Dongfeng Motor Group's capital restructuring plan approved by shareholders' meeting; Lantu Automotive plans to list on the Hong Kong Stock Exchange through an introduction method

Staff Reporter Liu Zhao

On the evening of March 9, Dongfeng Motor Corporation (hereinafter referred to as “Dongfeng Group”) announced that the proposals related to privatization and the listing of Lantu Automotive Technology Co., Ltd. (hereinafter “Lantu Auto”) through a listing introduction on the Hong Kong Stock Exchange have been approved by high votes at the extraordinary general meeting and the H-share shareholder meeting. According to the current plan, Lantu Auto is expected to complete its Hong Kong listing through share distribution, while Dongfeng Group will delist and deregister its legal entity after the relevant procedures are completed.

A person in charge from Dongfeng Group told Securities Daily that the smooth approval of this plan marks that the “privatization + spin-off of high-quality new energy assets” capital operation initiated by Dongfeng Motor Corporation (hereinafter “Dongfeng”) has officially entered the implementation stage. This not only represents an important practice for central enterprises to fulfill state-owned asset reform requirements and deepen market value management but also provides a replicable reform path for automotive industry central enterprises to seize the opportunities of the new energy transition and optimize capital layout. It demonstrates the responsibility and commitment of state-owned automotive enterprises in industry upgrading.

From a transaction structure perspective, this operation adopts a combined model of “share distribution + absorption merger.” After the transaction, Dongfeng will achieve 100% state-controlled ownership of Dongfeng Group, while Lantu Auto will become an independent platform facing the capital market for new energy vehicles. Compared to a single financing or spin-off, this arrangement emphasizes restructuring the equity architecture, optimizing resource allocation, and providing independent development space for new energy business.

It is noteworthy that Lantu Auto’s listing in Hong Kong adopts the “introduction listing” method, meaning no new shares are issued and no immediate fundraising occurs. This indicates that its primary purpose for listing is not short-term financing but to leverage the international capital market platform to enhance asset transparency, improve market-oriented governance mechanisms, and reserve space for subsequent financing, global expansion, and technological investment.

From Dongfeng Group’s perspective, this capital restructuring is also seen as an important step in promoting its new energy transformation. Previously, due to factors such as the Hong Kong stock market environment and industry transition cycle, Dongfeng Group’s valuation had been under long-term pressure, and the resource integration and financing functions of its listing platform were somewhat limited. Against this backdrop, privatization to consolidate equity and then pushing core new energy assets onto the capital market can objectively improve decision-making efficiency and facilitate the concentration of resources such as capital, technology, and talent into new energy and intelligentization businesses.

As an important platform for Dongfeng’s new energy transformation, Lantu Auto’s operational data has improved in recent years. Financial data shows that from 2023 to 2025, Lantu Auto’s sales volume increased from 50,300 units to 150,200 units, and operating revenue grew from 12.75 billion yuan to 34.86 billion yuan; in 2025, net profit reached 1.02 billion yuan with a gross margin of 20.9%. The data indicates that Lantu Auto has shifted from an early stage of high investment to a development stage characterized by scale growth and operational improvement, which is also a key foundation for its independent listing on the capital market.

In addition to operational improvements, technological reserves are repeatedly emphasized as a supporting factor in this capital operation. As of December 31, 2025, Lantu Auto had obtained 1,874 patents, with another 5,405 patents pending, covering areas such as intelligent connectivity, new energy, assisted driving, and vehicle safety.

Zhang Xiang, a visiting professor at Yellow River Science and Technology College, told Securities Daily that accelerating the restructuring of capital, technology, and brand resources among vehicle manufacturers has become a trend. Especially in the context of rising penetration of new energy and accelerated development of intelligent competition, how traditional large auto groups reshape their capital platforms and highlight core businesses has become a key question in the new wave of transformation. Dongfeng’s choice to advance privatization and independent listing of new energy assets simultaneously essentially aims to respond to industry upgrade needs with a clearer capital structure, providing a new reference for subsequent reforms in the central enterprise automotive sector.

It is understood that Lantu Auto submitted its listing application in October 2025 and received the Hong Kong Stock Exchange’s conditional approval on February 11, 2026. If subsequent processes proceed smoothly, Lantu Auto is expected to complete its Hong Kong listing introduction by March 19.

For Dongfeng, this is not only a capital restructuring but also a systematic resource reallocation centered on its core new energy business. For the market, the more important focus moving forward is whether Lantu Auto can continue to deliver on expectations of sustained sales growth, profitability recovery, and international expansion after its listing.