Lantu listed on the Hong Kong stock market, a new energy central enterprise entering the capital market

Ask AI · Why did Lantu’s stock price drop sharply on its debut?

Lantu has finally independently entered the capital market.

On March 19, Lantu Automotive officially landed on the Hong Kong Stock Exchange through a introduction listing, becoming the first high-end new energy vehicle enterprise that is a central state-owned enterprise to independently list on the Hong Kong stock market. On the same day, the company’s strategic model, the Taishan X8, made its first public appearance.

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On that day, Lantu opened at HKD 7.50 and ultimately closed at HKD 6.51, a decline of 13.2%, with a total market capitalization of HKD 23.957 billion.

Multiple analysts pointed out that the introduction listing model does not involve fundraising or a green shoe mechanism, leading to concentrated selling pressure on existing shares and a lack of support. The company has not yet been included in the Hong Kong Stock Connect, preventing mainland southbound funds from entering, further exacerbating volatility.

However, the value brought by this listing can be reflected in multiple dimensions. “The listing has opened up the company’s financing channels, providing strong resource security and room for imagination for future development,” Chairman Lu Fang emphasized during a group interview. The Dongfeng Group’s “cage exchange for birds” operation has also achieved the securitization of new energy assets, exploring market-oriented paths for the preservation and appreciation of state-owned assets.

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“After becoming a public company, Lantu needs to comply with stricter information disclosure requirements, which will force management to standardize,” Lu Fang clearly stated. “Dongfeng, as the parent company, will only control the overall strategic direction, while market competition strategies and medium- to long-term development will be decided autonomously by the board of directors and management committee.” This model of “central state-owned enterprise color + market-oriented operation” allows the company to respond more flexibly to market competition, which is key to its leading position in listing among central state-owned enterprises.

In terms of sales, Lantu has achieved scaled growth, with total sales reaching 150,200 units in 2025, a year-on-year increase of 87%. Among them, the core model Dreamer sold 76,000 units, accounting for 50.6% and becoming the absolute mainstay; FREE sold 44,000 units, accounting for 29.5%; and Zhiyin, Zhuiguang, and Taishan series contributed 20,400 units, 4,800 units, and 4,700 units respectively.

With the help of the high-margin model Lantu Dreamer, the company maintains a gross margin rate of over 20%. Lu Fang revealed that this achievement is due to “technological innovation, improved supply chain management, and collaboration with partners, with an internal emphasis on the working principles of ‘user, efficiency, goal, result’; the stability of the gross margin is a direct reflection of efficiency.”

The global layout also gains new momentum from the listing.

Currently, Lantu has established stores in over 40 countries and regions, proposing the “6655” overseas strategy with a goal of achieving 500,000 units in overseas sales. “Moving from the Yangtze River to Hong Kong is an important step in globalization; the Hong Kong capital market allows more global investors to recognize Lantu and lends support for overseas expansion,” Lu Fang added.

Behind the opportunities, Lantu faces prominent challenges. In terms of profitability, despite a year-on-year sales increase of 87% in 2025, the net profit after deduction remains negative, with a sales expense ratio of 15.3% being high, making channel and marketing cost control a challenge. Lu Fang admitted, “Maintaining a gross margin rate of over 20% is not easy; it requires technological innovation, management improvement, and consensus among all employees. We must adhere to self-sustaining growth and reject bloodletting management.”

Industry competition is also intensifying. In the high-end market, companies like Li Auto and Xpeng have formed mature product matrices, and the Taishan X8 entering the 8-series SUV market faces strong competitors such as the Aito M8 and Li L8. Huawei’s increased investment in the MPV sector also impacts the core product Dreamer. In response, Lu Fang stated, “We are not afraid of competition; a truly good car requires time accumulation and capability sedimentation. Lantu’s vehicle foundation, safety performance, and integration of intelligence is our core competitiveness,” adding that “the competition with Huawei is not a simple rivalry, but a mutual promotion of the implementation of China’s new energy technology, with over 300 million fuel vehicles still waiting to be replaced, indicating a broad market space.”

Sales pressure cannot be ignored either. Although monthly sales broke through 20,000 units in the second half of last year, a stable scale effect has not yet formed. CBO Shao Mingfeng emphasized: “As a listed company, we need to have ‘profitable sales and cash flow profit’; the ‘three kings and one bomb’ products released this year will continue to drive growth.”

For Lantu, listing on the Hong Kong Stock Exchange is a “new starting point, not an endpoint,” as Lu Fang expressed the core positioning. As a “trailblazer” in the new energy transformation of central state-owned enterprises, its model of “central state-owned enterprise background + market-oriented operation” provides an important reference sample for the industry.

Lu Fang stated at the meeting: “The automotive industry is a marathon; listing is just completing one phase. We must continue to strive to build a truly high-quality development company.”

Reporter Wu Di

Text Editor Sun Wanqiu