025 Note RMB’000 RMB’000 Loss for the period (5,919,036) (3,480,217) Other comprehensive income Items that may be reclassified subsequently to profit or loss – exchange differences on translation of foreign operations 34,383 13,464 – changes in the fair value of debt instruments at fair value through other comprehensive income 11,841 (9,263) – impairment loss on debt instruments at fair value through other comprehensive income 11,269 54,285 –Share of other comprehensive income of joint ventures and associates accounted for using the equity method 3,953 - Items that will not be reclassified subsequently to profit or loss – changes in the fair value of equity investments at fair value through other comprehensive income (717,054) (185,574) Other comprehensive income for the period, net of tax (655,608) (127,088) Total comprehensive income for the period (6,574,644) (3,607,305) Attributable to: Equity shareholders of the Company (5,090,035) (2,671,537) Non-controlling interests (1,484,609) (935,768) Total comprehensive income for the period (6,574,644) (3,607,305)
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- 4 - INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited Audited 30 June 31 December 2026 2025 Note RMB’000 RMB’000 Non-current assets Property, plant and equipment 26,953,850 27,064,287 Investment properties 1,278,694 1,296,884 Intangible assets 18,326,652 17,074,046 Right-of-use assets 8,767,095 8,845,264 Time deposits 1,067,426 1,679,461 Goodwill 93,835 93,835 Investments in joint ventures and associates 7 31,801,284 35,555,649 Financial assets at fair value through other comprehensive income 6,335,158 7,551,277 Financial assets at fair value through profit or loss 6,148,002 5,061,883 Prepayments and other long-term receivables 5,485,480 6,539,412 Deferred tax assets 6,473,593 6,204,446 112,731,069 116,966,444 Current assets Financial assets at fair value through other comprehensive income 10,907,960 13,436,397 Financial assets at fair value through profit or loss 5,307,098 4,382,112 Inventories 23,920,010 16,445,554 Trade receivables and other current assets 11 30,499,973 26,320,405 Contract assets 43,080 2,689 Time deposits 9,528,761 7,228,413 Restricted cash 5,325,245 6,372,038 Cash and cash equivalents 33,386,464 23,843,381 118,918,591 98,030,989
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- 5 - Unaudited Audited 30 June 31 December 2026 2025 Note RMB’000 RMB’000 Current liabilities Trade and other payables 12 63,933,833 54,663,948 Contract liabilities 3,728,779 2,965,855 Current taxation 148,042 83,951 Loans and borrowings 24,882,334 28,082,981 Lease liabilities 267,192 391,492 Provisions 983,029 913,774 93,943,209 87,102,001 Net current assets 24,975,382 10,928,988 Total assets less current liabilities 137,706,451 127,895,432 Non-current liabilities Trade and other payables 12 4,559,497 4,539,157 Loans and borrowings 24,374,184 9,697,265 Lease liabilities 1,975,223 1,808,514 Deferred tax liabilities 548,870 465,762 Provisions 1,815,052 1,560,764 Contract liabilities 105,041 86,252 33,377,867 18,157,714 NET ASSETS 104,328,584 109,737,718 CAPITAL AND RESERVES Share capital 10,197,066 10,197,066 Reserves 46,297,993 46,660,474 Retained earnings 43,963,267 48,428,018 Total equity attributable to equity shareholders of the Company 100,458,326 105,285,558 Non-controlling interests 3,870,258 4,452,160 TOTAL EQUITY 104,328,584 109,737,718
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- 6 - NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION 1 GENERAL INFORMATION Guangzhou Automobile Group Co., Ltd. (the “Company”) and its subsidiaries (together, the “Group”) are principally engaged in the manufacturing and sale of automobiles, en gines and other automotive parts and rendering of financial services. The Company’s holding company is Guangzhou Automobile Industry Group Co., Ltd. (“GAIG”), a state-owned enterprise incorporated in Guangzhou, Guangdong, the People’s Republic of China (the “PRC”). The registered address of the Company is 23/F, Chengyue Building, No. 448 – No. 458, Dong Feng Zhong Road, Yuexiu District, Guangzhou, Guangdong, the PRC. The Company was established in June 1997 as a limited liability company in the PRC. In June 2005, the Company underwent a reorganisation and transformed itself into a joint stock company with limited liability under the Company Law of the PRC. The Company’s shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited and Shanghai Stock Exchange since 30 August 2010 and 29 March 2012, respectively. This condensed consolidated interim financial information is presented in thousands of Renminbi (“RMB”) Yuan, unless otherwise stated. This c ondensed consolidated interim financial information was approved for issue on 28 August 2026. This condensed consolidated interim financial information has not been audited. 2 BASIS OF PREPARATION This condensed consolidated interim financial information for the six months ended 30 June 2026 has been prepared in accordance with Hong Kong Accounting Standard (“HKAS”) 34, ‘Interim financial reporting’. The condensed consolidated interim financial information does not include all the notes of the type normally i ncluded in annual financial statements. Accordingly, this information is to be read in conjunction with the annual report for the year ended 31 December 202 5 which have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”), and any public announcement made by the Company during the interim reporting period.
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- 7 - 3 CHANGES IN ACCOUNTING POLICIES The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2025, as described in those annual financial statements, except for the following amended HKFRS Accounting Standards which have been adopted for the first time in the financial information for the current period. Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature — Dependent Electricity Annual Improvements to HKFRS Accounting Standards – Volume 11 Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 None of these amendments have had a material effect on how the Group’s results and financial position for the current or prior periods have been prepared or presented in this condensed consolidated interim financial information. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.
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- 8 - 4 SEGMENT REPORTING The Group manages its businesses by divisions, which are organised by a mixture of both business lines (products and services) and geography. In a manner consistent with the way in which information is reported internally to the Group’s most senior executive management for the purposes of resource allocation and performance assessment, the Group has presented the following two reportable segments. • Vehicles and related operations segment: production and sale of a variety of passenger vehicles, commercial vehicles, automotive parts and related operations. •Others: mainly production and sale of motorcycles, automobile finance and insurance, other financing services and investing business. For the purposes of assessing segment performance and allocating resources between segments, the Group’s senior executive management monitors the results, assets and liabilities attributable to each reportable segment on the following bases: Segment assets include all tangible, intangible assets and current assets with the exception of interests in joint venture and associates, investments in financial assets, deferred tax assets and other corporat e assets. Segment liabilities include provision for product warranties, trade creditors, accruals, bills payable and lease liabilities attributable to the manufacturing and sales activities of the individual segments and bank borrowings managed directly by the segments. Revenue and expenses are allocated to the reportable segments with reference to sales generated by those segments and the expenses incurred by those segments or which otherwise arise from the depreciation or amortization of assets attributab le to those segments. Segment profit includes the Group’s share of profit arising from the activities of the Group’s joint venture and associates. However, other than reporting inter -segment sales of vehicles and related products, assistance provided by on e segment to another, including sharing of assets and technical know -how, is not measured. During the six months ended 30 June 2026, no revenue from transactions with a single external customer contributed to 10% or more of the Group’s total revenue.
