Group 1 - Chery Automobile (09973) has raised a total of HKD 9.14 billion with an oversubscription of over 47.7 times as of September 19 [1][3] - Zijin Mining (02259) has raised a total of HKD 24.98 billion with an oversubscription of over 7.2 times [1][3] - Xipuni (02583) has raised a total of HKD 0.31 billion with an oversubscription of over 16.9 times [1][3] Group 2 - Total margin financing for Chery Automobile amounts to HKD 445.6664 million, with contributions from various brokers including Futu, Huatai, and others [1][3] - Total margin financing for Zijin Mining amounts to HKD 204.9882 million, with contributions from brokers such as Huacheng and Milite [1][3] - Total margin financing for Xipuni amounts to HKD 5.5599 million, with contributions from brokers including Futu and Huatai [1][3]

Core Viewpoint - Chery Automobile is set to go public on the Hong Kong Stock Exchange on September 25, 2023, with an IPO price range of HKD 27.75 to HKD 30.75 per share, aiming to raise approximately HKD 84.41 billion in net proceeds [2][4]. Group 1: IPO Details - Chery plans to issue approximately 297 million shares, with a median price of HKD 29.25 per share, potentially raising a net amount of HKD 84.41 billion if the over-allotment option is not exercised [2]. - The public offering application will close on September 22, 2023, with the final offer price and subscription details to be announced on September 24, 2023 [2]. Group 2: Cornerstone Investors - Chery has secured cornerstone investment agreements with 13 investors, totaling approximately USD 587 million (around HKD 45.73 billion) [3]. - Notable cornerstone investors include JSC International Investment Fund SPC and HHLRA, among others [3]. Group 3: Financial Performance - Chery's revenue is projected to grow significantly, with expected revenues of CNY 926.18 billion, CNY 1,632.05 billion, and CNY 2,698.97 billion for the years 2022, 2023, and 2024, respectively [4]. - The net profit for the same years is expected to be CNY 58.06 billion, CNY 104.44 billion, and CNY 143.34 billion [4]. - In Q1 2023, Chery reported a revenue of CNY 682.23 billion, a year-on-year increase of 24.25%, and a profit of CNY 47.26 billion, up approximately 90.87% [4]. Group 4: Overseas Market Performance - Chery's overseas revenue is expected to reach CNY 303.87 billion, CNY 770.6 billion, and CNY 1,008.97 billion from 2022 to 2024, accounting for 32.8%, 47.2%, and 37.4% of total revenue, respectively [5]. - In Q1 2023, overseas revenue was CNY 262.89 billion, a year-on-year increase of 29.02%, with its share of total revenue rising from 37.1% to 38.5% [5]. Group 5: R&D Investment - Chery's R&D investment is projected to be CNY 41.28 billion, CNY 68.49 billion, and CNY 105.44 billion from 2022 to 2024, with Q1 2023 investment at CNY 27.61 billion [6]. - The company employs over 14,500 R&D staff, making up 25.8% of its workforce, second only to production staff [6]. Group 6: Use of IPO Proceeds - Chery plans to allocate 35% (HKD 29.54 billion) of the IPO proceeds for passenger vehicle R&D, including 20% (HKD 16.88 billion) for new energy vehicle development [7]. - 25% (HKD 21.10 billion) will be used for next-generation vehicle and advanced technology R&D, with 10% (HKD 8.44 billion) for electric technology upgrades [7]. - 20% (HKD 16.88 billion) will be directed towards expanding overseas markets and global strategies, including establishing production bases in countries like Vietnam and Malaysia [7]. - 10% (HKD 8.44 billion) will enhance production facilities at the Wuhu base, focusing on automation and digital integration [8]. - The remaining 10% (HKD 8.44 billion) will be allocated for working capital and general corporate purposes [8]. Group 7: Future Outlook - Chery aims to become a trusted global participant in the smart mobility ecosystem, focusing on product diversification, brand enhancement, and significant investment in new technology R&D [10]. - The upcoming IPO marks a new development phase for Chery, highlighting its technological foundation, rapid sales growth, and strong financial performance [10].

