Revenue and Profitability - Revenue for the six months ended June 30, 2024, was RMB 51,145 million, an increase of 12.8% compared to RMB 45,640 million for the same period in 2023[2]. - The net profit attributable to equity holders of the parent company decreased to RMB 684 million, down 48% from RMB 1,314 million in the previous year[2]. - Basic and diluted earnings per share for the period were RMB 8.27, compared to RMB 15.30 in the same period last year[2]. - The company reported a pre-tax profit of RMB 129 million, down from RMB 308 million in the previous year, indicating a decline of 58%[2]. - The company reported a total profit of RMB 684 million for the period, with a total comprehensive income of RMB (1,059) million, reflecting a significant change in other comprehensive income[10]. - The company reported a pre-tax profit of RMB 684 million for the six months ended June 30, 2024, down from RMB 1,314 million in the same period of 2023, indicating a decline of 48.0%[36]. - For the first half of 2024, the group's net profit attributable to shareholders was approximately RMB 684 million, a decrease of about RMB 630 million compared to the same period last year, with a net profit margin of 1.3%, down from 2.9%[78]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 323,370 million, a decrease from RMB 336,430 million at the end of 2023[5]. - Non-current assets increased to RMB 156,419 million from RMB 154,794 million, indicating a slight growth in long-term investments[5]. - Total current liabilities amounted to RMB 131,984 million as of June 30, 2024, a decrease from RMB 137,340 million on December 31, 2023, representing a reduction of approximately 3.3%[7]. - Non-current liabilities totaled RMB 32,848 million, a decrease from RMB 38,374 million, reflecting a reduction of approximately 14.3%[8]. - The total equity attributable to equity holders of the parent company was RMB 152,354 million, down from RMB 153,883 million, representing a decrease of about 1.0%[8]. - The total assets minus current liabilities stood at RMB 191,386 million, down from RMB 199,090 million, indicating a decline of about 3.4%[7]. - Total liabilities as of June 30, 2024, were RMB 175,714 million, up from RMB 171,069 million as of December 31, 2023[20]. - Total assets as of June 30, 2024, were approximately RMB 323.37 billion, a decrease of about RMB 13.06 billion or 3.9% from the end of the previous year[79]. - Total liabilities were approximately RMB 164.83 billion, a decrease of about RMB 10.88 billion or 6.19% from the end of the previous year[81]. Cash Flow - For the six months ended June 30, 2024, the net cash flow from operating activities was RMB (494) million, a significant decrease from RMB 7,413 million in the same period of 2023[7]. - The net cash flow used in investing activities was RMB (8,254) million, compared to RMB 3,573 million generated in the same period of 2023[7]. - The cash flow from financing activities resulted in a net outflow of RMB (3,124) million, contrasting with a net inflow of RMB 335 million in the previous year[7]. - The company experienced a net decrease in cash and cash equivalents of RMB (11,872) million, compared to a decrease of RMB (3,505) million in the previous year[7]. - The group's cash and cash equivalents net outflow was RMB 11.87 billion for the first half of 2024, a decrease of RMB 8.37 billion compared to the same period in 2023[83]. Sales and Market Performance - The group sold approximately 966,100 vehicles in the first half of 2024, a year-on-year increase of 2.2%, with self-owned passenger vehicles sales rising by 19.9%[51]. - Commercial vehicle sales contributed RMB 26,066 million, while passenger vehicle sales increased significantly to RMB 21,492 million from RMB 15,750 million year-on-year[26]. - Dongfeng's commercial vehicle sales reached 191,355 units, with a market share of 9.3%, while truck sales accounted for 183,384 units, achieving an 11.9% market share[57]. - The group's new energy vehicle sales reached 154,000 units, a year-on-year increase of 28.5%, with new energy vehicles accounting for 3.3 percentage points more of total sales[61]. - In the first half of 2024, the automotive industry sales grew by 6.1%, with new energy vehicles and overseas exports being the main growth drivers, increasing by 32% and 30.5% respectively[50]. Research and Development - Research costs increased to RMB 2,205 million from RMB 2,001 million, showing a rise of 10.2%[31]. - The company is focusing on key technologies such as next-generation skateboard chassis, solid-state batteries, and hydrogen fuel cells, enhancing its R&D capabilities and establishing global innovation centers[54]. Strategic Initiatives - The company plans to accelerate the electrification transformation of its joint ventures, with initiatives like the "H+ Lingxi" dual-brand strategy for Dongfeng Honda and the "New Struggle 100 Action Plan" for Dongfeng Nissan[54]. - Dongfeng's strategic restructuring includes the establishment of dedicated operational committees for passenger vehicles, commercial vehicles, and parts, aimed at optimizing resource allocation and enhancing brand development[53]. Other Financial Metrics - The gross profit margin for self-owned passenger vehicles increased by 4.7 percentage points compared to the same period last year[51]. - The company's total liabilities and equity decreased by approximately 3.9% from the previous period, highlighting a trend of contraction in financial position[8]. - The share of profits and losses from joint ventures decreased to approximately RMB 753 million, down about 46.3% year-on-year, influenced by declining market share in the non-luxury joint venture segment[75]. - The group’s automotive finance business revenue was approximately RMB 2.865 billion, a decrease of about 16.57% compared to the previous year[65].

