Core Viewpoint - Dongfeng Motor Group Co., Ltd. (00489.HK) has issued a profit warning, expecting a significant decline of 90% to 95% in net profit attributable to shareholders for the first half of 2025, with a profit range of 30 million to 70 million yuan [2] Group 1: Performance Decline Reasons - The decline in Dongfeng Group's performance is attributed to two main factors: a shrinking non-luxury brand market affecting joint ventures like Dongfeng Nissan and Dongfeng Honda, which saw sales drop by 23.5% and 37.4% respectively [4] - Despite a 33.0% year-on-year increase in new energy vehicle sales, reaching 204,400 units, the overall sales for Dongfeng Group fell by 14.7% to 823,900 units in the first half of the year [4] Group 2: Strategic Initiatives - In response to performance pressures, Dongfeng Group and its controlling shareholder, Dongfeng Motor Corporation, have taken several actions since June, including the establishment of Yipai Automotive Technology Company to focus on the development of independent passenger vehicles [4] - The company aims for a total annual sales target of 3 million units, including 1 million new energy vehicles and 900,000 independent new energy vehicles [4] Group 3: Recent Sales Performance - Dongfeng Motor has reported a strong start in the second half of the year, with July sales reaching 205,000 units, a year-on-year increase of 27.5%, including 172,000 passenger vehicles and 33,000 commercial vehicles [5] - New energy and independent brands continue to lead, with new energy vehicle sales of 90,000 units, up 19.7%, and independent brand sales of 132,000 units, up 26.8% [5] Group 4: Future Plans - Dongfeng Yipai Technology plans to launch over 20 models by 2028, including a high-end smart SUV developed in collaboration with Huawei, targeting the mid-to-high-end market [6] - The company aims to introduce over 30 overseas models by 2027 and plans to establish over 2,000 global outlets by 2027, with a localization manufacturing target of over 20% by 2026 [6]