DONGFENG GROUP(HK:00489) Jin Rong Jie·2025-08-08 06:09Core Viewpoint - Dongfeng Group recently issued a profit warning, expecting a year-on-year decline of 90% to 95% in net profit attributable to shareholders for the first half of the year, amounting to only 30 million to 70 million yuan, highlighting the significant challenges faced by traditional automakers during the transition to new energy vehicles [1][3]. Group 1: Performance Decline - The decline in performance is primarily attributed to the severe impact on the joint venture passenger vehicle business, which has seen a significant drop in both sales and profits due to the continuous loss of market share in the non-luxury joint venture segment [2][3]. - Traditional profit-generating brands under the company, such as Dongfeng Honda and Dongfeng Nissan, are also facing developmental obstacles, struggling to maintain previous profit levels amid changing market conditions [3]. Group 2: Increased Investment in Transformation - The company has significantly increased its investment in its independent business sector, covering research and development, brand building, channel development, and marketing, which, while beneficial for long-term growth, has put noticeable pressure on short-term profits [4]. - During the transition to new energy, Dongfeng Group is committed to investing 50 billion yuan over the next three years in the development of new energy businesses, indicating a strong determination to transform despite the current performance pressures [4].