Core Viewpoint - Dongfeng Motor Group is selling a 50% stake in Dongfeng Honda Engine Co., Ltd. to optimize its fuel vehicle asset structure and accelerate its transition to new energy vehicles amid challenges in the expanding NEV market in China [1] Group 1: Company Overview - Dongfeng Honda Engine Co., Ltd. was established on July 1, 1998, as a joint venture between Dongfeng Motor Company and Honda Motor Co., Ltd. [2] - The company is responsible for the development, production, and sales of engines and related components for passenger vehicles, primarily supplying products for GAC Honda's series of models [2] Group 2: Financial Performance - For 2024, Dongfeng Honda Engine is projected to have a revenue of approximately 9.566 billion yuan, with a net loss of about 228 million yuan [1] - In the first half of this year, the company reported a revenue of 3.807 billion yuan, achieving a net profit of approximately 371 million yuan [1] Group 3: Market Context - In the first half of this year, GAC Honda's sales decreased by 25.63% year-on-year, while Dongfeng Honda's sales fell by 37.4% year-on-year [4]