Dongfeng Motor Group Company Limited (489) announced the formal registration of M-Hero Technology (Xiangyang) Co., Ltd. on 26 September 2025, marking significant progress in the formation of a new joint venture as previously disclosed. According to the announcement, this venture will capitalize on technological competencies in off-road sectors and pursue innovation in intelligent technology, while aiming to deliver high-quality products and enhanced outdoor travel experiences.
In addition, the announcement provides more details on the disposal of a 50% equity interest in Dongfeng Honda Engine and clarifies various asset valuations. The valuations of proprietary technology licenses and trademarks relied on the income approach, with specific discount rates derived from factors such as risk-free returns, technical and market risks, capital requirements, and management risk. The proprietary technology licenses were appraised at RMB3,390 million, while the trademark licenses were valued at RMB159 million.
Assets contributed by DFL to the joint venture, including mold assets (RMB286 million), project system and processes (RMB143 million), buildings and structures (RMB109 million), and machinery and equipment (RMB288 million), were assessed using cost and market approaches. The total appraised value of these assets was RMB826 million, reflecting adjustments for value-added tax rates ranging from 6% to 13%.
The announcement identifies Xiangyang High-tech Industrial Development Zone Finance and Financial Bureau (State-owned Assets Management Office of Xiangyang High-tech Industrial Development Zone) as the ultimate beneficial owner of Xianggao Investment. Furthermore, it clarifies that the NA Valuation Report was dated 1 July 2025. Additional information was also provided regarding the income approach adopted to value the 50% equity interest in Dongfeng Honda Engine, with the valuation period determined as five years based on remaining core asset life.
All information in the announcement adheres to the disclosure requirements, with detailed calculations, discount rates, and appraisal methodologies included to ensure transparency. The board of Dongfeng Motor Group Company Limited approved the publication of these details in an effort to keep shareholders and potential investors fully informed of the transaction progress and the underlying valuation processes.