Dongfeng Group intends to list on the Shenzhen Stock Exchange GEM.

On the evening of July 27, Dongfeng Group’s shares announced that the company intends to apply for an initial public offering of RMB common stock (A-shares) shares and to list them on the Gem of the Shenzhen Stock Exchange (hereinafter referred to as the Shenzhen Stock Exchange).
According to the announcement, Dongfeng Group shares have held a meeting of the board of directors on July 27, passed the proposal A-share issue and related authorization matters, and decided to submit such bills to the interim shareholders’ meeting, the domestic stock class shareholders’ meeting and the H-share class shareholders’ meeting for approval.
Dongfeng Group shares said that the listing of Shenzhen Stock Exchange is to further improve the company’s governance structure, to build domestic and foreign financing platform.
Dongfeng Group shares issued A-shares are priced at RMB1 per share, and the number of shares issued does not exceed 957,346,666, i.e. not more than 10% of the company’s total share value after the issuance of A-shares.
Dongfeng Group shares may be authorized by the lead underwriter to over-sell at the same issue price, not exceeding 15% of the underwriting amount of the shares.
In accordance with the needs of business cooperation and financing scale, Dongfeng Group shares will implement a strategic allocation at the time of the issuance of A-shares, the allocation of some shares to investors in line with the company’s development strategy requirements.
Dongfeng Group shares in the A-share issue raised funds, mainly used in four areas: new brand high-end new energy passenger car projects, next-generation automotive and forward-looking technology development projects, digital platform and service construction projects, as well as supplementary operating funds.
Dongfeng Group shares said that if the amount raised (after deducting the issuance fee) is not sufficient to meet the actual funds required for the fore mentioned purposes, the company will resolve the funding gap through self-financing.
According to public information, Dongfeng Group shares are wholly owned subsidiaries of Dongfeng Motor Group Co., Ltd. (“Dongfeng Motor”). Dongfeng Group shares were listed on the Hong Kong Stock Exchange in December 2005.
Affected by the outbreak in the first quarter of this year, Dongfeng Group’s share operating income was 2,066 million yuan, down 33.72 percent from 3,117 million yuan in the same period last year.
Dongfeng Group sold 1.1445 million new cars in the first half of the year, down 16.73 percent from a year earlier.
In the high-end transformation, on the evening of July 17, Dongfeng Motor officially released the high-end brand “Yutu Automobile”. At the same time, the establishment of Yantu Automotive Technology Co., Ltd., the company for Dongfeng Group shares wholly-owned subsidiaries.
Yantu Automobile has formed a new management team, including Chief Executive Officer (CEO) and Chief Technology Officer (CTO) Lu Lu, Chief Brand Officer (CBO) Lei Xin, Chief Financial Officer (CFO) Shen Jun, Chief Operating Officer (COO) Jiang Weijun, and Huang Weijun, Senior Director of Brand Operations and Press Spokesperson for Yantu Automotive.
Yu Wei, a member of Dongfeng’s Standing Committee and deputy general manager, said that Yantu Automobile is “a strategic choice for us to promote Dongfeng’s brand with new organizations, new mechanisms and new models.” “
Yantu Automobile will hold a brand strategy launch on July 29 and launch the first concept car, while its mass-produced models will be available in July 2021.