Group 1 - Chery Automobile is set to complete its IPO process in Hong Kong, marking the largest IPO in the market for 2025, with shares expected to begin trading on September 25 [2] - The company plans to globally offer 297 million shares, with 29.73 million shares allocated for Hong Kong and 268 million shares for international investors, alongside an overallotment option of 44.61 million shares [2] - The pricing range for the IPO is set between HKD 27.75 and HKD 30.75, with the final price expected to be determined on September 23 [2] Group 2 - Chery's financial performance has shown significant growth, with revenue increasing from CNY 92.618 billion in 2022 to CNY 269.897 billion in 2024, and net profit rising from CNY 5.806 billion to CNY 14.334 billion during the same period [3] - In the first quarter of 2025, the company reported revenue of CNY 68.223 billion and a net profit of CNY 4.726 billion [3] - Chery became the second-largest domestic passenger car brand in China in 2024, achieving global passenger car sales of 2.295 million units and maintaining its position as the top exporter of Chinese brand passenger cars for 22 consecutive years [3]

Core Viewpoint - Chery Automobile is launching an IPO in Hong Kong with a price range of HKD 27.75 to 30.75 per share, aiming to raise approximately HKD 84.4 billion, positioning itself as a significant player in the capital market while telling a profitable and future-oriented story [1][3]. Group 1: Valuation and Market Position - The IPO price range is set at HKD 27.75 to 30.75, with an entry fee of HKD 3,106 for 100 shares, resulting in a price-to-earnings ratio of approximately 11.19 times based on a projected net profit of HKD 14.14 billion for 2024 [5]. - Chery's market capitalization post-IPO is expected to be between HKD 160 billion and HKD 177.3 billion, ranking it seventh among Chinese automotive companies [5][6]. Group 2: Fundraising Scale and Allocation - The net fundraising amount of approximately HKD 84.4 billion positions Chery among the larger IPOs in the global automotive sector, making it the largest automotive IPO in Hong Kong for 2025 [7]. - The funds will be allocated as follows: 35% for R&D of various passenger car models, 25% for next-generation vehicles and advanced technologies, 20% for expanding overseas markets, and the remaining 20% for production facility upgrades and working capital [8]. Group 3: Industry Standing and Performance - According to Frost & Sullivan, Chery ranks as the second-largest independent passenger car brand in China and the eleventh globally, with projected sales of 2.295 million vehicles in 2024 [9]. - In the first half of 2025, Chery's passenger vehicle sales reached 1.188 million, reflecting a year-on-year increase of 14.38% [9]. Group 4: Financial Performance and Challenges - Chery's revenue grew significantly from HKD 92.6 billion in 2022 to HKD 269.9 billion in 2024, with net profit increasing from HKD 5.8 billion to HKD 14.3 billion during the same period [12]. - The company faces challenges in the electric vehicle sector, with only 28.7% of its sales coming from new energy vehicles, compared to over 50% market penetration in China [14]. Group 5: Market Confidence and Investor Support - The IPO has attracted 14 cornerstone investors, who collectively subscribed to 1.49 billion shares, accounting for about 50% of the total offering, providing strong confidence for Chery's market entry [6][10]. - The initial market response has been positive, with Chery's shares being oversubscribed nearly tenfold on the first day of the offering [3][10].

