Revenue and Sales Performance - Total revenue for the first half of 2025 reached RMB 141,602 million, an increase of approximately 26.3% compared to RMB 112,124 million in the same period of 2024[15] - Passenger vehicle sales generated RMB 128,646 million in revenue for the first half of 2025, accounting for 90.9% of total revenue[13] - Revenue from new energy vehicles (NEVs) increased significantly to RMB 36,194 million, representing 28.1% of passenger vehicle sales in the first half of 2025, up from 14.7% in the same period of 2024[15] - Revenue from automotive components and parts increased to RMB 9,679 million, representing 6.8% of total revenue in the first half of 2025[13] - Fuel vehicle sales accounted for RMB 92,452 million, or 71.9% of passenger vehicle sales in the first half of 2025, down from 85.3% in the same period of 2024[15] - Passenger vehicle revenue increased from RMB 101,862 million to RMB 128,646 million, a growth of approximately 26.3% due to technological innovation and market development[17] - Fuel vehicle sales revenue increased from RMB 86,912 million to RMB 92,452 million, reflecting the expansion of business in domestic and international markets[18] - New energy vehicle sales revenue surged from RMB 14,950 million to RMB 36,194 million, attributed to the launch of a new strategy for electric vehicles[18] Financial Performance - The company recorded a net profit of RMB 9,906 million for the period, compared to RMB 7,898 million in the previous period, with a net profit margin of 7.0%[30] - Gross profit increased from approximately RMB 16,806 million to RMB 18,419 million, a growth of about 9.6%, while gross margin decreased from approximately 15.0% to 13.0%[20] - Other income and gains significantly increased from RMB 3,331 million to RMB 8,266 million, a rise of approximately 148.2%, mainly due to increased foreign exchange gains[21] - The company reported a profit of RMB 9,906 million for the six months ended June 30, 2025, representing a 25.4% increase from RMB 7,898 million in 2024[74] - Total comprehensive income for the period was RMB 8,802 million, up from RMB 7,760 million, reflecting a 13.4% growth year-over-year[74] - The basic earnings per share for the period was RMB 1.77, compared to RMB 1.43 in 2024, marking a 23.7% increase[73] Research and Development - Investment in new technology research and development will be a key focus to strengthen the company's competitive advantages[11] - Research and development expenses grew from RMB 3,597 million to RMB 5,200 million, an increase of about 44.6%, reflecting higher investment in R&D[24] - Research and development expenses amounted to RMB 5,200 million, up 44.7% from RMB 3,597 million in 2024[93] Cash Flow and Liquidity - As of June 30, 2025, the company's cash and cash equivalents amounted to approximately RMB 42,520 million, a decrease from RMB 62,693 million as of December 31, 2024[36] - The net cash inflow from operating activities for the period was approximately RMB 14,004 million, down from RMB 20,520 million in the previous period, primarily due to increased income tax payments[37] - The net cash outflow from investment activities was approximately RMB 26,704 million, significantly higher than RMB 4,339 million in the previous period, mainly due to increased expenditures on financial products and structured deposits[37] - Cash generated from operating activities was RMB 17,136 million, a decrease from RMB 21,082 million in the prior year, representing a decline of 18.5%[82] - The company reported a net cash outflow of RMB 20,522 million in cash and cash equivalents, contrasting with a net inflow of RMB 565 million in the previous year[86] Debt and Liabilities - As of June 30, 2025, the company's total debt, including bank loans and other borrowings, was approximately RMB 19,989 million, down from RMB 23,166 million as of December 31, 2024[38] - The debt-to-asset ratio as of June 30, 2025, was 86.1%, a slight improvement from 87.9% as of December 31, 2024[40] - The company's total liabilities increased to RMB 192,303 million as of June 30, 2025, compared to RMB 187,072 million at the end of 2024, reflecting a 2.4% rise[77] Employee and Management - Employee costs recognized for the period were approximately RMB 7,588 million, an increase from RMB 6,513 million for the same period in 2024[56] - The company had 58,256 employees as of June 30, 