Sou Hu Cai Jing·2025-08-23 00:07Core Viewpoint - Dongfeng Group announced a significant strategic adjustment, with its subsidiary, Lantu Automotive, planning to enter the Hong Kong stock market through a listing by introduction, while Dongfeng Group will complete its privatization and delisting [1][3]. Group 1: Transaction Details - The transaction employs an innovative "equity distribution + absorption merger" model, where Dongfeng Group will distribute 79.67% of its shares in Lantu Automotive to all shareholders, followed by Lantu's listing on the Hong Kong Stock Exchange [3]. - Dongfeng Group's wholly-owned subsidiary, Dongfeng Motor Group (Wuhan) Investment Co., Ltd., will act as the absorbing entity, paying equity consideration to Dongfeng Group's controlling shareholder and cash consideration to other minority shareholders, achieving 100% control of Dongfeng Group [3]. - The total acquisition price is set at HKD 10.85 per share, with cash consideration of HKD 6.68 and equity consideration of HKD 4.17 per share [3]. Group 2: Financial Performance and Market Position - Dongfeng Group has faced valuation challenges due to industry transformation, with a price-to-book ratio of only 0.25 as of July 31, 2025, indicating a long-term market value below net assets [3]. - Lantu Automotive has shown strong growth, with a delivery volume of 85,697 vehicles in 2024, representing a year-on-year increase of approximately 70% [4]. - In the first half of 2025, Dongfeng Group reported revenue of CNY 54.53 billion, a 6.6% increase year-on-year, but a significant decline in profit attributable to equity holders of the parent company, down 91.9% to CNY 55 million [4].