Shanghai (ZXZC)- GAC AION, the wholly-owned NEV subsidiary of GAC Group, will take over the staff members of GAC R&D Center’s all-electric R&D business, and implement an internal asset restructuring by means of cash capital increase, asset injection, and conversion of capital public reserve, GAC Group announced on Nov. 29.

As for specific solutions, GAC Group will contribute 7.407 billion yuan ($1.162 billion) of cash, while GAC Motor offers 3.557 billion yuan ($557.97 million) worth of physical assets like manufacturing facilities to GAC AION. Meanwhile, GAC AION will purchase the intangible and fixed assets related to the full-electric new energy businesses from such entities as GAC R&D Center and GAC Motor by paying 4.975 billion yuan ($780.404 million) and assuming the sellers' liabilities. Besides, GAC AION will convert part of its capital public reverses into registered capital.

Upon completion of the asset reorganization, GAC AION will see its registered capital greatly grow to 6 billion yuan ($941.191 million), and obtain more comprehensive and efficient R&D capability and business & asset structure, so as to form independent market-oriented operation ability and enhance the company's profitability.

In the future, GAC AION will further promote the employee stock ownership plan and the introduction of strategic investors. It will also actively seek an appropriate chance of being publicly listed, and build its standalone capital market platform and market-driven incentive mechanism.