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- 9 - The segment results for the six months ended 30 June 202 6 and other segment items included in the interim condensed consolidated statement of comprehensive income are as follows ： Vehicles and related operations Others Eliminations Unallocated Consolidated RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Six months ended 30 June 2026 Total gross segment revenue 44,045,469 2,830,495 (375,625) - 46,500,339 Inter-segment revenue (192,956) (182,669) 375,625 - - Revenue (from external customers) 43,852,513 2,647,826 - - 46,500,339 Timing of revenue recognition under HKFRS 15 – At a point in time 41,416,524 33,490 - - 41,450,014 – Over time 2,299,306 798,971 - - 3,098,277 Revenue from other sources 136,683 1,815,365 - - 1,952,048 Segment results (7,565,424) 623,873 32,588 566,531 (6,342,432) Unallocated income – Interest income of headquarters - - - 48,440 48,440 Unallocated costs – Expenditure of headquarters - - - (220,462) (220,462) Operating loss (6,514,454) Interest income 73,199 9,306 - 14,085 96,590 Finance costs (338,672) (14,734) - (125,190) (478,596) Share of profit s less losses of joint ventures and associates 1,176,805 149,016 - - 1,325,821 Loss before income tax (5,570,639) Income tax expense (136,796) (183,248) - (28,353) (348,397) Loss for the period (5,919,036)
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- 10 - The segment results for the six months ended 30 June 202 5 and other segment items included in the interim condensed consolidated statement of comprehensive income are as follows: Vehicles and related operations Others Eliminations Unallocated Consolidated RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Six months ended 30 June 2025 Total gross segment revenue 40,293,246 2,635,536 (317,841) - 42,610,941 Inter-segment revenue (124,991) (192,850) 317,841 - - Revenue (from external customers) 40,168,255 2,442,686 - - 42,610,941 Timing of revenue recognition under HKFRS 15 – At a point in time 38,066,272 40,166 - - 38,106,438 – Over time 1,946,876 319,060 - - 2,265,936 Revenue from other sources 155,107 2,083,460 - - 2,238,567 Segment results (6,235,494) 297,623 (37,706) 368,703 (5,606,874) Unallocated income – Interest income of headquarters - - - 107,488 107,488 Unallocated costs – Expenditure of headquarters - - - (113,496) (113,496) Operating loss (5,612,882) Interest income 83,893 11,313 - 9,588 104,794 Finance costs (295,472) (8,578) - (36,177) (340,227) Share of profit s less losses of joint ventures and associates 1,859,779 63,300 - - 1,923,079 Loss before income tax (3,925,236) Income tax credit/(expenses) 579,714 (72,258) - (62,437) 445,019 Loss for the period (3,480,217)
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- 11 - The segment assets and liabilities as at 30 June 2026 and 31 December 2025 are as follows: Vehicles and related operations Others Eliminations Unallocated Consolidated RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Total assets As at 30 June 2026 152,989,110 79,583,941 (75,908,012) 74,984,621 231,649,660 As at 31 December 2025 155,970,458 72,412,053 (74,438,891) 61,053,813 214,997,433 Total liabilities As at 30 June 2026 117,884,923 62,607,189 (74,999,118) 21,828,082 127,321,076 As at 31 December 2025 100,533,104 56,176,737 (61,437,377) 9,987,251 105,259,715 5 OPERATING LOSS The following items have been charged to the operating loss during the period: Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Depreciation and amortisation 5,036,798 3,234,169 Impairment charges of property, plant and equipment and Investment properties 292 - Impairment charges of intangible assets 257,448 - Impairment charges of inventories 549,455 526,397 Net reversal of impairment losses on financial assets (115,704) (3,811) Staff costs 6,513,223 6,665,794 Gains on disposal of property, plant and equipment and intangible assets (19,368) (10,122) Government grants (113,119) (210,393) Donation 5,429 959 Warranty expenses 369,433 370,242
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- 12 - 6 FINANCE COSTS Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Interest expense 458,739 316,484 Others 19,857 23,743 478,596 340,227 7 INVESTMENTS IN JOINT VENTURES AND ASSOCIATES The amounts recognised in the condensed consolidated statement of financial position are as follows: Unaudited Audited 30 June 31 December 2026 2025 RMB’000 RMB’000 Investments in joint ventures 21,679,719 23,274,864 Investments in associates 10,121,565 12,280,785 31,801,284 35,555,649 The amounts recognised in the condensed consolidated statement of profit or loss and other comprehensive income are as follows: Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Share of profits less losses of joint ventures 839,434 1,470,450 Share of profits less losses of associates 486,387 452,629 1,325,821 1,923,079
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- 13 - 7.1 Investments in joint ventures (a) Movements of investments in joint ventures are set out as follows: Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 At the beginning of the period 23,274,864 20,823,230 Additions (Note (i)) 181,233 2,390,895 Reduction (29,943) (77,633) Share of profits less losses 717,627 1,516,221 Dividends declared (2,464,062) (2,364,294) At the end of the period 21,679,719 22,288,419 (i) For the six months ended 30 June 2025, the additions mainly include the transformation of GAC-SOFINCO Leasing from a subsidiary to a joint venture, resulting in an addition of RMB2,132,500,000. (b) Summarised financial information for joint ventures Set out below is the summary of combined financial information for all the joint ventures of the Group (excluding goodwill). As restricted by the confidentiality agreements entered into with other shareholders of certain joint ventures, the Group has not disclosed certain financial data of material joint ventures separately. The below financial information of the joint ventures has been consistently measured based on the fair values of the identifiable assets acquired and the liabilities assumed at the date of acqui sition. The information below reflects the amounts presented in the financial statements of the joint ventures (and not the Group’s share of those amounts) adjusted for differences in accounting policies between the Group and the joint ventures.
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- 14 - Summary of combined financial information of the Group’s joint ventures (excluding goodwill) Unaudited Audited 30 June 31 December 2026 2025 RMB’000 RMB’000 Assets Non-current assets 81,904,623 87,461,708 Current assets – Cash and cash equivalents 35,683,268 47,039,220 – Other current assets 40,481,152 36,526,587 76,164,420 83,565,807 Total assets 158,069,043 171,027,515 Liabilities Non-current liabilities – Financial liabilities (excluding trade and other payables) 23,578,652 26,495,912 – Other non-current liabilities (including trade and other payables) 7,127,181 6,494,635 30,705,833 32,990,547 Current liabilities – Financial liabilities (excluding trade and other payables) 11,101,315 27,634,142 – Other current liabilities (including trade and other payables) 70,805,558 61,625,469 81,906,873 89,259,611 Total liabilities 112,612,706 122,250,158 Net assets 45,456,337 48,777,357 Less: Non-controlling interests - - 45,456,337 48,777,357
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- 15 - Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Revenue 72,647,041 84,345,369 Cost of sales (60,755,513) (67,704,828) Other expenditures (10,229,052) (13,604,513) Profit after tax 1,662,476 3,036,028 Less: profit attributable to non-controlling interests - (353) 1,662,476 3,035,675 Other comprehensive income (1,880) (14,598) Total comprehensive income 1,660,596 3,021,077 8 INCOME TAX EXPENSE/(CREDIT) The amount of taxation charged/(credited) to the condensed consolidated statement of comprehensive income: Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Current income tax 534,436 (60,078) Deferred income tax (186,039) (384,941) 348,397 (445,019) The tax rates applicable to the Company and its major subsidiaries for the six months ended 30 June 2026 are 15% or 25%. (2025: 15% or 25%). Taxation for other overseas subsidiaries is charged at the appropriate current rates of taxation ruling in the relevant countries or regions.
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- 16 - 9 LOSS PER SHARE (a) Basic The calculation of basic loss per share is based on the loss attributable to ordinary equity shareholders of the Company and the weighted average of shares in issue less restricted shares during the period, calculated as follows: Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Loss attributable to ordinary equity shareholders (4,466,859) (2,538,251) Weighted average number of ordinary shares in issue less restricted shares (thousands) 10,197,066 10,292,478 Basic loss per share (RMB per share) (0.44) (0.25) (b) Diluted The calculation of diluted loss per share is based on the loss attributable to ordinary equity shareholders of the Company and the weighted average number of ordinary shares in issue less restricted shares, calculated as follows: The amount of diluted loss per share is the same as basic loss per share as the effect of share options is anti-dilutive for the six months ended 30 June 2026. Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Loss attributable to ordinary equity shareholders (diluted) (4,466,859) (2,538,251) Weighted average number of ordinary shares in issue less restricted shares (thousands) 10,197,066 10,292,478 Diluted loss per share (RMB per share) (0.44) (0.25)
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- 17 - 10 DIVIDEND Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Interim dividend declared: nil per ordinary share (2025: nil per ordinary share) - - Dividend paid in the six months ended 30 June 2026 was nil (six months ended 30 June 2025: RMB203,645,000). 11 TRADE RECEIVABLES Sales of passenger vehicles were normally made with advances from customers. Sales of other products were made on credit terms ranging from 1 to 365 days. As at 30 June 2026 and 31 December 2025, the ageing analysis of trade receivables, based on the invoice date, is as follows: Unaudited Audited 30 June 31 December 2026 2025 RMB’000 RMB’000 Trade receivables Within 1 year 4,723,285 3,887,053 Between 1 and 2 years 308,055 778,792 Between 2 and 3 years 904,981 297,553 Between 3 and 4 years 178,236 435,874 Between 4 and 5 years 144,205 56,741 Over 5 years 234,951 225,875 6,493,713 5,681,888 Less: Provision for impairment (1,046,981) (1,085,800) Trade receivables – net 5,446,732 4,596,088
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- 18 - 12 TRADE PAYABLES AND BILLS PAYABLES As at 30 June 2026 and 31 December 2025, the ageing analysis of trade payables and bills payables, based on the invoice date, is as follows: Unaudited Audited 30 June 31 December 2026 2025 RMB’000 RMB’000 Trade payables and bills payables Within 1 year 37,568,640 27,569,452 Between 1 and 2 years 288,529 744,220 Between 2 and 3 years 487,791 250,701 Over 3 years 77,400 67,206 38,422,360 28,631,579
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- 19 - CHAIRMAN’S STATEMENT 2026 is the opening year of the “15th Five -Year Plan” and a critical year for GAC Group to deepen reforms , break through obstacles and achieve a turnaround. Looking back on the first half of the year, the competitive landscape of China ’s automobile industry has undergone a fundamental reshaping, having fully shifted from a “ranking competition” in an era of incremental growth to an “elimination race” in an era of existing inventor y. In the challenging environment where the industry as a whole is under pressure and profit margins have been squeezed to historical lows, we anchored ours elves to the goals of the “Panyu Action ”, tackling challenges and striving for breakthroughs, focusing on winning the respective battles on user demands, product value, and service experience. As a result, we have made positive progress across various area s, including product advancement, overseas expansion, cost reduction and efficiency enhancement, and the implementation of reforms. Tackling challenges under operational pressure, with initial successes in transformation beginning to appear . In the first half of 2026, the Group sold 773.1 t housand automobiles, representing a year -on-year increase of 2.35%, outpacing the industry trend and stabilising the foundation of our development. Among these, sales volume of energy -efficient vehicles and new energy vehicles (NEVs) accounted for 62.82%, with sales volume of NEVs exceeding one - third, reflecting continued optimisation of our product structure. Our self -developed brands delivered particularly outstanding performance, with sales volume of 346 thousand units, representing a year-on-year increase of 35.69%, and their share of sales rising significantly to 44.75%. Meanwhile, the GT7, the first product under the high -end intelligent electric vehicle brand “AISTALAND ” (啟境) co -developed with Huawei, h as begun mass production. Joint venture brands are accelerating in their transformation . GAC Toyota achieved sales volume of 356 thousand units in the first half, representing a year -on-year growth of 3.29%, with its bZ3X ranking first among joint venture NEV models. The shareholders of GAC Honda completed the signing of a joint venture renewal agreement, extending the cooperation term to 2038 while maintaining the existing shareholding ratio, with a full commitment to driving the transition to new energy a nd reshaping core competitiveness. Reforms were advanced in depth, with results emerging at an accelerating pace. Since launching the three -year “Panyu Action ” at the end of 2024, we have adhered to a user -centric approach and a business -success orientation, aiming to create a more process -oriented organisation that “understands users better, responds faster, and possesses stronger technology” , and have driven s ystematic transformation. We have promoted integrated operations for our self-developed brands, connecting the entire value chain of R&D, manufacturing, supply chain, sales, and service, and establishing “frontline operational units” that directly engage w ith the market, such as Hyptec AION BU (business unit) , Trumpchi BU, Powertrain BU, and Smart Cockpit product line. At the same time, we have initially established a new process system involving DSTE (develop strategy to execution) for closed -loop strategy management, IPD (integrated product development) for product creation, IPMS ( integrated product marketing and sales) for market expansion, and ITR ( issue to resolution) for closed -loop service management. The results of this transformation are gradually b ecoming apparent . The efficiency of new vehicle development requirement flow has increased by 131% , the correction rate for business decision has improved by 15% , and the click -through rate for product selling point has reached 66.7%. Additionally, the AIO N i60 which was developed under the new process system has continuously surpassed 10,000 units in monthly sales.