Vehicle Sales Performance - Total vehicle sales in 2023 were approximately 2.0882 million units, a decrease of 15.3% year-on-year[6] - Sales of self-owned brand passenger vehicles were 347,400 units, down 30.2% year-on-year[6] - Commercial vehicle sales reached approximately 343,400 units, an increase of 10.3% year-on-year[6] - New energy vehicle sales accounted for approximately 348,000 units, representing a 2.7 percentage point increase in the company's total sales[6] - The high-end brand Lantu achieved sales of over 50,000 units, a year-on-year increase of 159.1%[6] - Overseas export sales reached 169,100 units, a year-on-year increase of 14.3%, setting a historical record[6] - Sales from January to February 2024 were 331,000 units, a year-on-year increase of 26.2%[8] - Dongfeng Motor Group aims to sell 2.7 million vehicles in 2024, a 29% increase from 2023, with passenger vehicle sales target at 2.28 million units (30% growth) and commercial vehicle sales target at 420,000 units (22% growth)[17] Financial Performance - The company achieved sales revenue of 99.315 billion yuan, with a net loss attributable to shareholders of 3.996 billion yuan[6] - The company's cash reserves exceeded 100 billion yuan by the end of 2023[6] - The asset-liability ratio was 51.7%, with operating cash flow increasing by 1.991 billion yuan year-on-year[6] - Total revenue for 2023 was RMB 99.315 billion, an increase of 7.2% year-on-year, primarily driven by Dongfeng Commercial Vehicle, Dongfeng Liuzhou Motor, and Voyah[78] - Commercial vehicle revenue increased by 28.1% year-on-year to RMB 49.538 billion, while passenger vehicle revenue decreased by 8.96% to RMB 42.543 billion[80][81] - Automotive financial business revenue decreased by 4.5% year-on-year to RMB 6.151 billion due to reduced loan scale and interest rates[82] - Gross profit increased by 7.2% year-on-year to RMB 9.466 billion, with a gross margin of 9.5%, driven by improved profitability in self-owned passenger vehicles and NEV businesses[83] - Shareholder attributable loss was RMB 39.96 billion in 2023, compared to a profit of RMB 102.65 billion in 2022, with a net profit margin of -4.0% and a return on equity of -2.6%[93] Production Capacity and R&D - Dongfeng Motor Group's total vehicle production capacity reached 3.98 million units by the end of 2023, an increase of 140,000 units compared to 2022, with passenger vehicle capacity at 3.36 million units and commercial vehicle capacity at 620,000 units[13] - The company's capital expenditure in 2023 was RMB 12.487 billion, a 32% increase year-over-year, driven by investments in new energy vehicle projects and R&D[16] - The company produced and sold 34 new energy passenger vehicle models and 9 new energy commercial vehicle models by the end of 2023[12] - The company's R&D expenditure and intangible asset purchases in 2023 amounted to RMB 3.711 billion, while fixed assets and other expenditures totaled RMB 8.776 billion[16] Market and Industry Trends - China's GDP grew by 5.2% year-on-year in 2023, with total vehicle production and sales reaching 30.16 million and 30.09 million units, up 11.6% and 12.0% respectively, setting a new historical high[76] - New energy vehicle (NEV) production and sales reached 9.587 million and 9.495 million units, up 35.8% and 37.9% respectively, with a market share of 31.6%, an increase of 5.9 percentage points year-on-year[76] - The company's total sales in 2023 were approximately 2.0882 million units, a year-on-year decrease of 15.3%, with sales revenue of RMB 99.315 billion and a gross margin of 9.5%[77] - Commercial vehicle sales increased by 10.3% year-on-year to 343,400 units, driven by macroeconomic recovery and favorable policies[77] - NEV sales reached 348,000 units, accounting for 2.7 percentage points more of the company's total sales, with the high-end brand Voyah achieving sales of 50,000 units, up 159.1% year-on-year[77] Corporate Governance and Leadership - Yang Qing, Executive Director, Chairman, and President, has extensive experience in the automotive industry, having held various leadership roles since 1988[100] - You Zheng, Executive Director and Vice President, holds a Master's in Business Administration and has significant experience in product planning and project management[101] - Zong Qingsheng, Independent Non-Executive Director, has a strong background in international business and investment management, with over 30 years of experience[102] - Leung Wai Lap, Independent Non-Executive Director, is a seasoned accountant with extensive experience in corporate restructuring and IPOs[103] - Hu Yiguang, Independent Non-Executive Director, is a senior partner at a leading law firm and has served as a legal advisor to major state-owned enterprises[104] - He Wei, Chairman of the Supervisory Board, has a Master's in Business Administration and extensive experience in corporate governance and human resources[105] - Jin Jun, Employee Supervisor, has a strong background in mechanical engineering and has held various leadership roles within the company[106] - Bao Hongxiang, Supervisor, has a Master's in Business Administration and extensive experience in financial oversight and auditing[107] - Feng Changjun, Vice President, has extensive experience in finance and management, having served in various leadership roles since 2001[108] - Li Jun, Board Secretary, has a strong background in automotive industry management, with roles