Profit Drops Over 90%, Stock Price Rises Against the Trend, Dongfeng Motor Group's Sudden Trading Halt Sparks Speculation

On August 11, Dongfeng Motor Group Co., Ltd. (stock code: 0489.HK) suddenly announced a short trading halt before the market opened. Trading was suspended from 9:00 a.m. on August 11. As of the close on August 12, the stock had not yet resumed trading.

Notably, last Thursday (August 7), Dongfeng Motor Group issued a profit warning announcement: In the first half of 2025, Dongfeng Motor Group's net profit attributable to shareholders is expected to be between 0.3 billion and 0.7 billion yuan, a year-on-year decline of 90% to 95%.

Dongfeng Motor Group stated that the performance change during the period was mainly due to the continued decline in the joint venture brand market, leading to a significant year-on-year decrease in the volume and profit of the group's joint venture passenger car business. To cope with intense market competition, the group increased its investment in research and development, brand and channel development, and marketing in the independent business sector.

What is puzzling is that on the day the profit warning announcement was released, the company's stock price rose against the trend by 6.18%, and then increased by another 8.55% the following day, until trading was suspended on August 11. Recently, Dongfeng Motor Group's stock price has been continuously climbing, rising from a low of HKD 3.350 per share on June 23 to a high of HKD 6.300 per share on August 8.

This has triggered widespread speculation in the market. Members in the "stock forum" speculate that "Huawei and Lantu are cooperating for a backdoor listing," "Lantu is planning a spin-off IPO," "Could it really be privatization? Or the announcement of an A+H share issuance plan."

On August 12, Dongfeng Automobile Co., Ltd. (Stock Code: 600006), an A-share listed company, issued an announcement: On August 11, 2025, the controlling shareholder, Dongfeng Motor Group Co., Ltd., released a suspension announcement. According to the notice from Dongfeng Motor Group, the matters related to the suspension will not have a significant impact on the normal production and operation activities of the company.

But the forum members in the "stock forum" are still actively speaking, "Monster stock speculation?" "Could it be an investment guide?" "The fewer the words, the bigger the issue." "Merger and restructuring."

Since the partnership with Changan Automobile fell through, Dongfeng Motor has been taking rapid actions. It swiftly established Yipai Technology, assembling a team covering core functions across the entire value chain—including product planning, research and development, manufacturing, procurement, quality, sales, and service—in just six days. Within only two weeks of its founding, the goals and strategies for the second half of the year’s critical campaign have already been clearly laid out...

While attention continues to rise, the market has paid little attention to Dongfeng Motor’s sales report, which was only released on August 11. In July, Dongfeng Motor’s passenger vehicle sales surged by 45.7% year-on-year; however, cumulative sales for the first seven months still declined by 11.5%. Specifically, in July, eπ Technology sold 27,777 units, up 92.1%; Voyah Automobile sold 10,560 units, up 91.5%; Dongfeng Nissan sold 53,565 units, up 41.7%; Dongfeng Honda sold 24,383 units, up 71.4%; and Dongfeng Peugeot-Citroën sold 3,418 units, down 35.0%.