by CHEN Xiaoton
Shares of Dongfeng Motor Group Co. jumped as much as 70 per cent before paring gains to trade 55.3 per cent higher at HK$9.27 on Monday, giving the company a market value of HK$76.5 billion. The stock had been suspended since August 11.
The Wuhan-based carmaker announced late last week that it will privatize and delist its Hong Kong unit through a two-step process tied to the separate listing of Voyah, its high-end electric vehicle brand. Voyah will debut on the Hong Kong Stock Exchange by way of introduction.
Under the plan, Dongfeng Motor Group will first distribute its 79.7 per cent stake in Voyah to existing shareholders. The EV maker will then list independently. In the second step, Dongfeng's domestic investment arm will acquire all outstanding shares of Dongfeng Motor Group at HK$10.85 apiece, consisting of HK$6.68 in cash and HK$4.17 worth of Voyah equity.
Dongfeng said the move comes as its Hong Kong listing has "largely lost its financing function" after years of weak valuation. As of July 31, the company's market capitalization was HK$39.1 billion, just a quarter of its book value.
In the first half of 2025, Dongfeng sold 823,900 vehicles, down 14.7 per cent year on year, though revenue rose 6.6 per cent to 54.5 billion yuan. Net profit attributable to shareholders slumped 92 per cent to 55 million yuan.
Voyah, founded in 2020 to spearhead Dongfeng's EV ambitions, has been rapidly expanding. It delivered 85,697 vehicles in 2024, up 70 per cent, and 68,263 in the first seven months of this year, up 88 per cent. Losses have narrowed sharply: from 1.98 billion yuan before tax in 2023 to just 243 million yuan in 2024, with a brief profit recorded in the fourth quarter.
Dongfeng and its asset management arm injected fresh capital into Voyah in July, leaving the parent with nearly 80 per cent of equity. The company said the spin-off will give investors direct exposure to its fastest-growing business while allowing it to restructure its underperforming Hong Kong platform.
