Avatr "Rides the East Wind," Opens Hong Kong Stock Market Door in 5 months

Why did AI · Lantu Motors choose this introduction method for their listing?

From submitting the application to trading on the market, it took over five months for Lantu Motors to open the door to Hong Kong stocks.

On March 19, Lantu Motors, with stock code 7489.HK, officially listed on the Hong Kong Stock Exchange, becoming the “First High-End New Energy Vehicle State-Owned Enterprise Stock.” Lantu Motors Chairman and Party Secretary Lu Fang posted a message on social media that morning: “A new starting point, a new journey! Stay true to the original aspiration, keep the mission in mind! Continue to strive!” At market open on March 19, Lantu Motors’ stock price was HKD 7.5 per share.

The day before, on March 18, after market close, its parent company, Dongfeng Motor Corporation (referred to as “Dongfeng Group”), officially ended its 20-year listing on the Hong Kong Stock Exchange. This “subsidiary listing, parent delisting” capital operation was completed through a “dual listing and privatization” strategy, effectively swapping the old for the new, culminating in Lantu Motors’ listing.

For Lantu Motors, going public in Hong Kong was far from a simple capital listing; it marked the start of a new chapter: challenges such as achieving scalable sales remain urgent issues to solve.

On March 19, Lantu Motors officially listed on the HKEX. Photo by Beijing News Shell Finance Reporter Wang Linlin

Dongfeng’s “Swap and Rebirth,” Lantu Quickly Passes HKEX Review

Unlike the traditional IPO route of “issuing new shares and raising funds,” Lantu Motors adopted an introduction listing on the Main Board of the Hong Kong Stock Exchange. Its key feature is “listing only, no issuance of new shares, no fundraising,” meaning the company did not issue new shares during the listing process; instead, existing shareholders’ securities were simply traded on the exchange. Lantu Motors secured a listing seat and an independent capital operation platform in Hong Kong.

Looking back to August 22, 2025, Dongfeng Group announced after a 10-day trading halt that its subsidiary, Lantu Motors, would list in Hong Kong via an introduction method, while Dongfeng Group completed privatization and delisting simultaneously.

In October 2025, Lantu Motors submitted its listing application to HKEX. By February 11, 2026, it received preliminary approval from the Hong Kong Stock Exchange. In just four months, it completed multiple pre-approvals from departments including the National Development and Reform Commission, Ministry of Commerce, State Administration of Foreign Exchange, and China Securities Regulatory Commission.

In fact, Lantu Motors’ independent listing was anticipated early on. As far back as June 2021, Lu Fang announced that Lantu Motors would establish an independent legal entity, launch an employee stock ownership plan, and explicitly stated the intention to “extensively utilize capital market platforms.” Since then, Lantu Motors had publicly discussed the possibility of an IPO multiple times. During the Shanghai Auto Show in 2025, Lu Fang also indicated that the company’s listing was being actively promoted.

In July 2025, Dongfeng Group and Dongfeng Asset Management signed a capital increase agreement with Lantu Motors and other shareholders. Notably, original shareholders Ganfeng Lithium and Dongfeng Jianyin Industry Fund exited simultaneously, which was interpreted as industry capital retreat and a cleanup of non-core shareholders.

Entering the Profitability “Club”

Unlike other automakers going public, mature financial data is a core support for Lantu Motors’ HKEX listing.

The prospectus shows that in June 2021, Lantu Motors launched its first model, the Lantu FREE series, which now includes five new energy vehicle series. From 2023 to 2025, sales were 50,285, 80,116, and 150,169 units respectively.

Sales growth has improved Lantu Motors’ performance. Revenue from 2023 to 2025 was RMB 12.749 billion, RMB 19.36 billion, and RMB 34.86 billion. The company’s net losses have narrowed, with RMB 1.496 billion and RMB 90 million in 2023 and 2024, respectively, and it achieved quarterly profit in Q4 2024. In 2025, Lantu Motors turned profitable for the first time, with a net profit of RMB 1.02 billion.

Lu Fang has said that only positive profits can ensure the company’s sustainable development and continuous service to users. Companies cannot rely solely on “blood transfusions” or “bleeding” growth; only by returning to self-sustaining “hematopoiesis” and following industry development logic and laws can they survive better.

The prospectus also reveals the “other side of the coin.” In 2025, government subsidies for Lantu Motors reached RMB 1.08 billion, exceeding the company’s net profit attributable to shareholders that year. Although sales expenses as a percentage of revenue decreased year by year, they remained relatively high. From 2023 to 2025, sales expense ratios were 22.4%, 19.4%, and 15.3%, respectively, with high sales costs significantly diluting profits.

In the fiercely competitive new energy vehicle market, traditional automakers are accelerating their deployment. Both Lantu Motors and other “second-generation founders” and new forces face increased competition. Bai Wenxi, Chief Economist of China Capital Alliance, believes that listing in Hong Kong not only broadens financing channels but also leverages globalization strategies to enhance visibility. After going public independently, Lantu Motors will have a clear independent valuation, making it a more attractive investment target, with an expected shift in valuation logic.

Still Facing Challenges in Increasing Sales and Scale

Having successfully entered the capital market, Lantu Motors still faces multiple challenges.

In terms of sales scale, in 2025, Lantu Motors delivered 150,169 vehicles, still lagging behind leading brands. Its product lineup is relatively dependent on the Lantu Dreamer model. In 2025, the Dreamer sold 76,045 units, accounting for about 50.6% of total sales; the other models—Lantu FREE series, Taisan, Zukang, and Zhiyin—contributed less than half. Developing more growth points and balancing high-end positioning with large-scale expansion are key issues that need urgent solutions.

“Huawei” is a frequently mentioned term in Lantu Motors’ prospectus, indicating an intent to “fully embrace Huawei” to create more popular products. However, Lantu Motors is not exclusive to Huawei. Besides the “Five Realms,” Huawei has also partnered with GAC and Dongfeng to launch the Qijing and Yijing “two realms.” HarmonyOS cockpit solutions and Huawei’s HarmonyOS-based cockpit systems have been implemented in 14 automakers’ 33 mass-produced models. How to build differentiated core competitiveness remains a critical question for Lantu.

The prospectus also mentions expanding the product matrix and continuously creating popular models, planning to launch 1-3 new models annually, aiming to have 6-9 models by the end of 2026.

Listing in Hong Kong is not the end but the beginning. After this “coming of age” in the capital market, Lantu Motors’ real test has just begun. Under the spotlight of capital, it must not only prove its ability to “fly solo” but also turn its listing ambitions into a market “status” in this endless marathon.

Beijing News Shell Finance Reporter Wang Linlin

Editor: Yang Juanjuan

Proofreader: Zhao Lin