Dongfeng Denies Consolidation with FAW and Announces No New Joint Venture Brand Preparation

Dongfeng Group Co., Ltd. denied the merger with FAW Group and announced that it has not introduced a plan for a new joint venture brand.

On March 29th, at the 2016 performance conference held in Hong Kong, Dongfeng Motor (6.700, 0.03, 0.45%) Chairman Yan Yanfeng made it clear that the cooperation between Dongfeng and FAW is mainly to jointly research forward-looking technology and discuss other issues in the market. The question "No discussion, no plan".

The market generally understood that the speech of Yan Fengfeng pointed to the merger rumors of Dongfeng Motor and FAW which had long been circulating.

On March 30, Dongfeng Motor’s listed company Dongfeng Motor Group Co., Ltd. (Dongfeng Group Co., Ltd., 00489.HK) told the relevant sources that Mr. Yan Yanfeng did have related statements. As of now, the Group has not merged with FAW Group. Plans and arrangements. However, it also added that, after all, the merger of the two major central SOEs will be able to accurately know the dynamics and details will be very few, but there is no relevant news at the public level.

On February 17th, Dongfeng Motor Corporation and China FAW Group Co., Ltd. jointly established the signing ceremony of the “Forward-looking and Common Technology Innovation Center” strategic cooperation framework agreement in Changchun. According to the news of Dongfeng Group Corporation, according to the agreement, according to the agreement, Dongfeng and FAW will jointly explore new systems and mechanisms for technological innovation management on the platform of the Innovation Center, share technical and investment risks, and reduce R&D costs. Rapidly improve the research level of forward-looking common technologies in the Chinese automotive industry.

In the 2016 annual report, Dongfeng Group's shares will clearly focus on the development of new energy batteries, motors, and electronic control technologies, and accelerate the deployment of intelligent networking business as the Group's key work in 2017.

The annual report shows that in 2016, Dongfeng Group's auto sales vehicles exceeded 3 million units, reaching 3.5168 million units, up 10.1% year-on-year; sales volume ranked second in the industry; profit attributable to shareholders amounted to approximately 13.355 billion yuan, up year-on-year. Growth of 15.6%; revenue of 122.242 billion yuan, a decrease of 4.144 billion yuan from last year, a decrease of approximately 3.3%, the company attributed the decline in revenue to the poor sales of the Dongfeng Peugeot Citroen brand.