After Geely Auto raised 20 billion yuan to return to a shares for listing, Dongfeng Motor Group Co., Ltd. (hereinafter referred to as “Dongfeng Group”) with 21 billion financing plan, also officially announced the return to a. On the evening of October 13, Dongfeng Group issued the “initial public offering stock prospectus (application draft)” on the gem. It plans to issue no more than 957 million shares and raise 21 billion yuan, which will be used for new brand high-end new energy passenger vehicle projects, new generation vehicles and forward-looking technology development projects, and supplement working capital. Similar to Geely Automobile, Dongfeng Group is listed in a shares, and its main purpose of financing is to vigorously develop new energy vehicle business. However, as a true “latecomer”, on the crowded new energy track, the market is full of doubts about whether Dongfeng Group can fight a way out of it. At the same time, the current situation of the company’s operation and finance is also worthy of investors’ attention. < p > < p > on July 27 this year, Dongfeng Group announced for the first time its plan to return to A-share listing, and officially disclosed its prospectus on October 13. According to the information in the prospectus, Dongfeng Group will issue no more than 957 million ordinary A shares, and plans to raise 21 billion yuan. The specific amount is determined according to the market conditions at the time of issuance. < p > < p > among the projects raised, lantu brand high-end new energy vehicle project plans to use 7 billion yuan of raised funds, with a total investment of 11 billion yuan, which is the largest independent project. < / P > < p > the main body of the project is lantu Automotive Technology Co., Ltd. Lantu automobile was registered on June 16, 2020, and is committed to building its own brand of high-end new energy passenger vehicles, covering the development of Landu models, the construction of channels and digital marketing platform. < p > < p > according to the plan of Dongfeng Group, seven new models will be developed from 2021 to 2025, so as to realize the overall layout of medium and high-end new energy passenger vehicle market. Among them, Lando’s first mass production model “IFREE” was officially unveiled at Beijing International Auto Show on September 26. < / P > < p > in recent years, the state has also continued to provide strong policy support to the new energy vehicle industry. Through the new energy double integral policy, purchase subsidy and purchase tax exemption policy, the traditional automobile industry is guided to change to new energy direction. The purchase subsidy and purchase tax exemption policy of new energy vehicles are extended for another two years. With the strong promotion of national policies and the large amount of investment of real gold and silver, all kinds of capital have been attracted to rush in, and the industry has achieved great leap forward development in a short period of time. But the new energy track is full of temptation, but also full of thorns. < / P > < p > the new automobile manufacturing forces, represented by Tesla, Weilai automobile, Xiaopeng automobile, ideal automobile, etc., have doubled the sales volume around 2020 and quickly occupied the market share. However, behind this is the financing and loss of tens of billions of yuan of these companies in previous years. < p > < p > BYD, a leading auto enterprise with its own brand, has been the first to cultivate new energy and invest heavily, but the road of transformation is also full of twists and turns. In September this year, when the industry generally recovered, BYD’s sales in the first nine months still fell by 19.9% year-on-year, of which the sales of new energy vehicles dropped by 42.4%. However, SAIC, BAIC, GAC, etc., which are both major domestic automobile groups and start new energy earlier than the company, are still struggling on the road of high-end new energy transformation. < p > < p > aion LX and marvel X of SAIC, which are positioned at the high end, shoulder the high expectations of their respective brands, but the results are disappointing. Aion LX sells only a few hundred units per month, while Marvel x even has single digit sales in some months. The low-end EU series of BAIC new energy once sold well, but when the subsidy was tilted to the high-end, the sales declined and the halo of star models faded. Just launched the high-end products arcfox series of recognition, but also need to be tested by the market. < p > < p > Dongfeng Lando, which has only registered for 4 months and has just launched its first high-end mass production concept car, has entered the market as a “latecomer”. There are many doubts about its future. < / P > < p > it is worth pondering that Renault, which has cooperated with Dongfeng Group for many years, did not choose Egert, a new energy company jointly invested by Dongfeng, Renault and Nissan, to continue its new energy vehicle business after withdrawing from the fuel vehicle business cooperation with Dongfeng Group. Instead, it started a new business, injected capital into the new energy company of Jiangling group and cooperated with Jiangling to develop electric vehicles. < / P > < p > since 2018, the domestic automobile industry has entered a downturn. Although the commercial vehicle business of Dongfeng Group has played a certain role in balancing, the overall operation of the company is not optimistic. < / P > < p > data shows that from 2015 to the middle of 2020, the book balance of inventory of Dongfeng Group was 8.665 billion, 8.734 billion, 10.659 billion, 10.711 billion, 12.191 billion and 12.881 billion, respectively, which increased for five consecutive years, mainly in inventory goods. From 2018 to the middle of 2020, the company’s cash flow from operating activities was – 18.352 billion, – 10.113 billion and – 3.087 billion, respectively, with continuous net outflow, while the previous net outflow was in 2013. < / P > < p > at the same time of inventory increase and net cash flow outflow, the company is still expanding greatly. By the end of 2019, the construction in progress of Dongfeng Group was 3.944 billion yuan, nearly doubling compared with the end of 2018, and further increased to 5.343 billion yuan by the end of June 2020. < p > < p > according to the prospectus, from the end of 2017 to the end of June 2020, the total personal loans of the company were 29.438 billion, 41.203 billion, 67.301 billion and 74.64 billion, accounting for 86.14%, 84.01%, 88.88% and 92.01% of the total loans and advances, respectively, which is the main business of the auto finance sector. At the same time, the company’s overall non-performing loan ratio increased from 0.63% in 2017 to 1.22% at the end of June 2020, and the non-performing rate nearly doubled in three years. While the scale of personal loan business expanded, the decline of quality was more obvious. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.