On November 11, GAC Group made an official announcement, revealing that it had inked an equity restructuring pact with Honda Motor Co., Ltd., Honda China, and GAC Honda Automobile Co., Ltd. This pact encompasses two key components: the equity transfer of Dongfeng Honda Engine Co., Ltd. and a capital boost for GAC Honda. Together, these elements constitute the equity restructuring blueprint for Dongfeng Honda Engine. In line with their existing equity stakes, the three parties will contribute funds proportionally. Specifically, GAC Group will inject 1.1724854 billion yuan in cash, making up 50% of the total capital increase. Honda, on the other hand, will contribute its 40% stake in Dongfeng Honda Engine as a valued in-kind contribution, representing 40% of the total. Meanwhile, Honda China will offer its 10% stake in Dongfeng Honda Engine as a priced in-kind contribution, accounting for the remaining 10%.