Core Viewpoint - Chery Automobile is facing significant challenges in its IPO process, with a substantial reduction in expected fundraising amounts and concerns over its low R&D investment and profitability compared to leading competitors in the industry [1][3][9]. Financial Performance - Chery's revenue and net profit have shown consistent growth from 2022 to 2024, with revenues of 926.18 billion yuan, 1,632.05 billion yuan, and 2,698.97 billion yuan, and net profits of 58.06 billion yuan, 104.44 billion yuan, and 143.34 billion yuan respectively [3][5]. - In Q1 2025, Chery achieved a revenue of 682.23 billion yuan, marking a year-on-year growth of 24.2%, with a net profit of 47.26 billion yuan, up 90.9% year-on-year [3]. Market Position and Sales - In 2024, Chery sold 2.604 million vehicles, a year-on-year increase of 38.4%, making it the second-largest domestic brand in terms of sales [5][10]. - Despite strong sales, Chery's average vehicle price was 10.36 million yuan, with a net profit of approximately 0.55 million yuan per vehicle, the lowest among major competitors [11][12]. R&D and Technological Transition - Chery has committed to increasing R&D investment, with planned expenditures of 1 billion yuan over five years for smart technology development, but the effectiveness of these investments remains questionable [6][9]. - The company’s R&D spending from 2022 to Q1 2025 was 41.28 billion yuan, 68.49 billion yuan, 105.44 billion yuan, and 27.61 billion yuan, but the proportion of R&D investment relative to revenue has been declining [7][9]. Challenges in Electrification and High-End Market - Chery's transition to electric and smart vehicles has been slow, with only 30% of total sales being electric vehicles as of 2025, despite the domestic market's rapid growth in this segment [6][9]. - The partnership with Huawei to develop high-end models has not yielded expected results, with the models failing to gain traction in the market [2][13]. Overseas Market Performance - Chery has emphasized its strong export performance, claiming to be the top exporter for 22 consecutive years, but the average selling price of its vehicles in overseas markets is significantly lower than competitors [10][11]. - In 2024, Chery's overseas sales reached 1.1446 million units, with a year-on-year growth of 21.4%, but the average selling price was only 8.8 million yuan, raising concerns about its competitiveness [11][12].

Core Viewpoint - Chery Automobile is set to launch an IPO, offering approximately 297 million H-shares, with expectations to list on the Hong Kong Stock Exchange on September 25, 2023, marking it as the largest fundraising IPO for a car company this year, potentially revitalizing the Hong Kong market and reshaping global perceptions of Chinese automotive valuations [1][4]. Financial Performance - From 2022 to 2024, Chery's revenue is projected to grow from 92.618 billion to 269.897 billion, achieving a compound annual growth rate (CAGR) of 70.7%. In Q1 2025, revenue reached 68.223 billion, a year-on-year increase of 24.2% [6]. - Net profit is expected to rise from 5.806 billion to 14.334 billion, with a CAGR of 57.1%. Notably, Q1 2023 net profit was 4.726 billion, reflecting a significant year-on-year growth of 90.9% [6]. - Chery is the only Chinese passenger car company among the top twenty globally to achieve over 25% growth in domestic, overseas, new energy, and fuel vehicle sales compared to 2023 [6]. Market Position and Strategy - Chery has established a comprehensive product matrix with five major brands, allowing it to attract a diverse customer base across various price segments [7]. - The company has a strong global strategy, gaining a first-mover advantage in overseas markets, particularly in the EU and Southeast Asia, which enhances its brand recognition and market share [7][8]. - In 2024, Chery is projected to be the top-selling Chinese independent brand in Europe, South America, the Middle East, and North Africa, with its Exeed brand leading in exports among high-end Chinese brands [8]. Technological Advancements - Chery has developed a "power + architecture + intelligence" technology closed loop, which serves as a competitive moat, enabling it to stand out in the market [10]. - The company is pursuing a multi-pronged approach in the power sector, with advancements in hybrid and electric technologies, including a solid-state battery expected to be operational by 2026 [10][11]. - Chery's modular vehicle development platform, Mars architecture, supports rapid product iteration and market responsiveness [11]. Investment Appeal - The upcoming IPO is seen as a crucial link between industrial strength and capital value, enhancing Chery's competitive edge and providing a solid foundation for future growth [10]. - The shift in valuation logic for Chinese car companies from scale to technology is highlighted, with Chery positioned to benefit from this transformation, making it an attractive investment opportunity [13].