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- 20 - Technological self -reliance and self -improvemen t sharpened our technological strengths. We remained committed to building our foundation on technology and kept core technologies firmly in our own hands, making initial process in transitioning from single -point technological breakthroughs to a systematic technology system. In the first half of 2026, over RMB4.8 billion was invested in R&D, with the Group recording over 1,200 new patent applications. The cumulative number of patent applications exceeded 25,000 as of June 2026. The 2026 GAC Tech Day unveiled a range of cutting -edge technology achievements. Among them, the Xingyuan Power ( 星源動力) forms a complete matrix covering plug -in hybrids, super dual - engine (HEV+) and extended -range technologies, achieving industry -leading energy efficiency. The Starship Body (星艦車身)’s original “embedded frame + multi -ring cage” design offers users a reassuring d riving experience that balances comfortable commuting with hardcore off - roading. The Xinghe Smart Cockpit ( 星河智艙 ) leverages three engines of multimodal perception, multi -agent collaboration and emotional expression to deliver a differentiated digital-intelligent space experience. The X -soul (星靈架構 ) 4.0 is the first to achieve six - domain integration across driving, cockpit, powertrain, chassis, body and vehicle connectivity, with overall performance improved by 40%. It will enter mass production in models such as the Trumpchi Yue 7. Accelerating global layout to promote systematic internationalisation. In the first half of 2026, exports of self -developed brands reached 121 .5 thousand units, approaching the full -year level of 2025, representing a substantial year -on-year increase of 13 2%, far exceeding the industry growth rate. The overseas market is rapidly becoming the Group ’s “first growth curve ”. Leveraging the “One GAC 2.0 ” systematic internationalisation strategy, the Group has established 7 overseas KD factories, 9 parts distribu tion warehouses, and 746 sales and service outlets. Its business covers 110 countries and regions. The Group has completed a strategic transformation from early -stage product trade and export to deeply localised operations, gradually building global operat ional capabilities covering the entire value chain of R&D, production, supply, and sales. At present, the automo bile industry is at a critical stage characterised by “the four overlapping periods” of profound industrial transformation, rapid technological iteration, competitive landscape restructuring , and management process reform s. The transformation in the automobile industry will continue to deepen, with technological iteration and market competition becoming even more intense. Short -term market fluctuations are inevitable, while the long -term trends of electrification, intellige nce, and globalisation will remain unchanged. In the second half of 2026, we will remain steadfast in anchoring our annual business targets, adhere to the principle of pursuing progress while ensuring stability and breaking through challenges through progr ess, deepen systemic reforms, accelerate transformation and development, and make every effort to promote a steady recovery and comprehensive improvement in our business operations.
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- 21 - Focusing on value -based competition and winning the “three critical camp aigns”. We will address the shortcomings in user insights, deeply integrate user needs into all business processes, and ensure that authentic market feedback directly reach es the front line of R&D. We will adhere to value -based competitive positioning, bal ancing basic hardware performance with user perception and emotional value, and create distinctive highlights through a differentiated product value system. Anchored on improving the NPS ( Net Promoter Score ), we will strengthen our sales and service standa rd system, garner ing consumer goodwil l through an exceptional end-user experience. In the second half of 2026, we will launch several key models such as Trumpchi Yue 7, A ION Ray 7 and AISTALAND GX7, continuously enriching our product matrix to deliver a pr oduct experience that exceeds user expectations. At the same time, we will accelerate channel expansion to lower -tier markets. Building on the identification of 600 outlets in the first half of the year, we plan to establish 1,000 authorised county -level stores within the year, actively promoting NEVs in rural areas. Meanwhile, we will comprehensively upgrade our service system and fulfil hardcore service commitments such as the “Three Responsibilities ”, earning users ’ long-term trust with sincerity. Accelerating internationalisation and establishing the first growth curve. We will fully implement the “overseas traction, global adaptation ” mechanism, accelerate the project initiation and development of global models, reshape the export product system, and leverage the strengths of the domestic new energy industry to consolidate the competitiveness of overseas products. We will upgrade overseas channel models, accelerate development in untapped markets, focus on breakthroughs in strategic markets, efficiently advance overseas channel construction, and achie ve the goal of the “thousand network plan ”. We will build a comprehensive overseas operation system covering the value chain from manufacturing, energy replenishment, product delivery, to mobility services, steadily advancing toward the goal of entering 12 0 countries and regions worldwide with annual overseas sales surpassing 1 million units by 2030. Continu ing to deepening reforms and stimulat ing the vitality of the organi sation. Guided by market victory and commercial success, we will further refine the coordination mechanism between frontline and supporting units, driving the transformation of process -based organisations from reshaping the “form” to elevating the “spirit”. We will continue to deepen IPD reform, leveraging end -to-end user insights to cont inuously enhance product competitiveness and model efficiency. We will advance DSTE from process construction to business effectiveness, ensuring that strategic direction remains on course. We will accelerate reforms in sales and service systems such as IP MS and ITR, build a consumer -centric, market - oriented operating system, restructure processes for rapid problem resolution, improve clos ed- loop handling mechanisms, and continuously optimise the service experience. We will strictly implement the talent pri nciple of “mission-driven selection, organisation -oriented management, performance -anchored retention ”, rigorously enforce the mechanism of promoting and demoting executives, and vigorously promote a culture that values hard work and dedication.
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- 22 - In July 2026, GAC Group has reached a historic milestone with the 30 millionth vehicle rolling off the production line. From 0 to 30 million, this achievement is the result of the relentless efforts of generations of GAC people, and serves as a microcosm of the C hina automo bile industry’s evolution from a “major manufacturing nation ” into a “manufacturing powerhouse ”. This accomplishment stems from our unwavering commitment to quality, our pursuit of innovation, and our dedication to users. It is both a testament to 29 years of deep cultivation and a brand -new starting point for the future. Standing at this new historical starting point, we will stay true to our original aspiration, uphold long-termism, and na vigate through industry cycles with unwavering strategic resolve. Amid the waves of high -quality development and global transformation in the automo bile industry, we will forge ahead with pragmatic action and focused breakthroughs, striving to write a bran d- new chapter in GAC Group ’s journey of breaking through challenges and achieving renewal .
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- 23 - SUMMARY OF BUSINESS OF THE COMPANY (I) SUMMARY OF BUSINESS The existing principal businesses of the Group consist of R&D, manufacture of vehicles (vehicles and motorcycles), parts and components, commercial and mobility transportation services, energy ecosystem, internationalisation as well as investment and finance, which form a complete closed- loop automobile industry chain. 1. Research and development With IPD process transformation at its core, the Company has built a large -scale R&D system and formed a “market + technology” dual -driven product development model. An end-to-end development process of “insight -demand -development - delivery” has been created. 2. Manufacture of vehicles （1） Manufacture of passenger vehicles The manufacture of passenger vehicles is mainly conducted through its subsidiaries, including GAC Trumpchi and GAC AION, and joint ventures, including GAC Honda and GAC Toyota. During the Reporting Period, the Group launched new models such as AION N60, Hyptec A800, Hyptec S600, AISTALAND GT7 and GAC Toyota bZ7, etc. ➢ Products: The Group’s passenger vehicles includ e 12 series of sedans, 2 4 series of SUV and 6 series of MPV. The commercial vehicles are mainly manufactured by the subsidiary, GAC Commercial Vehicle, with the main products being new energy heavy-duty trucks, new energy light-duty trucks, fuel-powered heavy-duty trucks, pickup trucks, etc. ➢ Sales channel: The Group has been continuously deepening its digital marketing system, strengthening new media marketing, promoting innovative marketing cooperation with platforms such as JD, improvin g the functionality of each brand’s APPs, and consistently optimising the online purchasing and service experience. The Group conducts automobile sales through sales outlets and online channels. As at the end of the Reporting Period, the Company, together with its joint ventures and associated enterprises, had over 2,400 4S sales outlets across 31 provinces, autonomous regions and municipalities in the PRC. Overseas sales outlets of self - developed brands amounted to 746, with its sales and service operations covering 110 countries and regions.
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- 24 - （2） Motorcycles The Group manufactures motorcycles through its joint venture Wuyang Honda. Main products include standard motorcycles, sport bikes, scooters, electric bicycles and electric motorcycles, etc. 3. Parts and components The Group’s production of parts and components of vehicles was mainly carried out through the subsidiaries, jointly controlled and investee companies of its subsidiary GAC Component, and the Group’s subsidiaries Ruipai Power and Lisheng Technology as well as the Group’s associated company GAC Toyota Engine, etc. The parts and components of vehicles include engines, gearboxes, car seats, micro motors, shifter, electric drive, electric controller, interior and exterior decorations, etc. Th e products were mainly accessories for manufacture of vehicles of the Group. 4. Commercial and mobility transportation services The Group carried on businesses in vehicle sales, logistics, international trading, second- hand vehicles, supporting services, mobi lity transportation, etc., mainly through its subsidiaries, GAC Business (as well as its subsidiaries and investee companies) and Da Sheng Technology, and its investee company ON TIME, etc. in the upstream and downstream automobile industry chains.
