Mei Ri Jing Ji Xin Wen·2025-08-23 02:04Core Viewpoint - Dongfeng Group Holdings (00489.HK) announced that its subsidiary, Lantu Automotive, will go public in Hong Kong through an introduction listing, while Dongfeng Group will simultaneously complete its privatization and delisting [2][4]. Group 1: Transaction Details - The transaction involves a combination of "equity distribution + absorption merger," where Dongfeng Group will distribute its 79.67% stake in Lantu Automotive to all shareholders, followed by Lantu's listing on the Hong Kong Stock Exchange [4]. - The overall acquisition price is set at HKD 10.85 per share, comprising a cash consideration of HKD 6.68 and an equity consideration of HKD 4.17 [4]. Group 2: Financial Performance - Dongfeng Group's market capitalization as of July 31, 2025, is HKD 39.12 billion, with a closing price of HKD 4.74 per share, resulting in a price-to-book (PB) ratio of 0.25 [6]. - In the first half of the year, Dongfeng Group sold approximately 823,900 vehicles, a year-on-year decrease of 14.7%, while achieving a sales revenue of CNY 54.533 billion, a year-on-year increase of 6.6% [6][7]. - The gross profit for the same period was CNY 7.599 billion, reflecting a year-on-year increase of 28.0%, with a gross margin of 13.9%, up 2.3 percentage points [6]. Group 3: Lantu Automotive's Performance - Lantu Automotive has shown promising growth, with a significant reduction in losses, moving closer to profitability. In 2023, the pre-tax net loss was CNY 1.98 billion, which narrowed to CNY 243 million in 2024 [9]. - The company aims to achieve a sales target of 200,000 vehicles this year, having sold approximately 56,100 vehicles in the first half, which is 28% of its annual goal [10]. - Lantu's independent listing is expected to enhance its financing capabilities, brand image, and international expansion, potentially unlocking significant value creation [10].