

Core Viewpoint - Dongfeng Group is facing significant challenges, with a projected decline in net profit for the first half of 2025 by approximately 90% to 95% compared to the same period in 2024, primarily due to declining sales and profits in its joint venture non-luxury brand segment and increased investments in its independent business [1][2]. Sales Performance - From January to July this year, Dongfeng Group's cumulative sales of new energy vehicles reached 249,600 units, a year-on-year increase of about 35.5%, but overall vehicle sales fell by approximately 8.9% to 978,500 units [2]. - The parent company, Dongfeng Motor Group, reported a cumulative vehicle sales of 1,260,400 units during the same period, down about 10.8% year-on-year [2]. - Sales of joint venture brands have significantly declined, with Dongfeng Nissan's sales down 16.8% to 306,400 units, Dongfeng Honda down 31.2% to 173,400 units, and Shenlong Automobile down 29.2% to 30,400 units [2]. Strategic Adjustments - In response to performance pressures, Dongfeng Group has made several strategic adjustments, including the establishment of Yipai Automotive Technology Company to focus on independent passenger vehicle development [4]. - The company aims for a total annual sales target of 3 million vehicles, including 1 million new energy vehicles and 900,000 independent new energy vehicles [4]. - Dongfeng Yipai Technology is expected to enhance decision-making efficiency and market responsiveness through the integration of various brands and resources [4]. New Product Launches - Dongfeng Nissan has launched the N7, a new pure electric model featuring advanced intelligent driving capabilities [3]. - Dongfeng Honda introduced the S7, marketed as a high-quality electric vehicle with a range of 620 to 650 km [3]. - Shenlong Automobile has launched a new energy brand, with its first model, the Shijie 06, already on the market [3]. Future Outlook - Dongfeng Yipai Technology plans to introduce 20 new models by 2028, with a focus on continuous product evolution [5]. - The company is also collaborating with Huawei on a high-end intelligent SUV project, set to launch in 2026 [4].