at Dongfeng Motor Corporation and Shenlong Automobile[109] - Liao Xianzhi, Joint Company Secretary, has over 26 years of experience in accounting, financial management, and operations within the company[110] - Yuan Yingxin, Joint Company Secretary, brings over 25 years of corporate service experience, specializing in providing services to listed companies and multinational corporations[111] Financial Statements and Audits - The company's financial statements for 2023 were prepared in compliance with listing rules, company regulations, and international accounting standards, with no issues found in the financial management system[116] - The company's related-party transactions were conducted at fair market prices and conditions, with no harm to the company or shareholder interests[116] - The company's consolidated financial statements for 2023 were prepared in accordance with International Financial Reporting Standards (IFRS) and reflect a true and fair view of the financial position and performance[173] - The company's financial statements disclosed warranty provisions in detail, including accounting estimates, judgments, and related notes[176] - The company recorded an impairment provision of RMB 318 million for property, plant, and equipment (PP&E) and intangible assets for the year ended December 31, 2023[177] - The carrying value of PP&E and intangible assets as of December 31, 2023, was RMB 34,952 million[177] - The domestic automotive market's intense competition led to a decline in total sales and losses, resulting in impairment indicators for PP&E and intangible assets[177] - The company estimated the recoverable amount based on the value in use of cash-generating units, involving future cash flow projections and discount rate assumptions[177] - The impairment assessment is considered a key audit matter due to the sensitivity of assumptions to future market or economic conditions[177] Shareholder and Investor Relations - The company's controlling shareholder, Dongfeng Motor Group Co., Ltd., holds approximately 72.6% of the company's shares, with the remaining 27.4% held by public shareholders[121] - The company ensures equal treatment of all shareholders and protects their legal rights, with strict adherence to legal requirements for shareholder meetings[122] - Shareholders holding 10% or more of voting shares can request the board to convene an extraordinary general meeting or class meeting, and can convene the meeting themselves if the board fails to do so within 30 days[122] - Shareholders holding 5% or more of voting shares can propose new resolutions at the annual general meeting[123] - The company actively communicates with investors through analyst meetings, press conferences, non-deal roadshows, and reverse roadshows[124] - The company discloses monthly securities transaction reports as required by the Hong Kong Stock Exchange and quarterly reports for its ultra-short-term financing bonds as required by the China Interbank Market Dealers Association[124] Risk Management and Internal Controls - The company has established a comprehensive risk management and internal control system, including financial, operational, and compliance controls[167] - The company conducted a self-evaluation of internal control effectiveness, covering key areas such as safety management, quality control, and financial management[168] - No major risk events occurred during the reporting period, and the company focused on integrating risk management with business operations[168] - The internal audit function emphasized communication with external auditors and focused on decision-making processes, accounting information quality, and economic responsibility[168] - The Audit and Risk Management Committee, composed entirely of independent non-executive directors, is responsible for reviewing financial reports and overseeing external auditors[154] - The Audit and Risk Management Committee held three meetings in 2023, reviewing key matters including the 2022 financial status report and the 2023 interim financial report[156] - The company's Audit and Risk Management Committee is responsible for evaluating and determining the nature and extent of risks the company is willing to accept in achieving its strategic objectives[155] - The Audit and Risk Management Committee ensures the internal audit function has sufficient resources and appropriate status within the company[155] - The Audit and Risk Management Committee reviews the company's financial controls, risk management, and internal control systems[155] - The Audit and Risk Management Committee ensures fair and independent investigation of concerns raised by employees or other stakeholders regarding financial reporting or internal controls[155] - The Audit and Risk Management Committee coordinates communication between internal and external auditors to ensure their work is aligned[155] Corporate Social Responsibility and Sustainability - The company's total donations for 2023 amounted to approximately RMB 11 million[22] - The company emphasizes the importance of maintaining a balance between shareholder, employee, and societal interests while focusing on environmental protection and public welfare[170] - Female employees account for approximately 18.22% of the total workforce, reflecting the company's ongoing efforts to achieve gender diversity[149] Joint Ventures and Partnerships - The company received a total of approximately