2025[56] - The total remuneration paid to key management personnel for the six months ended June 30, 2025, was RMB 77,494 thousand, an increase of 17.5% compared to RMB 65,930 thousand for the same period in 2024[118] Market Expansion and Strategy - The company plans to further expand its product lineup and enhance product positioning in the second half of 2025[11] - The company is committed to implementing a globalization strategy to consolidate and expand its overseas advantages[11] - The company plans to invest HKD 1,775.9 million in developing and expanding its new energy vehicle products by 2028[58] - The company plans to expand into overseas markets with an investment of HKD 1,775.9 million by 2029[58] Assets and Investments - The company's non-current assets increased to RMB 57,455 million as of June 30, 2025, compared to RMB 51,595 million at the end of 2024, marking an increase of 11.5%[76] - The net book value of property, plant, and equipment increased to RMB 27,337 million as of June 30, 2025, from RMB 21,156 million as of December 31, 2024, reflecting a growth of approximately 29%[105] - The company recorded a total of RMB 5,432 million in additions to property, plant, and equipment for the six months ended June 30, 2025, compared to RMB 3,601 million for the same period in 2024, reflecting a growth of 51%[105] Risk Management - The company has implemented a comprehensive risk management strategy to mitigate various financial risks, including interest rate and foreign currency risks[43][45] - The company has established a risk control and audit committee to oversee financial matters, comprising four independent non-executive directors[63] Listing and Financial Instruments - The company successfully listed on the Hong Kong Stock Exchange on September 25, 2025, issuing 297,397,000 shares at a price of HKD 30.75 per share[124] - The fair value of financial assets measured at fair value through other comprehensive income included receivables of RMB 2,041 million as of June 30, 2025, compared to RMB 7,547 million as of December 31, 2024[121]

Investment Rating - The report initiates coverage with a "Buy" rating for Chery Automobile [6][3]. Core Insights - Chery Automobile is positioned as a leading player among domestic car manufacturers, focusing on the transition to new energy vehicles, high-end market penetration, and international expansion to drive new growth [1][18]. - The company has established a clear brand matrix consisting of five brands: Chery, Jetour, Exeed, iCAR, and Zhijie, which cater to various market segments from mainstream to high-end and from fuel to new energy vehicles [1][18][21]. - Chery's sales are projected to grow significantly, with a compound annual growth rate (CAGR) of 36.7% for its main brand from 2022 to 2024, and a notable increase in export sales [2][3]. Financial Summary - Revenue forecasts for Chery Automobile are as follows: 2025 at 315 billion CNY, 2026 at 394.3 billion CNY, and 2027 at 485.6 billion CNY, with corresponding net profits of 16.22 billion CNY, 21.36 billion CNY, and 27.19 billion CNY [3][4]. - The company is expected to maintain a strong net profit margin, with a projected price-to-earnings (PE) ratio of 10.40 for 2025, decreasing to 6.20 by 2027 [3][4]. Sales and Market Position - In the 5-20W price segment, Chery ranks second in wholesale sales, with a significant increase in sales from 1.75 million units in 2023 to 2.375 million units in 2024, driven by its strong performance in the new energy vehicle sector [2][3]. - The overall penetration rate of new energy vehicles in the market is 44.9%, with Chery's brands showing robust growth across all segments [2][3]. Brand Performance - The main brand Chery is expected to achieve sales of 1.643 million units in 2024, while Jetour, Exeed, iCAR, and Zhijie are also projected to see substantial sales increases, reflecting the effectiveness of the company's diversified brand strategy [2][21]. - The Jetour brand is particularly noteworthy, with a projected CAGR of 77.7% from 2022 to 2024, indicating strong market demand for its offerings [2][3]. Technological Advancements - Chery has made significant investments in technology, focusing on five key areas: Mars architecture, Kunpeng power, Lion smart cockpit, Falcon intelligent driving, and Galaxy ecosystem, which are expected to enhance its competitive edge in the automotive industry [1][64].

