Guan Cha Zhe Wang·2025-08-11 08:39Core Viewpoint - Dongfeng Motor Group Co., Ltd. has announced a short suspension of its shares due to the pending release of insider information, following a profit warning indicating a significant decline in net profit for the first half of the year [1][3]. Financial Performance - For the first half of 2023, Dongfeng Group expects a net profit of RMB 30 million to 70 million, representing a year-on-year decline of 90% to 95% [3]. - In 2024, Dongfeng Group reported a revenue of RMB 106.197 billion, a year-on-year increase of 6.86%, and a net profit of RMB 58 million, recovering from a loss of RMB 3.887 billion in the previous year [6]. - The company’s share of profits from joint ventures decreased by approximately RMB 78 million, with Dongfeng Nissan's profit down by about RMB 25 million and Dongfeng Honda's profit down by approximately RMB 308 million [6]. Sales Performance - In 2024, Dongfeng Group's cumulative sales reached 1.8959 million vehicles, a year-on-year decline of 9.2%, with 823,900 vehicles sold in the first half of the year, down 14.7% year-on-year [5]. - Dongfeng Nissan's cumulative sales in 2024 were 631,200 vehicles, down 12.7% year-on-year, while Dongfeng Honda's sales fell by 29.2% to 428,200 vehicles [5]. Market Dynamics - The decline in profits is attributed to the continued downturn in the non-luxury joint venture market, which has significantly impacted sales and profits in Dongfeng's joint venture passenger vehicle business [3]. - Increased competition has led Dongfeng Group to invest more in research and development, brand building, and marketing within its independent business sector [3][9]. R&D Investment - Dongfeng Group's net other expenses amounted to approximately RMB 5.832 billion, a year-on-year increase of 4.12%, primarily due to rising R&D costs, which grew by 6.15% [9].