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- 25 - 5. Energy ecosystem The Group constructed a vertically integrated new energy industry chain of “lithium mine + production of basic lithium battery raw material + battery production + energy storage and battery charging and swap service + battery leasing + battery recycling and gradient utilisation” through UPOWER Energy, GAC Energy, IMPOW Battery, CATL GAC, and other companies. In response to the trend of new energy development, the Group actively expands energy and ecological businesses to build an integrated energy ecosystem, achieving leapfrog development in energy ecology. 6. Internationalisation The Group established GAC International to be responsible for the overseas market operation and sales services of its self-developed brands and promoting the implementation of various internationalisation measures such as medium and long-term overseas product planning, overseas factory construction planning and overseas channel operation planning. 7. Investment and finance The Group carried on automobile credit, insurance, insurance brokerage, financial investment, finance lease, and other related businesses mainly through its subsidiaries, namely Urtrust Insurance, GAC Finance Company, GAC Capital, China Lounge Investments, and joint ventures, namely GAC-SOFINCO, GAC-SOFINCO Leasing, etc. (II) ANALYSIS ON CORE COMPETITIVENESS DURING THE REPORTING PERIOD 1. Comprehensive and efficient industry chain, and scientific and rational industry layout The Group has formed an industrial strategic layout based in South China and radiating across the country, centring upon manufacture of whole vehicles, and its business covers seven segments including R&D, manufacture of vehicles, parts and components, commercial and mobility transportation services, energy ecosystem, internationalisation, and investment and finance. The Group is one of the automobile groups in the PRC with the most integrated industry chains and the most comprehensive industry layout.
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- 26 - 2. Advanced manufacturing, craftsmanship, quality and procedural management The Group has comprehensive advantages in terms of manufacturing, craftsmanship, quality and procedural management which mainly include: (1) international leading quality advantage; (2) innovative advantage brought by “continuous improvement”; and (3) cost advantage through a commitment to excellence. By virtue of its strengths, such as flexible production of steel and aluminium bodies, digital autonomous decision - making, interactive customisation, and comprehensive energy utilisation, GAC AION’s Smart Eco -Factory has been awarded the title of the “Lighthouse Factory”, which represents the highest global benchmark for intelligent and digital manufacturing. 3. Continued enrichment of product line and optimisation of product structure The Group has a full range of products including sedans, MPVs and SUVs, maintaining the market competitiveness of its products through continuous R&D, introduction of new models and product iterations, so as to adapt to changes i n consumer demand, maintain customer loyalty and a widely recognised brand reputation. During the Reporting Period, the Group launched new models such as AION N60, Hyptec A800, Hyptec S600, AISTALAND GT7 and GAC Toyota bZ7, etc. 4. Initiated the “GAC Production Model” for the R&D and production system of self-developed brands After years of introduction, digestion, absorption and innovation, the Group has accumulated capital, technologies, talents and experience, and formulated a world-class production system. For R&D, through the integration of advantageous global resources and the establishment of a global R&D network, the Group has formed a cross-platform and modular -structured forward development system, possessing the advantage of integrated innovation. The Group also owns the State -Certified Enterprise Technology Centre, the overseas high-level talent innovation and entrepreneurship base, the national demonstration base for talent introduction, academician workstation, postdoctoral research workstation and other innovation platforms. GAC’s powertrain independent R&D team wa s awarded the title of “National Outstanding Engineering Team”. With IPD process transformation at its core, the Group has rebuilt a large -scale R&D system and formed a “market + technology” dual driven product development model, creating an end-to-end development process of “insight-demand-development-delivery”.
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- 27 - 5. Leading independent R&D capabilities in new energy and intelligent connected vehicles (ICV) In the field of new energy, the Group possesses a cutting -edge exclusive platform for NEVs. The Group deeply engaged in independent R&D as well as industrial application of power batteries, battery cells and electric drives, and self -developed power battery technologies such as sponge silicon anode battery technology and the magazine battery system safety technology, as well as electric drive technologies such as the deeply integrated “three-in-one” electric drive system, twelve -in-one integrated electric drive system with integrated charging and power transmission functions, and supercars’ dual- motor two-gear integrated electric drive. This led to the creation of the “AION” series and the “Hyptec” series, which are NEV product systems. The Group has also successfully introduced a variety of new energy products to its joint ventures. In the field of energy conservation powertrain, the Group independently developed industry-leading hybrid system technologies such as the fourth -generation engine system, the GMC 3.0 mechatronic coupling system, and high -efficiency range extenders adopting platform - based modular designs, which can be assembled into a powertrain system suitable for all types of hybrid models such as HEV, PHEV and REEV. In the field of ICV, the Group launched the industry’s first mass-produced centralised electronic and electrical architecture “X-soul” equipped with vehicle-cloud integration, and developed inclusive and intelligent driving and cockpit solutions based on the X-soul architecture, achieving scenario coverage from L2 to L4. Its smart cockpit system equipped with vehicle-cloud integration obtained the industry’s first A+ class smart cockpit certification. The Group also successfully built the first intelligent NEV model in China with 100% domestically designed chips — the Hyptec GT Climbing Edition. During the Reporting Period, at the GAC Tech Day, the Group unveiled its latest achievements, including the new Xingyuan Power, Starship Body, Xinghe Smart Cockpit, X-soul and the Chip Ecosystem.
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- 28 - DISCUSSION AND ANALYSIS ON OPERATION (I) ANALYSIS ON INDUSTRY ENVIRONMENT1 In the first half of 2026, China ’s production and sales volume of vehicles reached 14 ,993 thousand units and 15,017 thousand units respectively, representing a year-on-year decrease of 4% and 4.1% respectively. Domestic demand experienced significant pressure, with domestic sales volume of automobiles in the first half of 2026 amounting to 9,921 thousand units, representing a year-on-year decrease of 21.1%. Among them, domestic sales volume of traditional fuel-powered vehicles amounted to 4,831 thousand units, representing a year-on- year decrease of 27.8%. Export growth exceeded expectations, providing stable support, with automobile exports in the first half of 2026 reaching 5,096 thousand units, representing a year- on-year increase of 65.3%. In the first half of 2026, the production and sales volume of passenger vehicles reached 12,721 thousand units and 12,720 thousand units respectively, representing a year-on-year decrease of 5.9% and 6% respectively. Among them, the sales volume for the passenger vehicles of Chinese brands amounted to 9 ,138 thousand units, representing a year-on-year decrease of 1.4%, and the sales proportion reached 71.8%, representing a year -on-year increase of 3.3 percentage points. In the first half of 2026, China ’s commercial vehicle market continued its upward trend, with the production and sales volume maintaining growth. The production and sales volume of com mercial vehicle s reached 2 ,272 thousand units and 2 ,297 thousand units respectively, representing a year-on-year increase of 8.2% and 8.3% respectively. In the first half of 2026, the production and sales volume of NEVs reached 7 ,438 thousand units and 7 ,446 thousand units respectively, representing a year-on-year increase of 6.7% and 7.3% respectively. NEVs accounted for 49.6% of the total sales volume of new automobiles. Among them, domestic sales volume of NEVs amounted to 5 ,090 thousand units, representing a year-on-year decrease of 13.4%, accounting for 51.3% of domestic vehicle sales volume. (II) ANALYSIS ON OPERATION OF THE COMPANY In the first half of 2026, amidst overall pressure and intensifying structural divergence in the automo bile industry, the Group achieved a total production and sales volume of 796.8 thousand units and 773.1 thousand units respectively, representing a year -on-year decrease of 0.61% in production and an increase of 2.35% in sales respectively, with the sales growth rate outpacing the industry. Among them, the sales volume of NEVs was 260.2 thousand units, representing a significant year -on-year increase of 68.80%, and the proportion of NEV sales volume to the Group ’s total sales volume reached approximately 33.65%, with an increase of approximately 13 percentage points from the previous year. The sales volume of energy -efficient vehicles amounted to 225.5 thousand units, representing a year -on-year increase of 6.53%. During the Reporting Period, the proportion o f the Group ’s sales volume generated from energy -efficient vehicles and NEVs increased to 62.82%, representing a year-on-year increase of approximately 14 percentage points from the previous year. 1 In this announcement, relevant data of the industry are sourced from the China Association of Automobile Manufacturers.
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- 29 - 1. Self-developed brands achieved breakthroughs in multiple areas The Trumpchi brand enhanced the product value of its MPV series, with the launch of the brand-new M8 PHEV L and Trumpchi E8 PHEV, and unveiled the new boxy-style model “Yue 7”, entering the NEV crossover off -road market. Meanwhile, the Trumpchi S7 upgraded its annual model, continuing to driv ing the Trumpchi brand towards electrification and intelligence. In the first half of 2026, GAC Trumpchi achieved the sales volume of 164.4 thousand units, representing a year -on-year increase of 12.36%, with its MPV series ranking at the forefront in the market segment in terms of terminal sales volume 2. The AION brand is committed to delivering “People’s Choice Car” . The i60 offers a balanced and class -leading product competitiveness with rapid iterative upgrades, establishing itself as a high -volume product categor y of A-class NEV SUV with monthly sales volume consistently exceeding 1 0 thousand units. The entire N60 series is equipped with a comprehensive suite of driver assistance features, bringing the integrated driver assistance features to vehicles priced at the RMB100,000 level . The Hyptec brand focuses on “Elite Vehicles”, launching new products such as the Hyptec A800 and Hyptec S600. In terms of customer services, the brand offers firm commitments to private customers, including the “Three Responsibilities ” policy and lifetime warranty for the thr ee-electric system, effectively eliminating vehicle usage anxiety. In terms of channel development, the brand completed the full integration of existing channels of the two brands , achieving full coverage in cities above the fourth-tier level. In the first half of 2026, GAC AION achieved the sales volume of 181.6 thousand units, representing a year -on-year increase of 67.08%, with the proportion of retail sales volume to end-customers on the rise. The intelligent pure electric shooting brake GT7 , t he first model of AISTALAND Automobile, entered mass production and was launched onto the market at the end of June, marking a critical leap from brand establishment to product launch. The mid-to- large intelligent SUV GX7, the brand’s second model, is scheduled fo r launch in the third quarter of 2026. In the first half of 2026, AISTALAND Automobile completed its mixed -ownership reform financing and employee stock ownership scheme, and introduced strategic investors, raising approximately RMB1.1 billion in external financing, effectively revitalising the Group’s operational vitality. 2 In this announcement, data of the terminal sales volume are sourced from China Automotive Technology and Research Centre Limited.
