Avatr Motors Hong Kong IPO: New Model for State-Owned Enterprise Reform Unleashing Value of Quality Assets

Hot Topics

Selected Stocks Data Center Market Center Capital Flows Simulated Trading

Client

Invest in stocks with Golden Phoenix Analyst Reports—authoritative, professional, timely, comprehensive—helping you discover potential thematic opportunities!

On March 19, Lantu Auto officially listed on the Main Board of the Hong Kong Stock Exchange, becoming the “First High-End New Energy Vehicle Stock of Central State-Owned Enterprises.” This not only marks Lantu’s leap from Dongfeng Motor’s “尖刀连” (Special Forces Unit) to an international public company but also a milestone event for Dongfeng’s exploration of optimizing state-owned equity structures and unlocking the value of high-quality assets in the new energy sector.

Under the policy guidance of the State-owned Assets Supervision and Administration Commission (SASAC) to deepen SOE reforms and promote the concentration of state capital into strategic emerging industries by the 2026 National Two Sessions, Lantu has adopted a steady “profitable first, then listed” approach, integrating “central enterprise heritage + market vitality.” This creates a new model for SOE capital operations, providing replicable and promotable practical experience for revitalizing existing assets and focusing on core businesses.

Breaking Traditional Listing Paths to Build a New Paradigm of State-Owned Securities

For a long time, traditional SOE listings have been characterized by asset packaging and integration, blurred core business boundaries, and lagging market mechanisms. Some rely on overall group listings to achieve asset securitization, which dilutes emerging high-quality businesses within traditional sectors. Others go public simply for the sake of listing, without stable profit models, making it difficult to reflect the true value of state assets.

Lantu’s listing path breaks these constraints by focusing on specialized spin-offs, market-oriented operations, and profitable listings—forming a new paradigm for the securitization of emerging industries within central enterprises.

As a high-quality asset focusing on high-end new energy vehicles within Dongfeng Motor, Lantu is not just a simple sector split. It leverages Dongfeng’s 57 years of manufacturing expertise, supply chain management, and other core SOE resources to precisely position state equity and operate high-quality assets independently. In terms of ownership structure, it maintains the strategic leadership of state capital, ensuring the security of state assets; operationally, it fully adopts market-oriented governance systems, becoming an independent market competitor.

Regarding listing efficiency, Lantu submitted its application in October 2025 and completed approvals from the National Development and Reform Commission, Ministry of Commerce, State Administration of Foreign Exchange, and China Securities Regulatory Commission in just four months—setting a benchmark for the efficiency of central SOEs’ new energy brands listing in Hong Kong. Behind this achievement is the streamlined decision-making process and market-oriented governance mechanism resulting from optimized state equity structures, demonstrating the effectiveness of reforms that allow “more freedom, better regulation.”

More importantly, Lantu has established a new model of “profitable before listing” for central enterprises. Unlike traditional SOEs that cultivate performance before going public, Lantu has demonstrated real operational results to the capital market.

From 2023 to 2025, revenue increased from 12.75 billion yuan to 34.86 billion yuan, with a compound annual growth rate of 65.4%. In 2025, net profit reached 1.02 billion yuan, with a stable gross margin of 20.9%, ranking among the industry’s top tier. It became the fastest new energy vehicle company to achieve quarterly profitability and positive operating cash flow.

This path of “strengthening performance first, then listing” allows the value of high-quality state assets to be truly reflected in the capital markets, avoiding undervaluation of state assets and laying a solid foundation for subsequent appreciation of state capital. It truly achieves a high degree of integration between the stability of state equity structures and the efficient release of asset value.

Triple Value Reconfiguration of Product, Technology, and Mechanisms to Strengthen Core Barriers for State Asset Preservation and Appreciation

Lantu’s ability to simultaneously optimize its state equity structure and unlock high-quality asset value during listing hinges on a reconfiguration of value from three dimensions: asset positioning, technological core, and institutional mechanisms. This deep resonance between the strategic advantage of state capital and market-oriented management has fortified the core barriers for preserving and increasing the value of state assets.

Aligning with SASAC’s reform goal to focus state capital on strategic emerging industries, Lantu precisely targets high-end new energy vehicles as its core business, abandoning the traditional “big and comprehensive” asset layout of SOEs. It revitalizes existing state assets and concentrates on high-quality assets. As a key platform for Dongfeng to activate its existing new energy assets, Lantu retains core resources like manufacturing and supply chain advantages, and through independent listing, achieves specialized operation of assets, maximizing the value of state capital in the high-end new energy sector.

In product layout, Lantu has taken the lead in covering all categories in high-end new energy vehicles—SUVs, MPVs, and sedans. Its “Three Flagship + Twin Stars” product matrix precisely meets market demand. The Lantu Dreamer has become a benchmark in the high-end MPV market, with an average price exceeding 400,000 yuan, and 55% of users are repeat customers from BBA brands, earning it the reputation of “triple crown” in sales, reputation, and quality. On March 10, the Dreamer reached 200,000 kilometers, demonstrating the brand value of a central enterprise in high-end manufacturing. This asset operation model, focused on core businesses, provides a clear value return path for revitalizing existing assets and focusing on core industries.

