Dongfeng Shares Half-Year Report: No Desperate Push for Volume, Profits Returned Instead

Recently, Dongfeng Shares released its half-year report: 5.516 billion in revenue, up 9.64% year-on-year. Against the backdrop of the industry facing overall transformation and intensified competition, while such growth performance may not be stunning, it also indicates that the transformation has yielded preliminary results.

Looking further down at the numbers makes it even more interesting.

Total profit was 169 million yuan, a significant year-on-year increase of 83.56%; net profit attributable to the parent company was 124 million yuan, up 27.83% year-on-year. Revenue increased by less than 10 percentage points, yet profit growth soared 83.56%. In the current macro environment, for a commercial vehicle enterprise to achieve this kind of scissors difference, there is only one explanation—no longer making money by "selling more", but by "selling correctly".

Products Were Correct: Three Legs Landing Simultaneously

Financial reports show that Dongfeng Shares sold 69,000 vehicles in the first half of the year, up about 0.44% year-on-year, but the composition has changed completely.

New energy vehicles sold 18,000 units in the first half, nearly doubling, a 99.2% year-on-year increase, significantly outperforming industry growth. Its share of total sales reached 26.9%. Last year it was a supplementary role, this year it is the main course.

What is truly worth watching is the change in conclusions behind the numbers. First, fuel vehicle sales are declining. Domestic fuel vehicles fell 8.8% year-on-year; low-margin older light trucks and light passenger vehicles saw a significant sales contraction; Second, new energy is being refined. Battery swap models and cold chain special vehicles increased their share; these vehicles have high unit prices and thick profits; Third, new product launches concentrate on new energy. Multiple battery swap light trucks and VAN vehicles launched densely; production capacity and R&D resources are tilting towards new energy.

Such results led to a 573.4% year-on-year increase in new energy light truck sales. Dongfeng Duolic D6E battery swap version, Qiankun K6E precisely positioned for city distribution and cold chain, the bulk of orders came from scaled fleets and cold chain logistics enterprises. On March 28, Qiankun K6/K6E launched in Chengdu. In April, tasting events extended to Nanjing, Urumqi, Beijing, and Xiangyang.

The product structure adjustment was correct, the manufacturing end must be able to keep up.

The Xiangyang Green Intelligent Factory put into production in 2025, first half of this year, single-shift capacity utilization reached 102%. The final assembly workshop produces one vehicle every 150 seconds. A single final assembly workshop can produce more than 600 models with different configurations—pure electric, hybrid, and fuel are mixed and produced on the same production line. In the past, we built what cars, customers bought what cars. Now, if customers want what cars, we build what cars.

The domestic light truck industry's first automated AGV production line operates synchronously, workshop turnover inventory decreased by 50%, manufacturing efficiency increased by 15%.

Beyond new energy, traditional fuel vehicles are also moving. Fuel version light trucks are equipped with Phase IV fuel consumption engines, 2000 Bar ultra-high pressure common rail systems. The special vehicle segment released a new brand strategy on June 12, reserving chassis interfaces for sanitation, cold chain, and box cargo modification scenarios to shorten modification cycles.

Brand Integration Was Correct: Deliveries More Than Doubled in Over Two Months

On March 26, Dongfeng Shares released a new VAN brand "Dongfeng Freeton", comprehensively integrating its two brands "Dongfeng Yufeng" and "Dongfeng Ruileda".

Previously, multiple series ran in parallel, product positioning overlapped, channels internally competed for their own orders, severe internal consumption. After integration, thought is unified, brand is unified, resources are unified. On April 15, Freeton V8E and V10 launched in Chongqing. From launch to half-year report disclosure, over two months, Freeton series delivery volume increased 153.9% year-on-year.

Product definition was derived from following vehicles. The R&D team conducted 400,000 km of data collection and 1 million km of user follow-up visits across eight typical cities.

V8E focuses on same-city distribution, equipped with CATL 53 kWh 2C ultra-fast charging battery or Fudi 2C Blade Battery, 100 km electricity consumption only 13.8 kWh, leading the industry by 17%; rear-wheel drive, unafraid of heavy load climbing. V10 focuses on urban-rural logistics, 163 horsepower, 400 Newton-meters torque, engine thermal efficiency 43.5%.

The brand PR department is also working hard. On May 9, Dongfeng Freeton V10E was donated to Cuba Latin American News Agency; 108 orders were won in the Latin American market; On May 10, it appeared at China Brand Day; On June 27, Taihu discussed "Electric" endurance challenge, city distribution real working condition average endurance 401.38 km, first place ran 480.94 km. Previously, this brand could not be seen outside, now deliveries are speaking, events are speaking, real data is speaking, the outside world is starting to see it.

Channels Were Correct: Overseas Rooted, Channels Restructured

What truly changed overseas is not sales volume, but the tactics.

First half export completed vehicles 13,000, up 81.4% year-on-year, significantly outperforming industry export growth. On January 12, Egypt dealer store opened. On June 11, 12, Malaysia delivered 830 units in two days, new signed 500 units, signed another 200 units, cumulative over 1500 units.

Dongfeng Import & Export Company Chairman Wang Long said very clearly: "View Malaysia as the core of Southeast Asia market layout, achieve the leap from single product export to full-chain localized operation." — Not just selling cars, but planting sales networks, service networks, parts supply, and technical training fully locally.

Channels also were restructured. Previously assessment pressured warehouse wholesale, dealers just moved cars from factory warehouse to their own warehouse. Now set terminal price red lines, assessment weight shifted from "wholesale volume" to "retail transaction, key customer development, new energy proportion". Output fleet development toolkit, push dealers to sell cars into user hands.

Marketing resources concentrated on city distribution logistics and cold chain transportation, logistics parks carried out real vehicle trial operations, directly calculating oil-electric TCO cost difference for fleets.

Cost reduction and efficiency enhancement is also advancing synchronously. Sales expenses decreased 31.01% year-on-year, management expenses decreased 6.94%. Money spent where it counts, money not supposed to be spent is resolutely not spent.

Overseas rooting, channels restructuring, expense control — the logic of selling cars has completely changed.

Money Was Spent Correctly: Engines Not Lost, R&D Increased

Dongfeng Shares did not do the radical thing of "one stroke cutting fuel".

Dongfeng Cummins Engine sales in the first half reached 130,000 units, up 18.39% year-on-year. This growth rate under the halo of new energy doubling is not worth bragging about, but it is the "blood transfusion system" for the entire transformation. Before new profit centers grow up, the engine sector is the most important cash source—replenishing new energy, replenishing R&D, replenishing overseas expansion.

What is more worth watching than current period profit is R&D investment.

213 million, up 74.48% year-on-year. Commercial vehicle industry profits are thin, R&D investment over 100 million requires determination.

Money spent on four lines: Pure electric platform iteration, hydrogen fuel logistics vehicle reserves, skateboard chassis R&D, intelligent driving implementation.

On June 6, Dongfeng OpenVAN autonomous logistics vehicle brand global debut, four L4 level products—DF-2, DF-8, DF-25, DF-60, full coverage from last-mile delivery to mainline logistics. Smart brain partnered with Jiushi Intelligent self-developed, computing power industry top, L4 intelligent driving verified by over 130 million kilometers. At the launch event, signed with 8 enterprises, strategic orders over 4,000 units, expected to start delivery in August.

On June 24, DF-8 autonomous delivery cold chain logistics vehicle appeared at Asia Logistics Biennial. On June 30, partnered with Zhongli Shares to open up autonomous logistics full-link closed loop.

This investment is not buying current sales, it is an entry ticket for future elimination if not joining the game.