RMB 2.349 billion in dividends from its joint ventures in 2023[19] - The company's joint ventures have no specific dividend policy, but dividends are typically declared when distributable profits are available[19] - Joint ventures and their subsidiaries, joint ventures, and associated enterprises of Dongfeng Motor Group purchased auto parts and production equipment from joint venture partners, with a total payment of RMB 43.196 billion as of December 31, 2023[70] - Dongfeng Honda Auto Parts Co., Ltd. continues to sell auto parts to Honda Trading (China) Co., Ltd. and Honda Motor (China) Investment Co., Ltd. as of December 31, 2023[71] - Dongfeng Honda Engine Co., Ltd. sold engines and related auto parts to GAC Honda Automobile Co., Ltd. for a total consideration of RMB 118 million in 2023[73] - Joint ventures and their subsidiaries paid a total of RMB 4.44 billion for technology licenses and technical support to their joint venture partners as of December 31, 2023[75] - The pricing principle for technology licenses and technical support between joint ventures and their partners is based on fair compensation for R&D costs, with costs evenly amortized over the operating period[75] - GAC Honda Automobile Co., Ltd. is required to purchase engines and related auto parts exclusively from Dongfeng Honda Engine Co., Ltd. during the joint venture period[72] - The investment return ratio for GAC Honda Automobile Co., Ltd. and Dongfeng Honda Engine Co., Ltd. is maintained based on their initial investment amounts of USD 139.94 million and USD 60.06 million, respectively[72] - Technology license and technical support agreements are negotiated under fair commercial terms and are governed by umbrella agreements[74] - Dongfeng Honda Engine Co., Ltd. was established to manufacture engines and related auto parts for GAC Honda Automobile Co., Ltd., a major joint venture of Honda in China[72] - The sales of auto parts by Dongfeng Honda Auto Parts Co., Ltd. to Honda Trading (China) Co., Ltd. are considered continuous connected transactions[71] - The terms for technology licenses and technical support are determined based on the expected lifespan of the vehicle models[74] Financial Transactions and Agreements - The company's total share capital as of December 31, 2023, was RMB 8,302,252,000, divided into 8,302,252,000 ordinary shares with a par value of RMB 1 each[22] - The company repurchased a total of 313.092 million H shares on the Hong Kong Stock Exchange in 2023[23] - The company's top five customers accounted for no more than 30% of its total revenue in 2023[22] - The company's H share repurchase program was authorized at the annual general meeting on June 20, 2023, to maintain investment value and market reputation[23] - The company's total reserves and equity changes for 2023 are detailed in the audited financial statements[21] - The company's largest shareholder, Dongfeng Motor Group Co., Ltd., holds 100% of the domestic shares and 10.10% of the H shares[26] - The company's board recommended no profit distribution for 2023, subject to approval at the annual general meeting on June 21, 2024[21] - The company has a total of 112,706 full-time employees as of December 31, 2023, with manufacturing workers accounting for 58.07% (65,475 employees) and engineering technicians making up 16.56% (18,667 employees)[36] - The company's five highest-paid individuals are detailed in the audited financial statements, with specific figures provided in Note 9[35] - The company's public shareholders hold more than 25% of the total issued share capital as of the annual report date[39] - The company has a trademark licensing agreement with Dongfeng Motor Group Co., Ltd., which allows the use of certain trademarks for product sales and commercial activities, with the agreement automatically renewing every ten years[40] - The company has made contributions to social security funds, including basic pension, supplementary pension, medical insurance, unemployment insurance, and housing provident funds, through accounts under Dongfeng Motor Group Co., Ltd.[42] - The annual transaction ceiling for automotive parts sales to Dongfeng Motor Group Co., Ltd. and its subsidiaries in 2023 is approximately RMB 1.5 billion, with actual payments amounting to RMB 351 million by the end of 2023[44] - The annual transaction ceiling for automotive parts procurement from Dongfeng Motor Group Co., Ltd. and its subsidiaries in 2023 is approximately RMB 580 million, with actual payments amounting to RMB 106 million by the end of 2023[46] - The annual transaction ceiling for logistics services from Dongfeng Motor Group Co., Ltd. and its subsidiaries in 2023 is approximately RMB 8 billion, with actual payments amounting to RMB 5.375 billion by the end of 2023[48] - The annual transaction ceiling for automotive inspection services from Dongfeng Motor Group Co., Ltd. and its subsidiaries in 2023 is approximately RMB 1 billion, with actual payments amounting to RMB 572 million by the end of 2023[50] - Dongfeng Motor Group has set an annual loan limit of RMB 1.5 billion for Dongfeng Motor Group Co., Ltd. and its subsidiaries for 2023[52] - As of December 31, 2023, the loan balance from Dongfeng Motor Group Co., Ltd. and its subsidiaries to Dongfeng Motor Group was approximately RMB 0[52] - The maximum deposit amount for Dongfeng Motor Group in Dongfeng Nissan Auto Finance Co., Ltd. for 2023 is set at RMB 3.0 billion[54] - As