Investment Rating - The report assigns an IPO-specific rating of "5.6" to the company, indicating a favorable outlook compared to peers like Geely Automobile [9]. Core Insights - Chery Automobile is recognized as a leading passenger car manufacturer in China, with a strong brand matrix and significant growth potential in various market segments [1][3]. - The company has demonstrated impressive revenue growth, with projected revenues of 926.2 billion, 1,632.1 billion, and 2,699.0 billion yuan from 2022 to 2024, reflecting a compound annual growth rate (CAGR) of 70.7% [1]. - The global passenger car market is expected to grow at a CAGR of 3.5% from 2025 to 2030, with China's market showing a CAGR of 1.9% from 2019 to 2024 [2]. Company Overview - Chery Automobile was established in 1997 and is headquartered in Wuhu, China, with five distinct brands: Chery, Jetour, Exeed, iCAR, and Zhijie, catering to diverse customer needs [1]. - The company has been the top exporter of Chinese passenger cars since 2003, maintaining a strong international presence [1]. Industry Status and Outlook - The global passenger car industry is entering a mature phase, with total sales projected to reach 74.3 million units in 2024 and 100 million units by 2035 [2]. - The Chinese passenger car market is characterized by its size and dynamism, with sales expected to reach 22.7 million units in 2024 [2]. Strengths and Opportunities - Chery's diverse brand portfolio and strong R&D capabilities position it well for future technological advancements and market expansion [3]. - The company is noted for its global capabilities, making it one of the most prominent Chinese passenger car enterprises in international markets [3]. Weaknesses and Risks - The automotive market is highly competitive, with potential cyclical and volatile demand for new energy vehicles [4].

Core Viewpoint - Chery Automobile has officially launched its Hong Kong IPO process, aiming to raise funds primarily for new technology and model development, overseas market expansion, and smart manufacturing upgrades, marking a significant step in its global integration and brand internationalization [1][3]. Financial Performance - Chery's total revenue is projected to grow from RMB 92.6 billion in 2022 to RMB 269.9 billion in 2024, reflecting a compound annual growth rate (CAGR) of 70.7%. Net profit is expected to increase from RMB 5.8 billion to RMB 14.3 billion during the same period, with a CAGR of 57.1% [3]. - In 2024, Chery anticipates a revenue of RMB 269.9 billion, a year-on-year increase of 65.4%, and a net profit of RMB 14.33 billion, up 37.2% year-on-year, showcasing strong growth momentum [3]. - Chery's vehicle sales are projected to reach 2.295 million units in 2024, representing a 49.4% year-on-year increase [3]. Global Expansion - Chery has maintained its position as the top exporter of Chinese passenger cars for 22 consecutive years, with its vehicles sold in over 100 countries and regions, accumulating over 13 million units globally [3][5]. - The company has entered a new phase of globalization, termed "Overseas 3.0," establishing a comprehensive production layout both domestically and internationally, which reduces production costs and meets diverse market demands [5][9]. Brand Development - Chery has developed a brand matrix consisting of five brands: Chery, Jetour, Exeed, iCAR, and Zhijie, which contributed 91.5% of the company's total revenue in 2024, demonstrating strong brand synergy [4]. Technological Advancements - Chery has invested significantly in safety and technology, including an 18 billion RMB investment in a collision laboratory, which conducts over a thousand crash tests annually [7]. - The company has developed advanced hybrid power systems, achieving a thermal efficiency of 48% with its Kunpeng Tianqing engine, addressing industry challenges related to range anxiety and performance compromise [7][8]. Market Positioning - Chery's global network and localized operations provide a competitive edge, with overseas business contributing 37.4% of total revenue in 2024 [9]. - The company has established a robust dealer network with 2,958 outlets worldwide, enhancing its market presence and competitive barriers [9]. Future Outlook - Analysts believe Chery's investment value lies in its unique business model and sustainable growth potential, supported by over 20 years of global operational experience that is difficult for competitors to replicate [10]. - With the increasing penetration of global electric vehicles and the launch of new models and technologies, Chery is expected to maintain a high growth trajectory, particularly following the full-scale launch of localized production in Europe [10].

