Recently, the financial markets have been highly volatile, with the stock market's performance even surpassing that of the traditionally high-volatility encryption currency market. Among them, the latest announcement from Dongfeng Motor Group has triggered a strong reaction in the market.

On the evening of August 22, Dongfeng Motor Group Co., Ltd. (0489.HK) announced a significant announcement, stating that its subsidiary Lantu Automotive will be listed on the Hong Kong Stock Exchange through an introduction method, while Dongfeng Motor Group will undergo privatization and delisting. This innovative transaction plan is believed to potentially strengthen Dongfeng's strategic layout and set a new benchmark for state-owned enterprise reform.

The transaction adopts the model of "equity distribution + absorption merger". First, Dongfeng Group Co., Ltd. will proportionally distribute its 79.67% stake in Lantu Automotive to all shareholders, and then Lantu Automotive will be listed on the Hong Kong Stock Exchange. Secondly, Dongfeng Motor's wholly-owned subsidiary will achieve a comprehensive acquisition of Dongfeng Group Co., Ltd. by paying with equity and cash.

The total acquisition price for this transaction is HKD 10.85 per share, of which the cash portion is HKD 6.68 and the value of the Lantu equity is HKD 4.17. This plan aims to address the issue of Dongfeng Group's stock being undervalued in recent years, as its market capitalization has long been below its net assets.

It is worth noting that as a high-end intelligent new energy brand independently developed by Dongfeng, Lantu Automotive has recently shown impressive performance. In July, Lantu Automotive's delivery volume reached 12,135 units, a year-on-year increase of 102% and a month-on-month increase of 21%, achieving growth for six consecutive months. From January to July this year, Lantu Automotive's cumulative sales reached 68,263 units, a year-on-year increase of 88%.

After the announcement of this news, the price of Dongfeng Motor Group's American Depositary Receipts (ADR) skyrocketed by more than 91% within just one hour, ultimately closing at $61, with an increase of 87.69%.

This event once again highlights the current market's high sensitivity, with investors reacting swiftly and dramatically to major strategic adjustments made by companies. At the same time, it also reflects the significant position of the new energy vehicle industry in the capital market, as well as investors' high attention to the future development of this sector.