of December 31, 2023, the deposit balance of Dongfeng Motor Group in Dongfeng Nissan Auto Finance Co., Ltd. was approximately RMB 0[54] - The lease agreement between Dongfeng Motor Group and Dongfeng Motor Group Co., Ltd. has a term of three years, from January 4, 2023, to December 31, 2025[55] - The rental payment under the lease agreement is to be made semi-annually, with a penalty rate of 5% per day for late payments[55] - The net value of the right-of-use assets from leasing by Dongfeng Motor Group to Dongfeng Motor Group Co., Ltd. for 2023 is capped at RMB 1.5 billion[56] - As of December 31, 2023, the net value of the right-of-use assets from leasing by Dongfeng Motor Group (excluding Dongfeng Motor Co., Ltd.) to Dongfeng Motor Group Co., Ltd. was RMB 1.027 billion[56] - The net value of the right-of-use assets generated from the land lease between Dongfeng Motor Co., Ltd. and Dongfeng Motor Group Co., Ltd. is RMB 485 million as of December 31, 2023[57] - The total amount paid by Dongfeng Motor Group to Dongfeng Hongtai for mutual procurement of vehicles and auto parts is RMB 2.272 billion and RMB 383 million respectively as of December 31, 2023[59] - The annual upper limit for vehicle sales transactions between Dongfeng Motor Group and Dongfeng Nissan Finance Lease Co., Ltd. is RMB 1.00 billion for 2023, with actual purchases amounting to RMB 0.00 billion as of December 31, 2023[61] - The annual upper limit for auto parts procurement from Dongfeng Motor Group Co., Ltd. and its subsidiaries is RMB 100 million for 2023, with actual payments amounting to RMB 41.223 million as of December 31, 2023[63] - Dongfeng Motor Group and its subsidiaries provided entrusted loans to Dongfeng Nissan Finance Leasing Co., Ltd. with an annual limit of RMB 2.8 billion, but the actual amount provided as of December 31, 2023, was RMB 0.00 billion[65] - Dongfeng Motor Group signed a total vehicle and chassis sales agreement with Dongfeng Motor Group Co., Ltd., with an annual transaction limit of RMB 1.5 billion for 202

Financial Performance - Dongfeng Motor Group reported a revenue of RMB 99,315 million for the year ended December 31, 2023, representing an increase of 7.1% compared to RMB 92,663 million in 2022[4]. - The gross profit for the year was RMB 9,466 million, up from RMB 8,827 million in the previous year, indicating a gross margin improvement[4]. - The net loss for the year was RMB 6,813 million, a significant decline from a profit of RMB 9,313 million in 2022, reflecting a year-over-year decrease of 173%[4]. - The company reported a net loss of RMB 3,996 million for the year 2023, compared to a profit of RMB 10,265 million in 2022, indicating a significant shift in financial performance[10]. - The total comprehensive income for the year 2023 was RMB 448 million, a stark contrast to the total comprehensive income of RMB 8,391 million in 2022, reflecting a decrease of approximately 94.7%[10]. - The company’s basic and diluted loss per share for the year was RMB (46.94) compared to earnings of RMB 119.14 per share in 2022[4]. - The group reported a total segment loss of RMB 7,343 million, with commercial vehicles and passenger vehicles incurring losses of RMB 4,107 million and RMB 6,565 million respectively[37]. - The group recorded a pre-tax loss of RMB 6,385 million for the year, with a net loss of RMB 6,813 million after tax expenses of RMB 428 million[37]. - The net loss attributable to shareholders was approximately RMB 3.996 billion, a decrease of about RMB 14.26 billion from a profit of RMB 10.265 billion in the previous year, resulting in a net profit margin of -4.0%[100]. Assets and Liabilities - The company's total assets as of December 31, 2023, were RMB 330,678 million, slightly up from RMB 330,036 million in 2022[9]. - The total liabilities increased to RMB 171,069 million from RMB 164,500 million, with interest-bearing borrowings rising to RMB 30,977 million[9]. - The company’s total assets as of December 31, 2023, were RMB 159,609 million, down from RMB 165,536 million in 2022, indicating a decrease of about 3.6%[10]. - The company’s cash and bank deposits rose to RMB 79,297 million, compared to RMB 68,046 million in the previous year, indicating improved liquidity[7]. - The group’s total assets at the end of 2023 were approximately RMB 330.68 billion, an increase of about RMB 642 million from RMB 330.04 billion at the end of the previous year[101]. - Total liabilities increased to approximately RMB 171.07 billion, up by about RMB 6.57 billion from RMB 164.50 billion at the end of the previous year, representing a growth of 4.0%[103]. Equity and Dividends - For the year ended December 31, 2023, the total equity attributable to equity holders of the parent was RMB 152,787 million, a decrease from RMB 155,852 million in 2022, representing a decline of approximately 2.0%[10]. - The company declared and paid a final dividend of RMB 2,560 million for the year 2023, compared to RMB 2,585 million in 2022, reflecting a slight decrease in dividend distribution[10]. - The group did not recommend a final dividend for the year ending December 31, 2023[108]. - The company did not declare any final dividend for 2023, contrasting with a dividend of RMB 2,577 million in 2022[51]. Operational Highlights - In 2023, the company sold approximately 2.0882 million vehicles, a year-on-year decrease of 15.3%[61]. - The sales of self-owned brand passenger vehicles reached 347,400 