Summary of Key Points Core Viewpoint The Hong Kong stock market has seen significant activity from September 21 to September 27, with 25 companies submitting prospectuses, 3 companies passing hearings, and 2 new stocks successfully listed. Group 1: Companies Submitting Prospectuses - A total of 25 companies submitted listing applications to the Hong Kong Stock Exchange during the specified period, including major players like 大洋电机, 天赐材料, and 格林美 [2][4][5] - Notably, 12 of these companies have already listed on the A-share market, indicating a trend towards dual listings in both A and H shares [2][4] Group 2: Companies Passing Hearings - Three companies successfully passed hearings: 长风药业, 挚达科技, and 金叶国际 [30] - 长风药业 focuses on biopharmaceuticals for respiratory diseases, with projected revenues of 6.08 billion RMB in 2024 [31] - 挚达科技 is the largest provider of home electric vehicle charging stations globally, with revenues of 5.9 billion RMB in 2024 [32] - 金叶国际 is a long-established electromechanical engineering contractor, specializing in HVAC systems [33] Group 3: Companies in the IPO Process - Five companies are currently in the IPO process, including 长风药业, 紫金黄金国际, 西普尼, 博泰车联, and 奇瑞汽车 [34] - 奇瑞汽车 successfully listed on September 25, with a first-day stock price increase of 13.75% [41][43] Group 4: Financial Performance of Companies - 大洋电机 reported total revenues of approximately 109.3 billion RMB in 2022, with a projected increase to 121.13 billion RMB in 2024 [5] - 天赐材料's revenues were approximately 223.17 billion RMB in 2022, expected to decline to 125.18 billion RMB in 2024 [6] - 格林美's revenues were around 293.92 billion RMB in 2022, projected to reach 332.00 billion RMB in 2024 [7] - 万辰集团, a leading snack and beverage retailer, reported revenues of 5.49 billion RMB in 2022, with a significant increase to 323.29 billion RMB in 2024 [10] Group 5: Market Trends and Insights - The trend of companies seeking dual listings in both A and H shares is becoming more prevalent, reflecting a strategic move to access broader capital markets [2][4] - The overall activity in the Hong Kong IPO market indicates a robust interest from companies looking to capitalize on the favorable market conditions [2][30]

Group 1 - The global automotive market is experiencing a significant recovery, with China's market share increasing to 38% in August 2025, up 4 percentage points from the previous year [1][15] - In the first eight months of 2025, global automotive sales reached 61.98 million units, a 6% year-on-year increase, with China contributing 21.1 million units, reflecting a 12% growth [4][12] - The performance of Chinese automotive brands is strong, with BYD ranking 6th, Geely 9th, and Chery 11th globally, indicating a shift in market dynamics favoring domestic brands [2][19] Group 2 - The global automotive market is projected to grow steadily, with 2025 showing a 6% increase in sales compared to the previous year, despite a slight decline in August sales compared to July [4][5] - The Chinese automotive market is characterized by rapid growth, particularly in the electric vehicle segment, which is contributing to the decline of some international brands [2][21] - The performance of major international automotive groups varies, with Toyota maintaining a stable market share while Volkswagen and Honda are experiencing declines [20][21] Group 3 - The automotive market in developing countries is showing significant strength, with countries like Argentina performing well, contrasting with declines in markets like Russia and Mexico [1][12] - The overall market dynamics indicate a shift towards Asian automotive manufacturers, with increased sales and market share for companies like BYD and Geely [19][21] - Seasonal factors and policy changes, such as subsidies in China, are influencing market performance, with expectations of continued growth in the latter half of 2025 [15][18]