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- 30 - 2. International business continued to accelerate In the first half of 2026, the Company ’s self -developed brands achieved vehicle export volume of 121.5 thousand units, representing a significant year -on-year increase of 132%. In terms of mark et channel development, sales channels have covered 110 countries and regions worldwide. The Group advanced its “Thousand Network Plan” for oversea s channels , with a cumulative total of 746 outlets. Concurrently, it implemented tiered channel management an d standardised operational empowerment mechanisms, driving steady growth in per -outlet sales performance. In terms of product planning, leveraging the main IPD process, the Group established a standardised management system for international product demand , enabling centralised coordination and rolling iteration of overseas user requirements. In the first half of the year, 8 new overseas models were initiated, accelerating the pace of overseas product portfolio iteration. The flagship model AION UT achieved leading positions in multiple regional market segments, ranking first in the pure electric hatchback market in Hong Kong China, Colombia, Uruguay, Singapore and other regions. In terms of localisation, the Group has established 7 KD production bases globa lly, including Thailand, Malaysia and Nigeria, with multiple projects progressing steadily, further improving the global production layout. All business segments of the Group have been coordinating their efforts to accelerate the overseas ecosystem layout and support the rapid growth of the Group’s automobile export business. GAC Components has been leveraging its production base in Thailand to enhance the supply chain support capabilities in the region, fully supporting the increase in production capacity of the AION Thailand plant. GAC Business has been continuously improving its one -stop service capabilities at the China (Guangzhou) Auto Export Base, completing vehicle services for over 16 thousand vehicles in the first half of 2026. IMPOW Battery has co mmenced construction of the Group ’s first overseas (Thailand) self-developed battery PACK plant, refining the localised supply chain system for power batteries in overseas markets.
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- 31 - 3. Joint venture brands accelerated transformation In the first half of 2026, GAC Toyota achieved a sales volume of 356 thousand units, representing a year -on-year increase of 3.29%. Among them, the terminal sales volume of models such as Camry , Sienna and Frontlander ranked at the forefront in the domestic market segment. The bZ3X has been the best-selling model in the domestic joint venture NEV market for ten consecutive months and became the fastest joint venture NEV model to achieve a sales volume of 100 thousand u nits. The brand-new pure electric flagship model, the bZ7, was successfully launched at the end of March. In the first half of 2026, GAC Toyota achieved a sales volume of approximately 247.1 thousand energy efficient vehicles and NEVs, representing a year-on-year increase of 22.12%, the sales proportion of which rose to 69.40%. GAC Honda accelerated enhancement of the intelligent capabilities of its models. The new Breeze is equipped with the first intelligent cockpit jointly developed by Honda Motor Co., L td. ( 本田技研工業株式會社 ) and Huawei Cloud, and GAC Honda has also clearly devised a plan to equip its core fuel -powered models with the HarmonyOS cockpit and Momenta. In July this year, the shareholders of GAC Honda officially signed a strategic renewal agreement for the joint venture cooperation project. While the shareholding ratio remains unchanged, the cooperation term is extended to 2038. The parties will fully leverage their respective technological and resource advantages and make every effort to accelerate GAC Honda in rebuilding its core competitiveness and achieving its transition to new energy. Wuyang Honda accurately seized opportunities in mainstream displacement models. Leveraging the launch of three strategic models, it achieved steady sales growth. I n the first half of the year, Wuyang Honda achieved a sales volume of 354.5 thousand units, representing a year -on-year increase of 20.7%, of which approximately 89 thousand units were exported, which remained largely the same as the previous year. GAC Com mercial Vehicle deepened its presence in the new energy heavy -duty truck commercial vehicle market and continued to improve its energy replenishment ecosystem. In the first half of the year, it achieved a sales volume of 2,815 units, representing a year -on-year increase of approximately 177%. 4. Industrial ecosystem synergy and empowerment In the fields of parts and components, GAC Component focused on electrification, intelligence and integration to build its core product matrix. Strategic projects such as cockpit integration were implemented in an orderly manner, and new products , including vehicle -mounted oxygen concentrators and intelligent headlights entered the industriali sati on stage. GAC Component also accelerated the modular integrated die -casting project to build independent and controllable capabilities in vehicle body lightweight technolog ies .
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- 32 - In the fields of commercial and mobility transportation services, GAC Busine ss deepened the development of its “Sun+ Care” service brand, providing customers with high -quality experiences through high -value services. It optimised its channel layout and added 29 first -tier authorised outlets. In the first half of 2026, it achieved a cumulative sales volume of approximately 71 thousand vehicles, representing a year -on-year increase of 0.3%. ON TIME recorded over 180 million completed orders in aggregate, representing a year -on-year growth of 150 %. Its Robotaxi business layout covered Guangzhou, Shenzhen, the Hengqin Guangdong -Macao Deep Cooperation Zone and other areas. In the fields of energy ecosystem, IMPOW Battery and CATL GAC further developed a cumulative total of 13GWh power batteries in the first half of 2026, continuously providing the original equipment manufacturers (OEMs) with a stable battery supply. UPOWER Energy actively deployed high - quality user -side energy storage projects and implemented 34MWh solar - plus -storage projects in the first half of the year. GAC Energy c ontinued to rank among the top in the automobile industry in terms of the scale of charging terminals. As of the end of June 2026, GAC Energy had cumulatively built and operated more than 2,100 charging stations and over 27,000 charging terminals. In the f ields of investment and finance, GAC -SOFINCO launched multiple exclusive financial products in coordination with OEMs’ new model launches, with over 100 thousand retail contracts, representing a year -on-year increase of 20%. GAC Finance, through inventory financing products in conjunction with multiple financial service policies, cumulatively supported the sales of more than 180 thousand vehicles. In its retail sa le-and -leaseback business, GAC -SOFINCO Leasing launched differentiated interest -free and brand - specific promotional policies to consolidate its business foundation, while accelerating the transformation of its direct leasing and operating leasing businesse s. Urtrust Insurance customised exclusive insurance products and supporting service plans in line with the Group’s new model launch schedule, enhanced the depth of online collaboration, optimised online underwriting and service chains, and empowered the de velopment of the automobile industry chain. GAC Capital closely aligned with the main automobile manufacturing business and deeply cultivated advantageous tracks such as new energy and intelligent manufacturing. In the first half of 2026, it completed inve stments in 32 projects in emerging fields including artificial intelligence, advanced chips and new materials.
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- 33 - (Ⅲ) DISCUSSION AND ANALYSIS BY THE BOARD ON OPERATION OF THE COMPANY DURING THE REPORTING PERIOD During the Reporting Period, the revenue of the Group amounted to approximately RMB46.5 billion on a consolidated basis, representing a year -on-year increase of approximately 9.13%. The net loss attributable to shareholders of the parent company amounted to approximately RMB4.467 billion, representing a year -on-year increase in loss of approximately 75.98%. The basic loss per Share amounted to approximately RMB0.44, representing a year-on-year increase in loss of approximately 76%. The major factors accounting for the changes in results during the Reporting Period included: 1. During the Reporting Period, as a result of intensifying competition in the domestic market, the Company continued to increase sales investment in its self -developed brands , together with changes in product sales mix and rising u pstream raw material costs, the profit of the self - developed brands declined compared with the same period of the prior year; 2. During the Reporting Period, the joint venture brands were under operating pressure. Affected by factors including a decline in terminal sales volume, continuous increase in sales investment, and rising raw material costs, the Company’s investment income from joint ventures decreased compared with the same period of the prior year; 3. During the Reporting Period, affected by exchange rate fluctuations, foreign exchange losses were incurred, further compressing profit margins.
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- 34 - (IV) ANALYSIS OF PRINCIPAL BUSINESS 1. Analysis of changes of items in the consolidated statement of comprehensive income and the cash flow statement Unit: 100 million Currency: RMB Current period Corresponding period last year Change Item (%) Revenue 465.00 426.11 9.13 Costs of sales 484.75 444.60 9.03 Selling and distribution costs 30.56 26.02 17.45 Administrative expenses 28.67 25.58 12.08 Finance costs 4.79 3.40 40.88 Interest income 1.64 2.33 -29.61 Share of net profit of joint ventures and associates 13.26 19.23 -31.05 Net cash flow generated from operating activities -77.15 -114.61 32.68 Net cash flow generated from investing activities 28.70 -55.90 151.34 Net cash flow generated from financing activities 145.06 28.20 414.40 2. Revenue During the Reporting Period, revenue of the Group amounted to approximately RMB46.5 billion, representing a year-on-year increase of 9.13%. This was mainly due to a combination of factors including an increase in sales of self-developed brand vehicles. 3. Cost of sales and gross profit During the Reporting Period, the Group recorded costs of sales of approximately RMB48.475 billion, representing a year -on-year increase of 9.03%. Total gross loss amounted to approximately RMB1.975 billion, representing a year -on-year increase of approxima tely RMB126 million from RMB1.849 billion. Gross loss margin was 4.25%, representing a year - on-year decrease of 0.09 percentage points from 4.34%, which was mainly due to the combined factors including a decrease in the gross loss margin of self -developed brand vehicle manufacturers.
