According to Zhitong Finance App, BAIC Motor (01958) announced that on October 21, 2026 (after the trading period), Beijing Hyundai Motor Finance Co., Ltd. (Beijing Automobile Investment), BAIC Motor Investment Co., Ltd. (Beijing Hyundai), Hyundai Finance Co., Ltd. (Hyundai Finance) and Hyundai Auto Co., Ltd. (Hyundai Motor) signed a capital reduction agreement.
Based on this, the contracting party agreed: (i) Beijing Automobile Investment to withdraw all of its shares in Beixian Auto Gold by reducing its registered capital in Beixian Auto Gold (the amount is equivalent to the amount of capital invested by BAIC), accounting for 33% of the total registered capital of Beixian Auto Gold, at the cost of CNY 2,208 billion yuan due to BAIC (i.e. withdrawal); and (ii) Beijing Hyundai will withdraw all of its shares in Beixian Auto Gold by reducing its registered capital in Beixian Auto Gold (the amount is equivalent to Beijing Hyundai's investment amount) 14% of the total registered capital of CNG at the cost of Beijing Hyundai's payable to the people of Beijing Hyundai $9.37 billion.
Immediately before the reduction in registered capital, Beijing Auto Gold was the company's contact person, and (i) Hyundai Finance, an independent third party of the company held about 46% of its shares; (ii) BAIC, a non-wholly-owned subsidiary of the company, held about 33% of its shares; (iii) Beijing Hyundai held about 14% of its shares; Beijing Hyundai was co-invested by BAIC to co-invest 50% of its registered capital by BAIC; and (iv) Hyundai Motor, an independent third party of the company, held about 7% of its shares. After the reduction in registered capital is completed, BAIC and Beijing Hyundai will each cease to be shareholders of Beixian Auto Gold.
The purpose of the withdrawal is to further optimize the Group's asset structure, improve the efficiency of capital use and overall return on assets, and is in line with the Group's long-term development strategy plan. After careful evaluation, the Board of Directors believes that the pricing and terms of this transaction are fair and reasonable, conforms to the Group's commercial interests, as well as the overall interests of the Group and all shareholders. Through withdrawal, the Group will return funds to support the Group's business development.