CHANGAN AUTOMOBILE-B(SZ:000625) Jin Rong Shi Bao·2025-06-12 03:14Core Viewpoint - The restructuring plans of Dongfeng Motor Group and China Ordnance Equipment Group have reached a new turning point after nearly four months of developments, with Dongfeng Group deciding not to engage in asset and business restructuring at this time, while the restructuring of the automotive business of China Ordnance Equipment Group is proceeding as planned [1][3]. Group 1: Restructuring Developments - On June 5, multiple listed companies from the "Dongfeng system" and "Ordnance system" released announcements regarding their restructuring progress, indicating that Dongfeng Group will not be involved in the restructuring of related assets and businesses [1]. - The State-owned Assets Supervision and Administration Commission (SASAC) has approved the separation of the automotive business from China Ordnance Equipment Group, which will become an independent central enterprise [1][3]. - Following the separation, Changan Automobile will have its indirect controlling shareholder changed to the newly established central enterprise for the automotive business, although the actual controller remains unchanged [1]. Group 2: Market Reactions - As of June 5, shares of "Ordnance system" companies generally rose, with Huachuang Technology up 13.32%, and several others reaching their daily limit, while Dongfeng system stocks performed poorly, with Dongfeng Motor and Dongfeng Technology both dropping over 6% [2]. Group 3: Industry Context and Future Outlook - Analysts suggest that the change in Changan Automobile's indirect controlling shareholder to the new central enterprise will facilitate better resource integration and more effective overseas expansion [3]. - The restructuring is seen as a response to the pressures of transitioning to electric vehicles, with the establishment of new automotive central enterprises expected to enhance competitiveness in the new energy vehicle market [3][4]. - The automotive industry in China is undergoing significant changes, with a focus on increasing efficiency and high-quality development as core goals [3][7]. Group 4: Performance Metrics - Dongfeng Group's total vehicle sales for the first four months of the year were 526,700 units, a decrease of 20.8% year-on-year, while its high-end electric brand "Lantu" achieved sales of 36,053 units, up 77% [5]. - Changan Automobile reported sales of 895,800 units from January to April, with 256,100 units being new energy vehicles [6]. - The three major automotive central enterprises are projected to have a combined global market share of only 8.7% in 2024, significantly lower than leading international competitors [6].