Image source: VOYAH official website
TMTPOST -- Shares of Dongfeng Motor Group jumped after the Chinese automaker announced plans to privatize and list its premium smart electric vehicle brand, Voyah, in Hong Kong through an introduction listing aimed at accelerating its electrification strategy.
The transaction, structured as a combination of equity distribution and merger by absorption, values the deal at HK$10.85 per share—HK$6.68 in cash and HK$4.17 in Voyah equity.
If successful, Voyah Auto would join the ranks of high-profile Chinese electric vehicle companies listed in Hong Kong, including NIO, XPeng, Li Auto, Leapmotor, Seres, and Xiaomi. Analysts note the move reflects a broader trend of state-owned automakers using capital-market innovations to reposition brands and unlock value amid the electric vehicle boom.
Dongfeng Motor surged 56% to US$ 1.20 per share as of 10:55 a.m. in Hong Kong, lifting its market capitalization to roughly US$ 9.9 billion.
The Wuhan-based parent company said on August 22 that it will distribute its nearly 80% stake in Voyah to shareholders on a pro-rata basis, along with a cash consideration. Shareholders are set to receive about US$ 1.39 per share, comprising US$ 0.86 in cash and equity in Voyah worth US$ 0.53 per share.
The deal represents a premium of 82% compared with Dongfeng Motor’s closing price of US$ 0.74 per share on August 8, when trading was suspended before reopening on Monday.
In recent years, Dongfeng Motor’s valuation has remained subdued amid industry transformation challenges, with market capitalization lagging behind net assets. As of July 31, its market cap stood at US$ 5.0 billion, with a price-to-book ratio of just 0.25, reducing the effectiveness of its shares as a financing tool.
For years, Dongfeng has struggled with a depressed market valuation in Hong Kong. As of July 31, 2025, its market capitalization stood at HK$39.12 billion, with shares closing at HK$4.74 and a price-to-book ratio of just 0.24—well below its net asset value. The undervaluation has hindered the group’s ability to raise funds through its H-share platform, limiting financing options.
In contrast, Voyah Auto has experienced robust growth. The high-end electric brand sold 85,697 vehicles in 2024, a 70% increase year-over-year. In the first seven months of 2025, cumulative sales hit 68,263 units, up 88% from the same period in 2024. Financials indicate Voyah is nearing profitability: after multi-year net losses, the company posted a post-tax loss of just 18 million yuan in 2024 and achieved a quarterly profit in Q4.
Voyah CEO Lu Fang emphasized the brand’s strong positioning in China’s premium EV market, noting that per-vehicle gross margins are competitive even among state-owned enterprises. “We are working hard to achieve full-year profitability this year,” he said.
An introduction listing allows existing shares to be listed without raising new funds. For Voyah Auto, this approach boosts liquidity, elevates brand visibility, and opens doors for international expansion. Minority shareholders benefit from a dual-option structure: cash consideration provides immediate returns, while equity allocation allows participation in potential upside.
Analysts say the move could help Dongfeng break free from its historically low valuation, while simplifying the group’s complex asset mix. “This is a strategic step to unlock value for both the parent company and Voyah Auto,” one market strategist said.
Dongfeng’s delisting underscores the pressures traditional automakers face amid electrification. In H1 2025, the group sold roughly 823,900 vehicles, down 14.7% year-over-year, but revenue rose 6.6% to 54.533 billion yuan, with gross profit up 28% to 7.599 billion yuan. The data reflect a shift from volume-focused growth to efficiency and quality, as resources are increasingly concentrated on new energy vehicles.
The dual move—Voyah’s IPO and Dongfeng’s privatization—also leverages mixed-ownership reforms. Voyah’s employee shareholding platform, covering around 300 core staff and holding a 10.34% stake, is a key innovation aimed at incentivizing talent while avoiding the controversy of state asset loss. Analysts say this model could serve as a blueprint for other state-owned automakers navigating the EV transition.
Despite positive momentum, Voyah faces hurdles. Its 2025 sales target is 200,000 units, but first-half sales of 56,100 units cover just 28% of the goal. The brand also depends heavily on the Voyah Dreamer, which accounts for over 60% of sales, limiting market reach. In July 2025, the Dreamer represented 59.8% of total monthly sales.
To address these challenges, Voyah is accelerating product launches, including the Voyah FREE+ and the all-new Zhiyin. The FREE+ reportedly secured 11,583 firm orders within 15 minutes of launch, signaling strong market demand.
Listing independently on the Hong Kong exchange subjects Voyah to international investor scrutiny. Its valuation will now hinge on product competitiveness, profitability outlook, and brand strength rather than Dongfeng’s overall performance, placing higher demands on operational efficiency and financial discipline.
The so-called “swap the cage for a new bird” strategy reflects a broader effort to reposition Dongfeng as a technology-driven automaker. Success will be measured not by short-term stock movements, but by sustainable profitability, market share growth, and the parent company’s ability to focus resources on new energy vehicles.
Industry observers see the IPO and privatization as a potential case study for traditional automakers seeking to unlock value in the rapidly evolving EV landscape. By combining innovative financing, mixed-ownership structures, and a clear focus on high-margin segments, Dongfeng aims to chart a course for long-term competitiveness in China’s electrifying automotive market.
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