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- 35 - 4. Expenses (1) The year-on-year increase of approximately RMB454 million in selling and distribution costs was mainly attributable to the combined factors including the mass production and market launch of the first model of AISTALAND Automobile during the Reporting Period and the corresponding increase in related sales expenses; (2) The year-on-year increase of approximately RMB309 million in administrative expenses was mainly attributable to the combined factors including the year-on year increase in the capitalisation of R&D expenditures during the Reporting Period etc.; (3) The year-on-year increase of approximately RMB139 million in finance costs was mainly attributable to the c ombined factors including the increase in interest expenses arising from the issuance of green science and technology innovation bonds and new borrowings during the Reporting Period; (4) The year -on-year decrease of approximately RMB69 million in interest inc ome was mainly attributable to the combined factors including the year -on-year decrease in operational interest income during the Reporting Period. 5. Cash flows (1) During the Reporting Period, net cash outflow generated from operating activities amounted to RMB7.715 billion, representing a decrease in net outflow of RMB3.746 billion as compared with the net cash outflow of RMB11.461 billion in the corresponding period last year, which was mainly attributable to the combined factors including the increase in net cash inflow resulting from rising sales volume during the Reporting Period; (2) During the Reporting Period, net cash inflow generated from investing activities amounted to RMB2.870 billion, representing an increase in net inflow of RMB8.460 billion as compared with the net cash outflow of RMB5.590 billion in the corresponding period last year, which was mainly attributable to the combined factors including a decrease in investments in interbank certificates of deposit of financial institutions during the Reporting Period and the recovery of shareholder deposits from GAC-SOFINCO;
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- 36 - (3) During the Reporting Period, net cash inflow generated from financi ng activities amounted to RMB14.506 billion, representing an increase in net inflow of approximately RMB11.686 billion as compared with the net cash inflow of RMB2.820 billion in the corresponding period last year, which was mainly attributable to the comb ined factors including the issuance of green science and technology innovation bonds during the Reporting Period; (4) As of 30 June 2026, cash and cash equivalents of the Group amounted to approximately RMB33.386 billion, representing an increase of RMB11.198 billion as compared with RMB22.188 billion as at 30 June 2025. 6. Share of net profit of joint ventures and associated enterprises During the Reporting Period, the Group’s share of net profit of joint ventures and associated enterprises amounted to approximately RMB1.326 billion, representing a year -on-year decrease of approximately RMB597 million, which was mainly attributable to the combined factors including the operating pressure on the joint venture brands, the decline in terminal sales volume, the continuous increase in sales investment and the rise in raw material costs. 7. Others Income tax expenses amounted to approximately RMB348 million, representing a year-on year increase of approximately RMB793 million, which was mainly attributable to changes in profit of certain enterprises during the Reporting Period. To sum up, the Group’s net loss attributable to shareholders of the parent company for the Reporting Period amounted to approximately RMB4.467billion, representing a year -on-year increase in loss of approximately 75.98%, basic loss per Share amounted to approximately RMB0.44, representing a year-on-year increase in loss of approximately 76%.
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- 37 - (Ⅴ) ANALYSIS BY INDUSTRY, PRODUCT OR REGIONAL OPERATION Principal business by industry Unit: 100 million Currency: RMB By industry Revenue of sales during the Reporting Period Cost of sales during the Reporting Period Gross profit/(loss ) margin during the Reporting Period (%) Revenue of sales for the correspon ding period last year Cost of sales for the correspo nding period last year Gross profit/(loss) margin for the correspondi ng period last year (%) Automobile manufacturing industry 318.31 346.30 (8.79) 246.50 269.10 (9.17) Parts and components manufacturing industry 24.54 24.18 1.47 21.05 20.31 3.52 Commercial services 89.40 86.33 3.43 131.32 128.80 1.92 Financial services and others 32.75 27.94 14.69 27.24 26.39 3.12 Total 465.00 484.75 (4.25) 426.11 444.60 (4.34) Principal business by product Unit: 100 million Currency: RMB By product Revenue of sales during the Reporting Period Cost of sales during the Reporting Period Gross profit/(loss ) margin during the Reporting Period (%) Revenue of sales for the correspon ding period last year Cost of sales for the correspo nding period last year Gross profit/(loss) margin for the correspondi ng period last year (%) Passenger vehicles 311.74 339.66 (8.96) 243.90 265.89 (9.02) Vehicles related trades 120.51 117.15 2.79 154.97 152.32 1.71 Financial services and others 32.75 27.94 14.69 27.24 26.39 3.12 Total 465.00 484.75 (4.25) 426.11 444.60 (4.34)
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- 38 - Principal business by region Unit: 100 million Currency: RMB By region Revenue of sales during the Reporting Period Changes in revenue compared with last year (%) Mainland China 324.87 -9.54 Overseas 140.13 109.27 Total 465.00 9.13 Principal business by sales model Unit: 100 million Currency: RMB By sales model Revenue of sales during the Reporting Period Cost of sales during the Reporting Period Gross profit/(loss ) margin during the Reporting Period (%) Revenue of sales for the correspon ding period last year Cost of sales for the correspo nding period last year Gross profit/(loss) margin for the correspondi ng period last year (%) Distributor sales model 318.31 346..30 (8.79) 246.50 269.10 (9.17) Others 146.69 138.45 5.62 179.61 175.50 2.29 Total 465.00 484.75 (4.25) 426.11 444.60 (4.34)
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- 39 - (Ⅵ) ANALYSIS OF ASSETS AND LIABILITIES Unit: 100 million Currency: RMB Balance Balance Balance at the Balance at the end at the end of the at the end of current end of the previous of current period over previous period over Item period total assets (%) period total assets (%) Change (%) Investments in joint ventures and associates 318.01 13.73 355.56 16.54 -10.56 Prepayments and other long-term receivables 54.85 2.37 65.39 3.04 -16.12 Inventories 239.20 10.33 164.46 7.65 45.45 Trade receivables and other current assets 305.00 13.17 263.20 12.24 15.88 Cash and cash equivalent 333.86 14.41 238.43 11.09 40.02 Borrowings – non-current 243.74 10.52 96.97 4.51 151.36 Trade and other payables – current 639.34 27.60 546.64 25.43 16.96 2. Analysis on the changes (1) Investments in joint ventures and associates decreased by 10.56% as compared with the balance at the end of the previous period, which was mainly attributable to the combined effect of the addition of new joint ventures and associates during the Reporting Period, capital contributions to joint ventures and associates, recognition of investment income from joint ventures and associates, profit distr ibutions by joint ventures and associates, and the disposal of the equity interest in Kunlun Blue Diamond; (2) Prepayments and other long-term receivables decreased by 16.12% as compared with the balance at the end of the previous period, which was mainly due to the decrease in long - term loans granted by GAC Finance Company; (3) Inventories increased by 45.45% as compared with the balance at the end of the previous period, which was mainly attributable to the increase in inventory in line with the increase in automobile production and sales during the Reporting Period;
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- 40 - (4) Trade receivables and other current assets increased by 15.88% as compared with the balance at the end of the previous period, which was mainly attributable to the combined effect of the increase in prepayments to suppliers during the Reporting Period driven by growth in production and sales, the remaining balance from the disposal of the equity interest in Kunlun Blue Diamond, and the higher sales volume in overseas operations which resulted in a corresponding increase in prepaid taxes; (5) Cash and cash equivalents increased by 40.02% as compared with the balance at the end of the previous period, which was mainly attributable to the issuance of green science and technology innovation bonds during the Reporting Period; (6) Borrowings – non-current increased by 151.36% as compared with the balance at the end of the previous period, which was mainly attributable to the issuance of green science and technology innovation bonds during the Reporting Period; (7) Trade and other payables – current increased by 16.96% as compared with the balance at the end of the previous period, which was mainly attributable to the combined effect of the increase in amounts payable to suppliers in line with the growth in production and sales during the Reporting P eriod and the increase in payments to suppliers made through bill financing. (Ⅶ) ANALYSIS OF FINANCIAL POSITION 1. Financial indicators As at 30 June 2026, the Group’s current ratio was approximately 1.27 times, representing an increase from approximately 1.13 times as at 31 December 2025. The Group’s quick ratio was approximately 1.01 times, representing an increase from approximately 0.94 times as at 31 December 2025. Both ratios were within reasonable range. 2. Financial resources and capital structure As at 30 June 2026, the Group’s current assets amounted to approximately RMB118.919 billion, current liabilities amounted to approximately RMB93.943 billion, and the current ratio was approximately 1.27 times.