The 2026 National Two Sessions explicitly called for “cultivating and expanding emerging industries and future industries, creating new forms of intelligent economy,” with technological innovation at the core of value enhancement for state assets. Lantu abandons the traditional “heavy investment, light transformation” R&D model of SOEs, building five core technological bases: platform architecture, Lanhai Power, intelligent cockpit, intelligent driving, and technological ecosystem. It transforms R&D investment into tangible technological competitiveness and asset value.

By February 2026, Lantu had accumulated 5,828 patents, with 85.35% being invention patents—the highest growth rate among new energy vehicle companies. Its centrally integrated SOA electronic and electrical architecture, developed in-house, is the only recommended technology in the “Central Enterprise Scientific and Technological Innovation Achievements” catalog by SASAC.

More importantly, Lantu adheres to a “listening to advice” culture, incorporating market feedback through user co-creation mechanisms, aligning product development with market needs; implements flat management to empower frontline teams with greater decision-making authority; and constructs market-oriented incentive and assessment mechanisms, deeply linking operational results with team performance. These innovations significantly improve operational efficiency of state assets.

This institutional innovation allows Lantu to retain the resource advantages and responsibilities of central enterprises while achieving the market agility and decision-making efficiency of private companies. The deep integration of governance advantages of state equity and market-oriented operation mechanisms injects continuous vitality into value realization of state assets.

Capital Empowerment for Globalization and a New Journey in High-End Intelligent Manufacturing

2026 marks the start of the “14th Five-Year Plan,” with SASAC explicitly proposing to “optimize the layout and structure of the state-owned economy, enhance core functions of state-owned enterprises, and improve core competitiveness,” promoting the concentration of state capital into three areas. Lantu’s practice of simultaneous optimization of state assets and value appreciation through listing provides a key reference for other central SOEs to revitalize existing assets and focus on core industries, becoming an important model for SOE capital reform.

Listing in Hong Kong is just the beginning of Lantu’s reform journey. Leveraging the resource allocation capabilities of international capital markets, Lantu is further promoting the globalization of its assets, creating a new model for central enterprises to participate in global competition.

According to plans, 2026 will be Lantu’s “Product Year.” On the listing day, the first Hong Kong-listed vehicle, Lantu Taishan X8, was unveiled. As the first strategic model for Lantu’s Hong Kong listing, the Taishan X8 is “China’s largest five-seat SUV,” with a commanding presence and elegant Chinese aesthetics defining a new category of “courtyard-level large five-seat SUV,” featuring a 6.1-square-meter cabin, and 11 trunks with 48 storage compartments for five people.

The Taishan X8 is the first 8-series SUV equipped with four laser intelligent driving systems, debuting the latest Hongmeng cockpit, available in PHEV and EV versions, with 65kWh and 120kWh batteries, respectively, offering industry-leading pure electric range. It precisely targets Chinese family travel needs, redefining the high-end large five-seat SUV market with the “central enterprise’s first stock, the first in five seats” momentum.

Throughout March, Lantu launched multiple new models, further leading the high-end new energy market. On March 17, the Lantu Taishan Technology Refresh Conference announced the delivery of the Ultra version and the launch of the Black Warrior edition. The Ultra and Black Warrior versions are the new generation of 896-line laser radar flagship SUVs, offering more convenient and safer intelligent driving experiences, setting a new standard for “9-series flagship SUVs.” Notably, Lantu’s new vehicles are equipped with L3-level intelligent driving hardware, marking the release of technological dividends, with R&D investments from the state capital translating into competitive advantages in the global market.

In its global layout, Lantu has entered over 40 countries and regions. With the international platform of Hong Kong stocks, its channel development and localization operations in key markets like the Belt and Road Initiative will accelerate, moving from “Lantu of China” to “Lantu of the World.”

Lantu Auto Chairman and Party Secretary Lu Fang stated: “After listing, we will adopt a more transparent governance mechanism to face investors, allowing those who hear the gunfire to command the battle.” This reflects the deepening of market-oriented reforms and further improvement of governance mechanisms after optimizing the state equity structure. From Dongfeng’s high-end new energy sector, to the first central SOE new energy stock listed in Hong Kong, and now heading toward global high-end intelligent manufacturing, every step of Lantu’s exploration is a vivid practice of deepening SOE reform and activating the value of state assets.

Today, as SOE reform advances in depth, the “Lantu Model” not only provides practical solutions for revitalizing existing assets and focusing on core industries but also demonstrates the enormous potential of deep integration between state capital and market mechanisms.

As a model of SOE capital reform, Lantu is leveraging multiple advantages—capital empowerment, technological innovation, and global expansion—to unleash strong growth dividends for state capital in the high-end new energy sector, contributing to high-quality development of China’s automotive industry and the optimization and restructuring of the state-owned economy, writing a vivid chapter of central enterprise reform.