Core Viewpoint - Chery Automobile Co., Ltd. is set to launch an IPO, offering 297 million shares globally, with a pricing range of HKD 27.75 to HKD 30.75, aiming to enhance its capital structure and support its transition to electric vehicles [1][2][5]. Summary by Relevant Sections IPO Details - Chery plans to issue 297,397,000 shares, with 29,739,700 shares available for Hong Kong and 267,657,300 shares for international distribution, plus an over-allotment option of 44,609,500 shares [4]. - The IPO subscription period is from September 17 to September 22, with pricing expected to be finalized on September 23 and trading commencing on September 25 [1]. Financial Performance - Chery's projected revenue for 2024 is CNY 269.9 billion, representing a 65.4% year-on-year increase, while net profit is expected to reach CNY 14.3 billion, up 37.2% [5][9]. - Historical revenue figures show growth from CNY 92.6 billion in 2022 to CNY 163.2 billion in 2023, with a first-quarter revenue of CNY 68.2 billion in 2025 [9][10]. Market Position and Strategy - Chery's revenue from traditional fuel vehicles remains significant, accounting for 85.1% in 2022, 94.8% in 2023, and 76.1% in 2024, while electric vehicle revenue is increasing, reaching 30.3% in Q1 2025 [12]. - The company has a high debt-to-asset ratio, recorded at 93.1% in 2022, but is showing a gradual decline, indicating improvements in financial structure [15][16]. Organizational Changes - Chery has undergone structural adjustments, establishing a domestic business unit with four divisions to enhance operational efficiency [17]. - The company’s major shareholders include Chery Holding, Anhui Credit Financing Guarantee Group, and others, reflecting a complex ownership structure that has been a barrier to its IPO [17]. Industry Context - The rapid evolution of the electric vehicle sector necessitates significant capital investment, making the IPO a crucial step for Chery to secure funding for R&D and market expansion [19]. - Chery's delayed IPO process contrasts with competitors like BYD and Geely, which have already accessed capital markets, highlighting the competitive landscape [21][22].

Group 1 - Chery Automobile launched its IPO on the Hong Kong Stock Exchange on September 17, with a share price range of HKD 27.75 to HKD 30.75, aiming to raise up to HKD 91.45 billion, potentially reaching HKD 105.17 billion if the over-allotment option is fully exercised [1] - The IPO plans to issue 297 million H-shares, representing 5.16% of the total shares post-issue, with 90% allocated for international offering and 10% for public offering, along with a 15% over-allotment option [1] - Thirteen cornerstone investors have committed to the IPO, with total subscriptions amounting to approximately HKD 45.73 billion, including significant investments from various funds and companies [1] Group 2 - The net proceeds from the IPO will primarily be used for R&D of various passenger car models, enhancing core technology capabilities, expanding overseas markets, upgrading production facilities in Wuhu, Anhui, and for general corporate purposes [2] - Chery Automobile is the second-largest independent passenger car brand in China and the eleventh largest globally, with a projected growth of over 25% in both electric and fuel vehicle sales in 2024 compared to 2023 [2] - The company has five brands, including Chery, Jetour, Exeed, iCAR, and Zhijie, each catering to different customer needs and preferences [2] Group 3 - Since 2003, Chery Automobile has been the top exporter of passenger cars among independent brands in China, with over 13 million vehicles sold globally across more than 100 countries and regions by August 2025 [3] - In 2024, Chery is expected to lead in sales among Chinese independent brands in Europe, South America, and the Middle East and North Africa, and rank second in North America and Asia (excluding China) [3] - The company's revenue for 2022, 2023, and 2024 is projected to be CNY 92.62 billion, CNY 163.20 billion, and CNY 269.90 billion, respectively, with net profits of CNY 5.81 billion, CNY 10.44 billion, and CNY 14.33 billion [3]