Sou Hu Cai Jing·2025-08-23 08:46Core Viewpoint - Dongfeng Group announced the listing plan for its subsidiary, Lantu Automotive, which will adopt an introduction listing method on the Hong Kong Stock Exchange, while Dongfeng Group will complete its privatization and delisting [1] Group 1: Listing Structure and Financial Details - The transaction involves a "share distribution + absorption merger" model, where Dongfeng Group will distribute 79.67% of Lantu's shares to its shareholders and then Lantu will be listed on the Hong Kong Stock Exchange [1] - The total acquisition price is set at HKD 10.85 per share, with a cash consideration of HKD 6.68 and a share consideration of HKD 4.17 [1] - As of July 31, 2025, Dongfeng Group's total market capitalization is only HKD 39.12 billion, with a price-to-book (PB) ratio of 0.25 [2] Group 2: Performance Metrics - In the first half of the year, Dongfeng Group sold approximately 824,000 vehicles, a year-on-year decrease of 14.7%, but sales revenue reached HKD 54.53 billion, a year-on-year increase of 6.6% [2] - Lantu Automotive delivered 85,700 vehicles in 2024, a year-on-year increase of about 70%, and has consistently sold over 10,000 units for five consecutive months in 2025 [3] Group 3: Strategic Implications - Lantu Automotive's introduction listing is expected to enhance its financing channels, improve brand image, and expand into international markets, potentially unlocking significant value creation [3] - The introduction listing allows Dongfeng to maintain approximately 62% control over Lantu after the share distribution, avoiding dilution of ownership that could occur with an independent IPO [6] - The listing aligns with the State-owned Assets Supervision and Administration Commission's encouragement for state-owned enterprises to enhance capital efficiency through mixed reform and spin-off listings [6]