Core Viewpoint - Dongfeng Group's stock surged nearly 70% following the announcement of its subsidiary, Lantu Automotive, going public through a reverse listing on the Hong Kong Stock Exchange, while Dongfeng Group initiates a privatization process and plans to delist from the Hong Kong market [1][3]. Group 1: Privatization Plan - The privatization plan involves a "share distribution + absorption merger" model, where Dongfeng Group will distribute 79.67% of its shares in Lantu Automotive to all shareholders [3]. - After the share distribution, Lantu Automotive will be listed on the Hong Kong Stock Exchange without issuing new shares or raising funds [3]. - 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, representing a significant premium over the last closing price before suspension [3]. Group 2: Strategic Considerations for Lantu Automotive - Dongfeng Group cited underperformance in overall results due to industry transformation and intensified market competition, leading to a low valuation and market capitalization below net assets [4]. - Lantu Automotive has shown strong sales performance, with a projected delivery of 85,697 vehicles in 2024, a year-on-year increase of approximately 70%, and a cumulative sales increase of 88% in the first seven months of the year [4]. - Financially, Lantu Automotive's pre-tax net loss narrowed to CNY 243 million in 2024, with a net loss of CNY 18 million after tax, and it is expected to achieve quarterly profitability in Q4 2024 [4]. - The listing is expected to enhance Lantu Automotive's access to capital markets, facilitating funding for R&D in key areas such as smart driving and battery technology, thereby improving product competitiveness and driving innovation [4].