Ask AI · How can state-owned enterprise mixed reform funds and bank AIC support Lantu’s path to listing?

“Science and Technology Innovation Board Daily” March 19, Reporter Yu Shiqi Today, with the sound of a gong, Lantu Automobile (07489.HK) officially listed on the main board of the Hong Kong Stock Exchange.

This is a unique listing. Lantu did not raise funds through a traditional IPO but adopted the method of “introduction listing,” not issuing new shares, not immediately financing, only listing existing shares for trading.

Behind this is a carefully planned “cage exchanging birds” drama by its parent company Dongfeng Motor Group Co., Ltd. (00489.HK): Dongfeng Group completed privatization and delisting, bringing its best new energy assets “to the forefront.”

From a high-end brand within Dongfeng to now an independent listing, Lantu has become the first automotive central state-owned enterprise subsidiary to land on the Hong Kong stock market. Behind it is a large “circle of friends” composed of industrial capital and local state-owned assets.

State-owned enterprise mixed reform funds and three major banks’ AIC “jointly support”

Before the listing, Lantu only had one round of external financing, but gathered a quite luxurious lineup of investors.

Turning back the clock to 2022, that was a critical juncture for Lantu’s development.

According to the prospectus, at that time Lantu completed the largest first round of financing in China’s new energy vehicle industry to date, with a total amount close to 5 billion yuan. In this round of financing, a capital puzzle composed of “financial central enterprises + local state-owned assets + industrial capital” surfaced.

First is the “national team,” the China State-Owned Enterprise Mixed Ownership Reform Fund invested 1 billion yuan. Following closely is the intensive support from the “banking sector”: Bank of China Financial Asset Investment Co., Ltd. invested 900 million yuan, Industrial Bank Financial Asset Investment Co., Ltd. invested 500 million yuan, and Agricultural Bank Financial Asset Investment Co., Ltd. invested 300 million yuan. The three major state-owned banks’ asset investment platforms acted simultaneously, marking a first in the new automotive forces.

As Dongfeng’s base, Wuhan Economic and Technological Development Zone (“China’s Auto Valley”) also voted with real money, with the Wuhan Economic Development Industrial Investment Fund and Hubei High-Quality Development Industrial Investment Fund providing a total of 500 million yuan in investment.

Additionally, a wholly-owned subsidiary of Xinwandai, Qianhai Hongsheng, and Ganfeng Lithium also participated in this round of financing. However, in the equity changes in July 2025, Ganfeng Lithium chose to exit, with Dongfeng Asset Management Co., Ltd. taking over.

Returning to 2022, at that time, Lantu attracted the most attention among the central state-owned enterprises in the new energy camp.

In 2023, then-CFO of Lantu Automobile, Shen Jun, disclosed the listing plan: if monthly sales could reach around 10,000 units, it would meet the conditions for listing. According to the plan at that time, the market generally expected Lantu to complete its IPO around 2024, becoming the first central state-owned enterprise new energy brand to go public.

However, from the completion of financing in 2022, to the disclosure of the plan in 2023, and finally landing on the Hong Kong stock market in March 2026, Lantu’s path to listing took nearly four years. During these four years, other central enterprises that once followed closely behind had launched fierce pursuits.

For example, Avita under Changan Automobile completed over 11 billion yuan in Series C financing in December 2024, funded by Changan Automobile, Yufu fund, Southern Asset fund, State Investment fund, and Jiaoyun Investment, with a valuation exceeding 30 billion yuan. In November 2025, Avita officially submitted its IPO application to the Hong Kong Stock Exchange, nearly simultaneously standing at the door of the Hong Kong Stock Exchange with Lantu.

Another factor influencing valuation premium is the slow progress in overseas markets. As of 2025, Lantu still derives about 90% of its revenue from the domestic market, with overseas revenue accounting for only around 10%. In the context of intensifying competition in the domestic new energy market, the overseas market is an important support for valuation premium, but Lantu’s globalization strategy remains in the “testing waters” phase.

Faced with the market’s cautious attitude, Lantu provided a solution in its prospectus: using the depth of its product matrix to mitigate the risk of relying on a single model. In 2026, Lantu plans to launch four new models, including Taishan Ultra, Taishan X8, FE, and Everest, all equipped with L3-level intelligent assisted driving hardware, attempting to expand its product line from the “lone star” of MPVs to a “full bloom” of SUVs and sedans. Meanwhile, the expansion into overseas markets is also accelerating, with plans to penetrate more regions such as Europe, the Middle East, and Central Asia.

The break on the first day of trading is just the starting point of Lantu’s journey in the capital market. For this “first stock of high-end new energy among central state-owned enterprises,” the real test lies in how to respond to all market questions about profit quality and business sustainability with continuous performance growth.

(Science and Technology Innovation Board Daily Reporter Yu Shiqi)