Core Insights - Dongfeng Motor Group Co., Ltd. has issued a profit warning, expecting a net profit range of 30 million to 70 million yuan for the first half of 2025, representing a decline of approximately 90% to 95% compared to the same period in 2024 [1] Sales Performance - In the first half of this year, Dongfeng Group's cumulative sales reached 823,900 units, a year-on-year decline of 14.7%. New energy vehicle sales were 204,400 units, an increase of 33%, but this was insufficient to offset the downturn in traditional fuel vehicles [2] - In 2024, Dongfeng Group's total vehicle sales were 1,895,900 units, down 9.2% year-on-year. The joint venture segment faced significant pressure, with total sales of 1,105,200 units, also down 9.2% year-on-year [3] Joint Venture Challenges - The core joint venture segment has become the largest drag on performance, with Dongfeng Nissan and Dongfeng Honda experiencing sales declines of 23.5% and 37.4%, respectively, in the first half of the year. Additionally, Shenlong Automobile's sales decreased by 28.3% year-on-year [2][3] Growth in Independent Brands - In contrast, the independent passenger vehicle segment showed strong growth, with annual sales of 438,900 units, a year-on-year increase of 26.4% [4] - The company has initiated deep reforms, including the establishment of Yipai Technology Co., Ltd. in June to integrate resources from three major brands and accelerate the development of its independent passenger vehicle business [4] Investment and Future Outlook - In July, the company invested 1 billion yuan in Lantu Automotive to accelerate the development of its high-end new energy brand. However, investments in R&D and channel development are expected to take time to convert into profits, with losses in the independent business segment further widening in the first half of the year [4] - The anticipated "Dongfeng-Changan restructuring" was announced to be paused in early June, while internal anti-corruption efforts within Dongfeng have intensified, with multiple high-level disciplinary cases reported in 2025 [4]