Nan Fang Du Shi Bao·2025-08-23 03:11Core Viewpoint - Dongfeng Group is privatizing and delisting to focus on developing its electric vehicle brand, Lantu, which is set to become the first publicly listed subsidiary of a central enterprise in the new energy vehicle sector [2][3]. Group 1: Company Strategy - Dongfeng Group's decision to privatize is driven by underperformance in overall results and a long-term undervaluation of its H-shares, which have lost their financing function [2]. - The merger will allow Dongfeng to concentrate on the new energy vehicle industry and integrate quality resources into strategic emerging industries, aiming to provide good returns to shareholders [2][3]. Group 2: Lantu's Market Position - Lantu is positioned as the core of Dongfeng's independent brand electric vehicle segment, with significant market influence and brand value [3]. - The introduction of Lantu to the Hong Kong Stock Exchange will enhance its financing channels, brand image, and international expansion, while also improving corporate governance [3]. Group 3: Financial Performance - Lantu is nearing profitability, having achieved a single-quarter profit in Q4 of the previous year, although it reported a tax-pre-loss of 1.98 billion yuan and a tax-after loss of 1.472 billion yuan for 2023 [3][4]. - For 2024, Lantu's tax-pre-loss is expected to narrow to 243 million yuan, with a tax-after loss of 18 million yuan [3]. Group 4: Transaction Details - The transaction involves a "share distribution + absorption merger" model, where Dongfeng will distribute 79.67% of Lantu's shares to all shareholders before Lantu's introduction to the stock exchange [4]. - The total acquisition price is set at 10.85 HKD per share, with a cash component of 6.68 HKD and a share component of 4.17 HKD [5]. Group 5: Sales and Growth Potential - Lantu's sales from January to July reached 66,680 units, marking an 85.8% year-on-year increase, with consistent monthly sales exceeding 10,000 units since March [5][6]. - Lantu aims to achieve a sales target of 200,000 units for the year, with confidence in meeting this goal due to new product launches in the second half of the year [6]. Group 6: Upcoming Products - The Lantu FREE+ has been successfully launched and is performing well in the market, while the Lantu Zhiyin, developed in collaboration with Huawei, is set to launch soon [7][8].