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- 41 - As at 30 June 2026, the Group’s total borrowings amounted to approximately RMB49.257 billion, mainly consisting of borrowings from bank and financial institutions etc. with closing balance of approximately RMB32.790 billion, as well as corporate bonds and medium-term notes issued by the Group with a nominal value of RMB16 billion, etc. The above borrowings are payable upon maturity. The Group generally funds its business and operational capital needs with its own operating cash flow. As at 30 June 2026, the Group’s gearing ratio was approximately 32.07% (calculation of gearing ratio: (borrowings in non-current liabilities + borrowings in current liabilities)/ (total equity + borrowings in non-current liabilities + borrowings in current liabilities)). 3. Foreign exchange risk The Group’s principal operations are situated in China, and its main business activities are settled in Renminbi. The Group’s recognised foreign currency assets and liabilities, as well as future foreign currency transactions, are subject to foreign exchange risk. The Group continuously monitors the scale of its foreign currency transactions and foreign currency assets and liabilities in order to minimise the exposure to foreign exchange risk to the largest extent . As at 30 June 2026, the Group had no significant foreign exchange risk. 4. Contingent liabilities As of 30 June 2026, financial guarantee given by the Company to controlled and wholly-owned subsidiaries of the Group amounted to RMB0 (31 December 2025: RMB0). As of 30 June 2026, independent third-party financial guarantee given by the Company amounted to RMB0 (31 December 2025: RMB0). As of 30 June 2026, financial guarantee given by the Group to related parties outside the consolidation scope amounted to RMB0 (31 December 2025: RMB0). (Ⅷ) ANALYSIS OF AUTOMOBILE MANUFACTURING INDUSTRY OPERATION Changes Changes Changes Production compared Sales volume compared compared volume during with the during the with the with the the Reporting corresponding Reporting corresponding Revenue corresponding Period period last Period period last (RMB100 period last Company name (units) year (units) year million) year GAC Honda 82,884 -49.85% 68,318 -55.82% 93.51 -58.67% GAC Toyota 363,244 4.11% 356,000 3.29% 534.66 2.21% GAC Trumpchi 153,785 0.43% 164,373 12.36% 202.30 12.66% GAC AION 193,621 45.58% 181,579 67.08% 188.38 82.82%
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- 42 - OTHER DISCLOSURES Potential risks 1. Overall pressure on the domestic automobile market The marginal stimulative effect of the domestic automobile trade-in policy continued to diminish. Coupled with weakening first -time purchase demand, competition for the trade-in of existing vehicles further intensified. In the first half of 2026, domestic automobile sales fell sharply by 21.1% year -on-year, in particular, domestic sales of traditional fuel-powered vehicles fell by 27.8% year-on-year, reflecting evident pressure on domestic demand. According to statistics from the China Association of Automobile Manufacturers, the average profit margin of the domestic automobile manufacturing segment dropped to 1.5% in the first half of the year, the lowest level in nearly a decade, and the profit margin of enterprises has continuously been compressed. 2. Increased uncertainty in the external environment Although automobile exports maintained a rapid growth, international geopolitical risks remained elevated, trade protectionism was on the rise, and many countries raised tariffs and compliance thresholds. Automobile enterprises continued to increase their investment in overseas localised production and after -sales suppor t. Combined with uncertainties such as exchange rate fluctuations, the profit margin of automobile exports was further squeezed. 3. Fluctuations in prices of raw materials and key components Prices of upstream raw materials and key components remained at elev ated levels and continued to rise. Among them, prices of key categories such as lithium carbonate, copper and aluminium continued to fluctuate, and prices of key components such as memory chips rose substantially. The cost pressure s faced by the automobile industry continued to mount. In response to the continued rise in prices of raw materials and key components, the Company has made efforts to reduce procurement costs through measures such as integrating the procurement system of its self -developed brands , optimising the supplier structure and expanding the scale of centralised procurement. Nevertheless, it remains difficult to fully offset such cost pressures.
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- 43 - 4. Adjustments in industry policies First, since January 2026, the vehicle purchase tax on new energy vehicles has been levied at half the standard rate, while the technical conditions that models must meet to qualify for the reduction, exemption or discounts have been raised. The core rationale of current NEV policies has shifted from universal support to market-based competition. Second, vehicle and vessel tax will be levied on PHEV models in 2027, and demand for PHEV models faces the risk of further contraction. Third, consumption tax will be levied on lithium -ion batteries after September 2026. The battery consumption tax paid by battery manufacturers may be passed on to vehicle prices, which will directly increase automobile manufacturing costs and compress profit margins. Fourth, Hainan has taken the lead in proposing to phase out the sale of fuel -powered vehicles by 2030, further accelerating the transition to new energy. 5. Operating performance of the Company under pressure In the first half of 2026, the Group achieved a 2.35% increase in automobile sales, with a growth rate higher than that of the industry. However, affected by factors including the continued increase in sales investment, rising raw material costs and exchange rate fluctuations, the Group’s operating performance remained under press ure. There remains room for further improvement and enhancement in product competitiveness, cost control capability, marketing and service efficiency, and production -sales coordination.
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- 44 - SIGNIFICANT EVENTS 1. Proposed Profit Distribution Plan or Conversion of Capital Reserves Formulated half-year profit distribution plan and conversion of capital reserves Whether making profit distribution or converting capital reserves into Share capital No Number of bonus Share for every 10 Shares 0 Amount of cash dividend for every 10 Shares (RMB) (tax inclusive) 0 Number of Shares converted for every 10 Shares 0 Relevant Explanation on Profit Distribution Plan or Plan to Convert Capital Reserves into Shares During the Reporting Period, the Company achieved a net loss attributable to Shareholders of the listed company of RMB 4.467 billion, and no profit distribution was implemented during the Reporting Period. 2. Matters Relating to Insolvency or Restructuring The joint venture company, GAC Fiat Chrysler Automobiles Co., Ltd. (廣汽菲亞特克萊 斯勒汽車有限公司 ), filed for winding -up with the court in accordance with relevant requirements of existing laws and regulations in 2022 on account of its insolvency. On 29 November 2022, th e Intermediate People’s Court of Changsha, Hunan Province issued the Civil Judgment [(2022) Xiang 01 Po Shen No. 139]((2022) 湘01破申139號) to formally accept its winding -up application. On 6 March 2023, the Notice (2022) Xiang 01 Po No.214 -1 ((2022) 湘01破 214-1號) was issued and Yingke (Changsha) Law Firm (北京盈科（長沙）事務所 ) was designated to act as the administrator. During the Reporting Period, the administrator issued the Implementation Plan for the Distribution of Bankruptcy Assets (First Batch) in June 2026. Acco rding to the aforesaid distribution plan, the Company’s claims of approximately RMB170 million that are entitled to priority repayment have been fully repaid in July 2026 . The remaining ordinary claims had been fully provided for in prior accounting years. The actual recovery ratio and amount depend on the administrator’s disposal and distribution of the wound -up assets and are subject to uncertainties.
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- 45 - GAMC (Hangzhou) Co., Ltd. ( 廣 汽 乘 用 車 （ 杭 州 ） 有 限 公 司), a controlled sub - subsidiary of the Company (the Company holds 51% equity interest therein through its wholly -owned subsidiary GAC Trumpchi), was petitioned by creditors for liquidation in accordance with applicable laws and regulations due to its inabili ty to pay its debts as they became due. The Hangzhou Qiantang District People’s Court ruled to accept the application in accordance with the relevant laws, and appointed Zhejiang Haihao Law Firm (浙江海浩律師事務所 ) as the administrator on 28 July 2026 [(2026) Zhe 0114 Po No. 37] ((2026) 浙0114 破37號). As of 30 June 2026 , the Company and enterprises within its consolidation scope hold claims of approximately RMB240 million against the respondent due to daily business transactions. The Company will subsequently file its claims on an active basis in accordance with the relevant regulations to safeguard the Company’s legitimate rights and interests. Affected by factors such as exceptionally intense competition in the auto mobile industry, the respondent has been in a state of continuous losses in recent years , the liquidation application against the respondent will not have a material impact on the Company’s operations or other matters. 3. Material Litigation and Arbitration The Company was not involved in any material litigation or arbitration during the Reporting Period. 4. Events Occurring after the Reporting Period Save as disclosed in this announcement, there were no important events affecting the Company and its subsidiaries which had occurred since the end of the six months ended 30 June 2026. CHANGES IN SHARE CAPITAL During the Reporting Period, there was no change in the Company’s Share capital. CORPORATE GOVERNANCE Pursuant to code provision B.3.5 of the Corporate Governance Code (the “CG Code”) as set out in Appendix C1 to the Listing Rules, the issuers should appoint at least one director of a different gender to the nomination committee. The 2025 second extraordinary general meeting of the Company held on 28 Marc h 2025 approved the change of session of the Board and change of the relevant directors. However, before and after the change of session of the Board up to the 2025 annual general meeting (the “2025 AGM”) held on 12 June 2026, the nomination committee of the Board is composed of directors of a single gender. At the 25th meeting of the seventh session of the Board held on the same day as the 2025 AGM of the Company, the Resolution on the Election of Members of the Special Committees of the Board was considered and approved, amongst others, Ms. Hong Suli was appointed as a member of the nomination committee. Accordingly, since 12 June 2026 and until the date of this announcement, the nomination committee comprises directors of different genders, in compliance with the relevant provision of the CG Code.
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- 46 - Code provision C.1.5 of the CG Code stipulates that independent non-executive directors and other non-executive directors should attend general meetings to gain and develop a balanced understanding of the views of shareholders of the Company. Certain non-executive directors a nd independent non -executive directors did not attend all general meetings of the Company held during the Reporting Period due to other business arrangements (for details, please refer to the poll results announcement of the Company disclosed on 23 January 2026, regarding the first extraordinary general meeting of 2026 held on the same date, as well as the poll results announcement disclosed on 12 June 2026, regarding the 2025 AGM) . However, there were sufficient directors (including executive directors, in dependent non-executive directors and non - executive directors) present at the general meetings for the Board to gain a comprehensive understanding of the views of the Shareholders. In addition, code provision F.1.3 of the CG Code provides that the chairman of the Board should invite the chairmen of each board committee to attend the annual general meeting. Mr. Xiao Shengfang, the former chairman of the Company’s remuneration and assessment committee and nomination committee, was unable to attend the 2025 AG M due to other business arrangements . To ensure that Shareholders’ questions were adequately addressed, other members of the Board and senior management attended the meeting and responded on behalf of Mr. Xiao. Save as disclosed above, the Company has complied with the applicable code provisions in Part 2 of the CG Code contained in Appendix C1 to the Listing Rules during the Reporting Period. PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY The Company has not redeemed any of its listed securities during the Reporting Period . Neither the Company nor any of its subsidiaries has purchased or sold any of the listed securities of the Company during the Reporting Period . As of 30 June 2026, the Co mpany held 14,799,854 A Shares as treasury Shares. According to the Share repurchase plan through centralised bidding disclosed by the Company on 28 March 2024, the A Shares repurchased by the Company were intended for the implementation of Share option incentive scheme or employee stock ownership scheme. If the Company fails to fully utilise the repurchased shares within 36 months following the completion of the share repurchase, the unused repurchased shares will be cancelled. OTHER MATTERS Save as disclosed in this announcement, during the six months ended 30 June 2026, there were no material changes in the Company’s current information in relation to the matters set out in paragraph 46(3) of Appendix D2 to the Listing Rules, as compared wit h the relevant disclosures in the Company’s 2025 Annual Report.