units, down 30.2% year-on-year, while commercial vehicle sales increased by 10.3% to approximately 343,400 units[61]. - The sales volume of new energy vehicles reached approximately 348,000 units, with a year-on-year increase, and the proportion of new energy vehicles in total sales increased by 2.7 percentage points[79]. - The high-end brand, Lantu, sold over 50,000 units, marking a year-on-year growth of 159.1%[61]. - The company achieved a historical high in export sales, reaching 169,100 units, a year-on-year increase of 14.3%[61]. - The company has established a complete brand layout, including luxury electric off-road brand Dongfeng Mengshi, which has sold over 1,000 units since its launch[62]. - The company expects to sell 2.7 million vehicles in 2024, representing a growth of approximately 29% compared to 2023[73]. - The company has 6,027 sales outlets covering all 31 provinces as of December 31, 2023[70]. Investment and Expenditures - Capital expenditures for the year totaled RMB 9,699 million, with RMB 5,963 million allocated to property, plant, and equipment[38]. - In 2023, Dongfeng Motor Group achieved actual capital expenditures of RMB 12.487 billion, a year-on-year increase of RMB 2.995 billion, or 32%[72]. - The company’s capital expenditures totaled RMB 4,168 million in 2023, with RMB 2,144 million allocated to passenger vehicles and RMB 839 million to commercial vehicles[41]. - The company’s research and development costs increased to RMB 4,571 million in 2023 from RMB 4,393 million in 2022, reflecting ongoing investment in innovation[44]. Market and Competitive Position - The company plans to focus on new product development and market expansion strategies to improve future performance[3]. - The company plans to strengthen its mid-term business goals and enhance its competitive position in the new energy vehicle market[64]. - The market share of new energy vehicles reached 31.6%, an increase of 5.9 percentage points compared to the previous year[76]. Accounting Standards and Compliance - The group has adopted new and revised standards effective from January 1, 2023, including IFRS 17 on insurance contracts and amendments to IAS 1, IAS 8, and IAS 12, which have no significant impact on the financial statements[2][20][22]. - The amendments to IAS 12 clarify the treatment of deferred tax assets and liabilities related to temporary differences arising from specific transactions, with no significant impact on the group's consolidated financial statements[22][23]. - The group has not yet applied the newly issued but not yet effective revised IFRS standards, intending to adopt them when they become applicable[25][29]. - The revisions to IFRS 10 and IAS 28 address inconsistencies in the treatment of asset transfers between investors and their associates or joint ventures, requiring full recognition of gains or losses when the transaction constitutes a business[29][30]. - The amendments to IFRS 16 clarify the requirements for measuring lease liabilities in sale and leaseback transactions, effective from January 1, 2024, with no significant expected impact on the group's financial statements[29][30].

Core Viewpoint - Dongfeng Group announced a share transfer agreement where Dongfeng Changxing will acquire 100% equity of Chuangge Financing Leasing Co., Ltd. from its controlling shareholder Dongfeng Motor Company for RMB 1.122 billion, enhancing its business structure and value chain [1]. Group 1 - The share transfer is set to be completed on January 29, 2024, after trading hours [1]. - Following the transfer, Chuangge Financing Leasing will become an indirect non-wholly-owned subsidiary of Dongfeng Changxing [1]. - The integration of the target company is expected to promote unified brand management and develop after-sales services such as insurance, maintenance, energy supply, financing, and used car sales [1]. Group 2 - The transaction aims to extend the value chain and facilitate high-quality development across the entire industry chain [1].

Sales Performance - In the first half of 2023, the company sold approximately 945,500 vehicles, a year-on-year decrease of 23.4%[3] - The sales of self-owned passenger vehicles reached 156,800 units, down 30.9% year-on-year[3] - The sales volume of new energy vehicles was approximately 119,600 units, accounting for an increase of 2.2 percentage points in the overall sales[3] - The overseas export business achieved a sales volume of 81,200 units, marking a year-on-year growth of 28.1%[3] - The high-end brand "Lantu" saw a sales increase of 118.5% year-on-year[3] - The company's passenger vehicle sales decreased by approximately 23.4% year-on-year to about 769,700 units, while commercial vehicle sales increased by approximately 0.7% to about 175,800 units[28] - The sales of new energy passenger vehicles were approximately 108,000 units, with a year-on-year decline of about 7.8%[28] Financial Performance - The company achieved a sales revenue of 45.677 billion yuan, with a net profit attributable to shareholders of 1.27 billion yuan, resulting in a net profit margin of 2.8%[3] - The company reported a strong performance in the commercial vehicle sector, particularly in trucks, which are crucial for its overall sales strategy[9] - The overall revenue for the first half of 2023 was approximately RMB 45.68 billion, an increase of approximately 2.9% from RMB 44.40 billion in the same period last year[29] - The company’s