Hu Xiu·2025-08-23 04:06Core Viewpoint - Dongfeng Group Holdings (00489.HK) announced significant developments regarding its subsidiary, Lantu Motors, which will go public in Hong Kong through an introduction listing, while Dongfeng Group will simultaneously complete its privatization and delisting [2][5]. Group 1: Transaction Details - The transaction involves a "share distribution + absorption merger" model, where Dongfeng Group will distribute its 79.67% stake in Lantu Motors to all shareholders, followed by Lantu's listing on the Hong Kong Stock Exchange [5]. - Dongfeng Motor will pay equity consideration to its controlling shareholder and cash consideration to minority shareholders to achieve 100% control over Dongfeng Group [6]. - The total acquisition price is set at HKD 10.85 per share, comprising HKD 6.68 in cash and HKD 4.17 in equity from Lantu [7]. Group 2: Financial Performance - Dongfeng Group's market capitalization as of July 31, 2025, is projected to be 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 [7]. - In the first half of the year, Dongfeng Group sold approximately 823,900 vehicles, a year-on-year decrease of 14.7%, with sales revenue of CNY 54.533 billion, up 6.6% [8]. - The gross profit was CNY 7.599 billion, reflecting a 28.0% increase, while the net profit attributable to shareholders dropped by 92% to CNY 55 million [8]. Group 3: Lantu Motors' Growth Potential - Lantu Motors, as a high-end smart electric vehicle brand, has shown strong growth and is considered one of Dongfeng's most valuable assets [8]. - Lantu Motors is nearing profitability, with a tax-adjusted net loss of CNY 1.472 billion in 2024, down from CNY 19.8 billion in 2023, indicating a significant improvement [14]. - The company aims to achieve annual sales of 200,000 vehicles, having sold approximately 56,100 units in the first half of the year, which is 28% of its annual target [15]. Group 4: Strategic Implications - The listing of Lantu Motors is expected to enhance its financing channels, brand image, and international expansion, potentially unlocking significant value creation [16]. - The transaction is anticipated to clarify the investment value of Lantu Motors, which has been obscured under Dongfeng Group's complex asset structure [17].