Dongfeng Group decided to withdraw its application documents for listing on GEM from the Shenzhen Stock Exchange but instead to apply for listing on the Main Board to consolidate and improve the company’s corporate structure.
Dongfeng Group announced on October 18 that the company has decided to withdraw the application documents for listing on GEM from the Shenzhen Stock Exchange and plans to apply for public issuance of CNY common shares (A shares) and listing on the Main Board of the Shenzhen Stock Exchange. This decision is based on the company's strategic adjustment combined with the current market situation.
Dongfeng Group justified its return to A shares from Hong Kong shares by saying that the company aims to further improve the corporate governance structure and build a financing platform at home and abroad.
Public information shows that in October 2020, Dongfeng Group applied to Shenzhen Stock exchange for public offering of CNY common shares (A shares) and listing on GEM. The application passed the review of the listing audit center of Shenzhen Stock Exchange in December last year, but has not obtained the consent of China Securities Regulatory Commission in the follow-up.
Dongfeng Group intends to raise CNY 21 billion, mainly for the development of the brand-new high-end energy vehicle, Dongfeng's new energy platform architecture project, automatic driving vehicle project, hydrogen fuel cell research and development project.
The company intends to issue no more than 10% of the total share capital after the completion of the Main Board IPO, less than CNY 957 million ordinary shares (A shares). It would not include any shares that may be issued according to the overallotment right.
Dongfeng Motor Group Co., Ltd., established in 2001, is an automobile and auto parts manufacturer, mainly engaged in the production and sales of commercial vehicles, passenger vehicles, auto engines and parts, equipment manufacturing, financial business and other automobile related businesses.
As of today, the company's business scope includes investment in automobile industry, automobiles, auto parts, metal machinery, castings and forgings, starter motor, powder metallurgy, development, manufacturing and sales of tools and molds, technical consultation, technical services, information services and after-sales services related to the company's business projects, as well as import and export business. In addition, Dongfeng Motor Group Co., Ltd. has invested in 36 companies.
On August 26, Dongfeng Group issued the financial report for the first half of 2021. From the financial report, the operating revenue of Dongfeng Group in the first half of the year was CNY 69.85 billion, a year-on-year increase of 38%; The gross profit was CNY 10.20 billion, a year-on-year increase of 30%; The profit attributable to equity holders of the parent company was CNY 8.63 billion, a year-on-year increase of 136.87%; The basic earnings per share is 100.15.
In addition, the vehicle production and sales volume of Dongfeng group were around 1.42 million in the first half of 2021. The sales volume of passenger cars was about 1.08 million, with a year-on-year increase of about 21.9%; The sales volume of the joint venture passenger vehicle business was around 933,000, with a year-on-year increase of 20.4%; The sales volume of commercial vehicles was about 349,200, with a year-on-year increase of 33.2%.