SEPTEMBERASIA BUSINESS OUTLOOK8NEWSROOMDONGFENG PLANS $7.1B PRIVATIZATION, VOYAH EV SPIN-OFFDongfeng Motor Corp has announced plans to take its Hong Kong-listed unit, Dongfeng Motor Group, private in a HK$55.1 billion (US$7.1 billion) deal while simultaneously spinning off its EV arm, Voyah, for a separate Hong Kong listing.Under the privatization plan, Dongfeng will offer HK$6.68 (US$0.85) per share, representing an 11.9 percent premium to the last closing price before trading was halted on August 8. The move comes amid intense price wars in China's automotive sector, which have led to rising costs, shrinking profit margins, and mounting regulatory scrutiny. In the first 11 months of 2024 alone, the industry recorded cumulative retail losses of 177.6 billion yuan (US$24.7 billion), with profits declining 5.1 percent, despite modest revenue growth.Key Highlights· Dongfeng to privatize Hong Kong-listed unit in $7.1B deal· EV arm Voyah to list separately in Hong Kong for global exposure· Move comes amid China's auto price wars and industry restructuringAutomakers, including BYD, have slashed prices by up to 34 percent to clear excess inventory, exacerbating industry pressures.For Dongfeng, privatization will lower reporting costs and simplify operations, while the Voyah EV spin-off aligns with China's national strategy to boost competitiveness in the electric vehicle sector. Dongfeng, which owns nearly 80 percent of Voyah, believes a separate listing will generate global visibility and attract specialized EV investors, while keeping traditional operations under state oversight.This restructuring reflects broader industry consolidation, as rivals like Geely halt capacity expansion to optimize existing facilities. It also comes as regulators crack down on questionable sales practices, including "zero-mileage" registrations. By restructuring, Dongfeng aims to future-proof its EV business while stabilizing its traditional operations. ANT GROUP, PEKING UNIVERSITY PARTNER ON AI HEALTHCARE LABAnt Group has announced a strategic partnership with Peking University Third Hospital in Beijing to establish a joint AI healthcare innovation laboratory.The collaboration aims to develop advanced artificial intelligence applications in healthcare, marking Ant Group's deeper entry into the rapidly expanding medical technology space. This partnership highlights the accelerating adoption of AI across China's healthcare sector, projected to grow from $1.59 billion in 2023 to $16.02 billion by 2028, at a CAGR of 42.5 percent. By the end of 2025, nearly 90 percent of Chinese hospitals are expected to integrate AI solutions. Early successes, such as Tsinghua University's AI hospital model, which achieved 93 percent diagnostic accuracy across 21 specialties, are fueling momentum and validating AI's potential in clinical practice.Key Highlights· Ant Group partners with Peking University Hospital for AI healthcare· China's healthcare AI market set to grow 10x by 2028· Alipay ecosystem gives Ant Group unique advantage in adoptionUnlike traditional tech companies entering healthcare, Ant Group benefits from its Alipay ecosystem, which already enables millions of users to access AI-driven symptom checkers, online consultations, and seamless healthcare transactions. This infrastructure gives Ant Group an edge in integrating new AI healthcare solutions directly into existing patient payment and service flows, creating a smoother adoption pathway.Through its partnership with Peking University Third Hospital, Ant Group aims to co-develop clinical-grade AI applications, strengthening its role not only in digital payments but also in the delivery of next-generation healthcare solutions.The collaboration reflects how tech-healthcare convergence is becoming essential for both institutions and patients as China positions itself at the forefront of global healthcare AI innovation.
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