revenue from passenger vehicles was approximately RMB 16.11 billion, a decrease of approximately 19.1% compared to RMB 19.91 billion in the same period last year[30][31] - The commercial vehicle segment saw a revenue increase of approximately 22.7%, reaching about RMB 25.53 billion, compared to RMB 20.81 billion in the previous year[30][32] - The automotive finance segment reported a revenue of approximately RMB 3.11 billion, a decline of approximately 3.4% from RMB 3.22 billion in the same period last year[33] - The net profit attributable to shareholders for the first half of 2023 was approximately RMB 1.27 billion, a decrease of about RMB 4.23 billion or 76.9% compared to RMB 5.50 billion in the same period last year[46] Research and Development - The company’s R&D investment in new energy increased by 49.2% year-on-year, reflecting a strong commitment to technological advancement[3] - Research and development expenditure for the first half of 2023 was approximately RMB 3.46 billion, an increase of about RMB 0.39 billion or 12.62% compared to RMB 3.07 billion in the same period last year, with RMB 1.56 billion allocated to new energy research and development, an increase of 49.3%[42] Corporate Governance and Management - The company is implementing a significant management restructuring to enhance the integration of its self-owned passenger vehicle business[5] - Dongfeng Motor Group is committed to enhancing corporate governance and transparency, adhering to relevant regulations and guidelines[11] - The board of directors held three meetings in the first half of 2023 to discuss key matters including the 2023 investment plan and financial reports[14] - The board of directors held meetings with a participation rate of 100% from several members, indicating strong engagement in governance[18] - The audit and risk management committee consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management[17] Assets and Liabilities - The company’s asset-liability ratio was 47.8%, a decrease of 2.0 percentage points compared to the previous year[3] - Total assets as of the first half of 2023 were approximately RMB 316.71 billion, a decrease of about RMB 13.33 billion or 4.0% from approximately RMB 330.04 billion at the end of the previous year[47] - Total liabilities as of June 30, 2023, were approximately RMB 151.475 billion, a decrease of about RMB 13.025 billion or 7.92% from the end of the previous year[48] - Total equity as of June 30, 2023, was RMB 165.236 billion, a decrease of RMB 0.3 billion or 0.18% from the end of the previous year, with equity attributable to shareholders increasing by RMB 0.752 billion[49] Cash Flow and Financing - Net cash outflow from operating activities was RMB 7.954 billion, primarily due to a decrease in loan issuance by the financial business, which increased cash flow by RMB 11.734 billion[50] - Net cash inflow from investment activities was RMB 4.107 billion, mainly from increased dividends received totaling RMB 7.312 billion[50] - Net cash inflow from financing activities was RMB 0.125 billion, reflecting an increase in bank borrowings of RMB 12.140 billion[51] - The company plans to issue new shares, not exceeding 20% of the existing domestic and H shares, to support its capital structure adjustments[15] Shareholder Information - The company did not recommend the distribution of an interim dividend for the six months ending June 30, 2023[21] - The majority of the shareholding is held by domestic shares, accounting for approximately 67.52% of the total issued shares[21] - The company’s share repurchase authorization was approved at the annual general meeting held on June 20, 2023, reflecting confidence in future development[25] - The company repurchased a total of 61,900,000 H shares during the six months ending June 30, 2023, with the highest purchase price being HKD 4.55 and the lowest being HKD 3.31[25] Market Outlook - The company anticipates continued economic recovery in the second half of 2023, driven by positive policy effects and strong consumer demand for automobiles[10] - Dongfeng Motor Group is focusing on the development of new energy vehicles and expanding its market presence, which is expected to contribute to stable growth in the automotive market[10] - The company is focusing on a "three-year action plan for transformation and upgrading" to accelerate its new energy strategy amid significant market challenges[28]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等 內容而引致之任何損失承擔任何責任。 DONGFENG MOTOR GROUP COMPANY LIMITED* 東風汽車集團股份有限公司 (於中華人民共和國註冊成立的股份有限公司) (股份代號: 489) 二零二三年中期業績公告 東風汽車集團股份有限公司(「本公司」)董事會(「董事會」)欣然宣佈本公司及其附屬公司 (「本集團」或「東風汽車集團」)截至二零二三年六月三十日止六個月的未經審計綜合業 績及二零二二年同期的比較數字。二零二三年中期財務資料已由本公司審計與風險管理委 員會審閱以及由本公司核數師，安永會計師事務所按照香港會計師公會頒佈的《香港審閱 準則》第2410號－「由實體的獨立核數師執行中期財務資料審閱」進行了審閱。 除非另有所指，本業績報告所陳述、討論有關業務，包括製造、研發、產銷量、市佔率、 投資、網路、員工、公司管治等，均全面包括集團本部、附屬公司、合營企業、聯營企業 (包括通過附屬公司、合營企業、聯營企業間接擁有股本權益的公 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概 不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的 任何損失承擔任何責任。 * DONGFENG MOTOR GROUP COMPANY LIMITED 東 風 汽 車 集 團 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：489） 有 關 截 至2022年12月31日 止 年 度 年 報 的 補 充 公 告 茲 提 述 於2023年4月28日 刊 發 的 東 風 汽 車 集 團 股 份 有 限 公 司（「本 公 司」， 連同其附屬公司統稱為「本集團」）截至2022年12月31日止年度的年報（「2022 年 年 報」）。除 另 有 界 定 者 外，本 公 告 所 用 詞 彙 與2022年 年 報 所 載 列 者 具 有相同涵義。 本公告乃為提供有關本集團金融服務業務的補充資料而作出。 金 融 服 務 業 務 本 集 團 的 金 融 服 務 業 務 乃 按 照 國 家 金 融 監 督 管 理 總 局 授 予 的 金 融 許 可 ...

