AutoBeta(AutoBeta.net)05/26 Report--

On May 25, Dongfeng Motor Co., Ltd. (hereinafter referred to as "Dongfeng Motor") issued a notice that Dongfeng Motor received notice from its controlling shareholder, Dongfeng Motor Co., Ltd. (hereinafter referred to as "Dongfeng Co., Ltd.") on May 24. Dongfeng Co., Ltd. is planning the transfer of shares in the company, which may lead to a change of control of the company.

Dongfeng Motor said that in view of the fact that the above matters are under discussion and there is still significant uncertainty, in order to ensure fair information disclosure, safeguard the interests of investors and avoid abnormal fluctuations in the company's share price, the company's shares were temporarily suspended from trading on Wednesday, May 25, 2022. In accordance with the relevant regulations such as the rules on the listing of stocks on the Shanghai Stock Exchange and the guidelines on self-discipline Supervision of companies listed on the Shanghai Stock Exchange No. 4-stopping and resuming trading, upon application by the company to the Shanghai Stock Exchange, the company's shares will continue to be suspended from the morning of Thursday, May 26, 2022, and the suspension is expected to be one trading day.

On May 26, the Financial Associated Press reported that a person familiar with the matter said: "Dongfeng Motor is temporarily suspended because Dongfeng Co., Ltd. is discussing with Dongfeng Group to transfer its stake in Dongfeng Motor." At present, the specific matters between the two sides have not been finalized. If the transaction is completed, Dongfeng Motor will break away from Dongfeng Co., Ltd., and the controlling shareholder will become Dongfeng Automobile Group, which will be directly managed by Dongfeng Automobile Group. This also means, "Dongfeng Motor (Dongfeng Group) Sun Company will become a subsidiary, followed by further new actions at the capital level." In this regard, Nissan China, which holds 50% of Dongfeng Motor's controlling shareholder, said that there is no relevant information at present, so please refer to Dongfeng Motor announcement.

According to public data, Dongfeng Automobile is a large joint-stock enterprise in the light commercial vehicle business of Dongfeng Automobile Group. Dongfeng Co., Ltd. holds a 60.1% stake in Dongfeng Automobile, while Dongfeng Co., Ltd. was established in 2003. It is a joint venture between Dongfeng Automobile Group and Nissan Automobile at 50:50, with a registered capital of 16.7 billion yuan. Its companies include Dongfeng Nissan, Dongfeng Qichen, Dongfeng Infiniti, Dongfeng Motor, Zhengzhou Nissan and other companies. According to Dongfeng's limited stock ratio structure, Dongfeng Motor Group and Nissan indirectly hold a 30% stake in Dongfeng Motor.

As early as February 2019, Dongfeng Co., Ltd. started asset integration and injected its parts group business into Dongfeng Technology to achieve the listing of the plate business as a whole. According to the plan, Dongfeng Technology intends to absorb and merge Dongfeng Auto parts Group by issuing shares, which has a 100% equity estimate of 4.676 billion yuan. For this equity transfer, if the above transaction is completed, the controlling shareholder of Dongfeng Motor will become Dongfeng Automobile Group, which will be directly managed by Dongfeng Automobile Group. According to people familiar with the matter, the "split" of Dongfeng shares is only part of Dongfeng's overall reform, which, according to senior officials of Dongfeng Motor Group, is aimed at slimming down and increasing efficiency, and there will be more actions to follow. Some industry insiders also pointed out that the transfer of shares by Dongfeng Limited may be related to the changes in the share ratio of the joint venture company. So far, Dongfeng Limited and Dongfeng Motor have not made a clear response to the above reports.

Data show that in the past 2021, Dongfeng Co., Ltd. has accumulated sales of 1.38 million vehicles, making it the subsidiary of Dongfeng Automobile Group with the highest contribution to sales and profits. Dongfeng has accumulated sales of 182700 vehicles in 2021, an increase of 6.56% over the same period last year. The net profit attributed to the owner of the parent company is 372 million yuan. On May 9, Dongfeng Motor announced that it produced and sold KuaiBao in April this year. Data show that Dongfeng sold 7044 vehicles in April, down 66.29 percent from a year earlier, of which 1237 new energy vehicles were sold, up 18.26 percent from a year earlier. Cumulative sales from January to April were 49616, down 28.13% from the same period last year, of which 5565 new energy vehicles were sold, up 45.07% from the same period last year.

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