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- 47 - DEFINITIONS In this announcement, unless the context otherwise requires, the following terms used shall have the following meanings set out below: “AISTALAND Automobile” AISTALAND Intelligent Automobile Technology (Guangzhou) Co., Ltd. (啟境智能汽車科技（廣州）有限公 司) (formerly known as Huawang Automobile Technology (Guangzhou) Co., Ltd. (華望汽車技術（廣州）有限公司), a company incorporated in March 2025 under PRC law, in which the Company and GAC AION collectively hold 69.65% equity interest “associate(s)”, “associated company(ies)” or “associated enterprise(s)” all entities over which the Company has significant influence but not control, generally accompany ing a shareholding of between 20% and 50% of the voting rights of such entities “A Share(s)” domestic listed shares with par value of RMB1.00 each in the ordinary share capital of the Company which are listed on the Shanghai Stock Exchange (Stock Code: 601238) “Board” the board of directors of the Company “CATL GAC” CATL GAC Energy Battery System Co., Ltd. ( 時代廣 汽動力電池有限公司), an associated company jointly funded and established by the Company, GAC AION and Contemporary Amperex Technology Co., Ltd. in December 2018 under PRC law, in which the Company and GAC AION hold 49% equity interest in total “China Lounge Investments” China Lounge Investments Limited ( 中隆投資有限公 司), a wholly owned subsidiary of the Company incorporated in Hong Kong “Company” or “GAC” Guangzhou Automobile Group Co., Ltd. ( 廣州汽車集 團股份有限公司) “Da Sheng Technology” Da Sheng Technology Co., Ltd. ( 大聖科技股份有限公 司), a subsidiary of the Company established in June 2016 under PRC law, in which the Company and Urtrust Insurance hold 85% and 15% equity interests, respectively
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- 48 - “GAC AION” GAC AION New Energy Automobile Co., Ltd. ( 廣汽 埃安新能源汽車股份有限公司 ) (formerly known as Guangzhou Automobile New Energy Automobile Co., Ltd. ( 廣汽新能源汽車有限公司 )), a subsidiary of the Company incorporated in July 2017 under PRC law “GAC Business” GAC Business Co., Ltd. ( 廣汽商貿有限公司 ) (formerly known as Guangzhou Automobile Group Business Co., Ltd. ( 廣州汽車集團商貿有限公司)), a wholly -owned subsidiary of the Company incorporated in March 2000 under PRC law “GAC Capital” GAC Capital Co., Ltd. ( 廣汽資本有限公司), a wholly - owned subsidiary of the Company established in April 2013 under PRC law “GAC Commercial Vehicle” GAC New Energy Commercial Vehicle Co., Ltd. ( 廣 汽領程新能源商用車有限公司 ) (formerly known as GAC Hino Motors Co., Ltd. ( 廣汽日野汽車有限公 司)), a subsidiary in which the Company holds 89.72% equity interest “GAC Component” GAC Component Co., Ltd. ( 廣汽零部件有限公司) (formerly known as Guangzhou Automobile Group Component Co., Ltd. ( 廣州汽車集團零部件有限公 司)), a wholly -owned subsidiary incorpora ted in August 2000 under PRC law by the Company and its subsidiaries “GAC Energy” GAC Energy Technology Co., Ltd. ( 廣汽能源科技有限 公司), a subsidiary established in July 2022 under PRC law by the Company, in which UPOWER Energy and GAC AION hold 55% and 45% equity interest respectively “GAC Finance Company” Guangzhou Automobile Group Finance Co., Ltd. ( 廣 州汽車集團財務有限公司), a wholly -owned subsidiary incorporated in January 2017 under PRC law by the Company “GAC Honda” GAC Honda Automobile Co., Ltd. ( 廣汽本田汽車有 限公司) (formerl y known as Guangzhou Honda Automobile Co., Ltd. ( 廣州本田汽車有限公司 )), a jointly controlled entity incorporated in May 1998 under PRC law by the Company, Honda Motor Co., Ltd. and Honda Motor (China) Investment Co., Ltd.
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- 49 - “GAC International” GAC International Automobile Sales & Service Co., Ltd. ( 廣汽國際汽車銷售服務有限公司), a subsidiary established in May 2022 by the Company under PRC law “GAC-SOFINCO” GAC-SOFINCO Automobile Finance Co., Ltd. ( 廣汽 匯理汽車金融有限公司), a jointly controlled entity incorporated in May 2010 under PRC law by the Company and Cré dit Agricole Personal Finance & Mobility “GAC-SOFINCO Leasing” GAC-SOFINCO Financial Leasing Co., Ltd. ( 廣州廣 汽匯理融資租賃有限公司 ) (formerly known as Guangzhou GAC Leasing Co., Ltd. ( 廣州廣汽融資租 賃有限公司 )), a limited liability company incorporated in February 2004 under PRC law, being a jointly controlled entity of the Company and Cré dit Agricole Personal Finance & Mobility “GAC Toyota” GAC Toyota Motor Co., Ltd. ( 廣汽豐田汽車有限公司 ) (formerly known as Guangzhou Toyota Motor Co., Ltd. (廣州 豐田汽車有限公司)), a jointly controlled entity incorporated in September 2004 under PRC law by the Company, Toyota Motor Company and Toyota Motor (China) Investment Co., Ltd. “GAC Toyota Engine” GAC Toyota Engine Co., Ltd. ( 廣汽豐田發動機有限公 司), an associated company incorporated in February 2004 under PRC law by the Company and Toyota Motor Company, in which the Company holds 30% equity interest “GAC Trumpchi” GAC Motor Co., Ltd. ( 廣汽傳祺汽車有限公司 ) (formerly known as GAC Motor Co., Ltd. ( 廣汽乘用車有限公司)), a wholly-owned subsidiary of the Company incorporated in July 2008 under PRC law “Group” or “GAC Group” the Company and its subsidiaries “HEV” hybrid electric vehicles “Huawei” Huawei Technologies Co., Ltd.
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- 50 - “H Share(s)” overseas listed foreign shares with nominal value of RMB1.00 each in the ordinary share capital of the Company which are listed on the Stock Exchange (Stock Code: 2238) “IMPOW Battery” IMPOW Battery Technology Co., Ltd. (因湃電池科技有限公 司), a subsidiary of the Company established in October 2022 under PRC law “JD” JD.com, Inc. “joint venture(s)” or “jointly controlled entity(ies)” joint venture companies under direct or indirect joint control, and no participating party has unilateral control power over the economic activities of such jointly controlled entity as a result of such direct or indirect joint control “Kunlun Blue Diamond” Xinjiang Kunlun Blue Diamond Mining Development Co., Ltd. (新疆崑崙藍鑽礦業開發有限責任公司), a limited liability company incorporated in the PRC in September 2018, in which the Company indirectly holds an 8% equi ty interest through UPOWER Energy “Lisheng Technology” Lisheng Automotive Technology (Guangzhou) Co., Ltd. (立昇 汽車科技(廣州)有限公司), established in June 2023 under PRC law by the Company, GAC Component and Luxshare Precision Industry Company Limited (立訊精密工業股份有 限公司), and in which the Company and GAC Component collectively hold 45% equity interest “Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange as amended from time to time “MPV” multi-purpose passenger vehicle “ON TIME” a mobile mobility platform established in April 2019 and launched by the Company through Chenqi Technology Limited (including its subsidiaries) established by China Lounge Investments and Tencent, and its controlling company, the shares of which are listed on the Stock Exchange (Stock Code: 9680), and in which the Group indirectly holds 12.84% equity interest “PHEV” plug-in hybrid electric vehicles “PRC” or “China” the People’s Republic of China “REEV” extended-range electric vehicles
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- 51 - “Reporting Period” six months ended 30 June 2026 “RMB” Renminbi, the lawful currency of the PRC “Ruipai Power” Ruipai Power Technology Co., Ltd. (銳湃動力科技有限公 司), a subsidiary established in October 2022 under PRC law “Share(s)” A Share(s) or H Share(s) “Shareholder(s)” holder(s) of the Company’s share(s) “Stock Exchange” The Stock Exchange of Hong Kong Limited “subsidiary(ies)” or “sub- subsidiary” has the meaning ascribed to “subsidiary” under the Listing Rules “SUV” sports utility vehicle “UPOWER Energy” UPOWER Energy Technology (Guangzhou) Co., Ltd. (優湃能源科技(廣州)有限公司) (formerly known as Guangzhou GAC Business Renewable Resources Co., Ltd. (廣州廣汽商貿再生資源有限公司 )), a wholly- owned subsidiary of the Company established in September 2010 under PRC law “Urtrust Insurance” Urtrust Insurance Co., Ltd. (眾誠汽車保險股份有限公 司), a subsidiary incorporated in June 2011 under PRC law by the Company, in which the Company directly and indirectly holds a total of 53.55% equity interest “Wuyang Honda” Wuyang-Honda Motors (Guangzhou) Co., Ltd. (五羊－ 本田摩托(廣州)有限公司), a jointly controlled entity incorporated in July 1992 under PRC law by the Company, Honda Motor Co., Ltd. and Honda Motor (China) Investment Co., Ltd. By order of the Board Guangzhou Automobile Group Co., Ltd. FENG Xingya Chairman Guangzhou, the PRC, 28 August 2026
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- 52 - As at the date of this announcement, the executive directors of the Company are FENG Xingya and XIA Xianqing, the non -executive directors of the Company are CAO Xiaojun , DENG Lei, ZHOU Kaiquan, WANG Yiwei and HONG Suli, and the independent non - executive directors of the Company are ZHU Zhengfu, YANG Diange, ZHANG Yanlong and LI Wenjing.