Sales Performance - In 2022, Dongfeng Motor Group sold approximately 2.4645 million vehicles, a year-on-year decrease of 11.2%, maintaining its position among the top three in the industry[15]. - The sales of self-owned passenger vehicles reached 497,900 units, representing a year-on-year growth of 39.6%, exceeding the industry growth rate by 30.1 percentage points[15]. - The group's commercial vehicle sales were approximately 311,300 units, reflecting a year-on-year decline of 40.4% due to a prolonged downturn in the commercial vehicle market[15]. - Dongfeng's new energy vehicle sales reached about 346,100 units, a year-on-year increase of 115.5%, ranking fourth in the industry[15]. - The joint venture passenger vehicle business remained stable, achieving sales of 1.6553 million units, with Shenlong Company experiencing a sales increase of 24.5% year-on-year[15]. - The sales target for 2023 is set at 3 million vehicles, representing a year-on-year growth of 21.7%, with a specific target of 600,000 new energy vehicles, which is a 73% increase[49]. Financial Performance - The group's total revenue for the year was 92.663 billion yuan, with a net profit attributable to shareholders of 10.265 billion yuan, achieving a net profit margin of 11.1%, the best level in three years[17]. - The sales revenue for Dongfeng Motor Group in 2022 was RMB 92.663 billion, a decrease from RMB 113.168 billion in 2021[30]. - The total sales cost for the group was approximately RMB 83.836 billion, a decrease of about 15.3% from RMB 98.929 billion in the previous year[189]. - The overall gross profit margin for the group was approximately 9.5%, with a total gross profit of about RMB 8.827 billion, down 38.0% from RMB 14.239 billion in the previous year[189]. - The total other income for the group in 2022 was approximately RMB 6.031 billion, an increase of about RMB 0.951 billion compared to RMB 5.08 billion in the same period last year[190]. - The company plans to increase dividend payouts, proposing a dividend of RMB 0.30 per share for the 2022 fiscal year[23]. Investment and R&D - In 2022, Dongfeng Motor Group completed investments totaling RMB 9.492 billion, focusing on core R&D capabilities, manufacturing upgrades, and new energy strategies[45]. - Research and development investment for the group in 2022 was RMB 8.078 billion, an increase of RMB 0.849 billion or 11.74% from RMB 7.229 billion in the same period last year[196]. - Investment in new energy research and development for the group in 2022 was RMB 3.784 billion, an increase of RMB 2.019 billion or 114.4% from RMB 1.765 billion in the same period last year[196]. Market Strategy and Transformation - Dongfeng Motor Group is accelerating its transformation into a technology-driven enterprise, focusing on the development of core technologies and deepening reforms[17]. - The company has established a strategic layout covering luxury, high-end, mid-range, and economy brands, including the launch of the "Mache" green power brand with a hybrid engine efficiency of 45.18%[18]. - Dongfeng aims to enhance its competitive edge and operational efficiency through ongoing reforms and strategic restructuring[20]. - The company is actively pursuing market expansion with autonomous driving products operating in over 30 cities nationwide[18]. - Dongfeng Motor Group is accelerating its electrification transformation in joint ventures, enhancing its competitiveness in the market[49]. Production Capacity - The company has a production capacity of approximately 3.85 million vehicles, with 620,000 for commercial vehicles and 3.23 million for passenger vehicles[41]. - Dongfeng Motor Group's total vehicle production capacity is expected to reach 3.87 million units by the end of 2023, driven by the construction of the Yunfeng factory and upgrades at Yijiete New Energy Company[42]. Corporate Governance and Shareholder Information - The largest shareholder, Dongfeng Motor Corporation, holds 5,760,388,000 domestic shares, representing 66.86% of the total issued shares[72]. - The company’s board of directors includes six members, with the chairman being Zhu Yan Feng and the president being Yang Qing[75]. - As of December 31, 2022, the total share capital of the company is RMB 8,616,120,000, divided into 8,616,120,000 ordinary shares, with a par value of RMB 1 per share[67]. Joint Ventures and Partnerships - The company’s joint ventures will continue to procure automotive parts and production equipment from their partners, with ongoing evaluations for competitive pricing and quality[153]. - The joint venture companies paid a total of RMB 49.549 billion for the procurement of automotive parts and production equipment from their partners as of December 31, 2022[158]. - The technology licensing and support agreements between the joint ventures and their foreign partners are governed by umbrella agreements, ensuring fair commercial terms[168].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之 任何損失承擔任何責任。 DONGFENG MOTOR GROUP COMPANY LIMITED* 東風汽車集團股份有限公司 (於中華人民共和國註冊成立的股份有限公司) (股份代號: 489) 二零二二年度業績公告 東風汽車集團股份有限公司(「本公司」)董事(「董事」)會欣然宣佈本公司及其附屬公司(「本 集團」或「東風汽車集團」)截至二零二二年十二月三十一日止年度的經審核綜合業績及二零二 一年的比較數字。 除非另有所指，本業績公告所陳述、討論有關業務，包括製造、研發、產銷量、市佔率、投資、 網絡、員工、激勵、社會責任、公司管治等，均全面包括集團本部、附屬公司、合營企業、聯營 企業(包括通過附屬公司、合營企業、聯營企業直接或間接擁有股本權益的公司)之資料。 東風汽車集團股份有限公司 綜合損益表 ...