Core Viewpoint - Chery Automobile successfully listed on the Hong Kong Stock Exchange on September 25, raising approximately HKD 9.145 billion, marking the largest IPO for a car company in Hong Kong in 2025 [1][4] Group 1: Company Background and Development - Chery Automobile was founded by Yin Tongyue in 1995, starting from a small team in Wuhu, and has grown into a global automotive group [2][3] - The company has been the top exporter of Chinese passenger cars for 22 consecutive years, showcasing its leadership in the international market [1][5] Group 2: IPO Journey - The IPO journey faced multiple challenges, including complex equity relationships and external economic factors, delaying previous attempts in 2004, 2008, and 2016 [3][4] - The successful IPO in 2025 is seen as a significant milestone for Chery, providing necessary capital for its transformation and growth [1][4] Group 3: Financial Performance - Chery's revenue has shown significant growth, with figures of CNY 926.18 billion in 2022, CNY 1,632.05 billion in 2023, and CNY 2,698.97 billion in 2024, alongside net profits of CNY 58.06 billion, CNY 104.44 billion, and CNY 143.34 billion respectively [7] - The company’s overseas revenue reached CNY 1,008.97 billion in 2024, accounting for 37.4% of total revenue, with total sales reaching 2.6039 million units, a year-on-year increase of 38.4% [6][7] Group 4: Strategic Focus and Challenges - Chery is focusing on innovation and technology, with R&D investments projected to increase from CNY 4.128 billion in 2022 to CNY 10.544 billion in 2024 [5][6] - Despite strong sales growth, Chery faces challenges in the new energy vehicle sector, with a significant portion of revenue still coming from traditional fuel vehicles [7][8] - The company aims to enhance its high-end market presence, but struggles with the performance of its core brand, Exeed, and its collaboration with Huawei [8][9]

Core Viewpoint - Chery Automobile has launched the "New Chinese Fuel" strategy, introducing the new models of the Tiggo 9 series, aiming to enhance the driving experience for fuel vehicle users through technological upgrades [1][2] Group 1: New Product Launch - Chery has officially unveiled the Tiggo 9X, Tiggo 9, and Tiggo 9 high-performance version, with promotional pricing and purchase incentives for the National Day holiday [1] - The starting price for Tiggo 9X is 127,900 CNY, with benefits including a 20,000 CNY trade-in subsidy and a lifetime warranty for the first non-commercial owner [1] - Tiggo 9 starts at 137,900 CNY, offering similar trade-in subsidies and financing options, while the high-performance version starts at 155,900 CNY with a 10,000 CNY trade-in subsidy [1] Group 2: Technological Advancements - Chery emphasizes its self-developed "three major components" in fuel technology, positioning itself as a leader in the Chinese SUV market [2] - The new strategy focuses on four core standards: new technology, new intelligence, new safety, and new patterns, aiming to reshape the value system of fuel vehicles [2] - The new generation Kunpeng engine has an installation volume exceeding 3.1 million units globally, showcasing Chery's technological capabilities [2] Group 3: Safety and Comfort Features - The Tiggo 9X is designed to meet global five-star safety standards, with 85% high-strength steel in its body and advanced safety features [4] - The vehicle dimensions are 4817×1930×1741 mm, with a maximum trunk capacity of 2065 L, accommodating up to seven passengers [4] - Tiggo 9 focuses on power and comfort, featuring a Kunpeng 2.0TGDI engine with a maximum power of 192 kW and a peak torque of 400 N·m [4] Group 4: Market Positioning and Future Plans - Chery has entered the Fortune Global 500 and is among the fastest-growing companies, exporting to over 120 countries [3] - The company aims to develop the Tiggo series into a product line with sales reaching millions, enhancing its competitiveness in the global automotive market [5]

Core Insights - Chery is undergoing a comprehensive acceleration in its new energy strategy, significantly altering its competitive positioning in the automotive industry [1] - The company has launched ten new models in 2024, with nine being new energy vehicles, indicating a continuous increase in the proportion of new energy vehicles in its product matrix [1] - Chery's stock debuted on the Hong Kong Stock Exchange on September 25, 2025, with an opening increase of 11.22%, bringing its market capitalization close to HKD 200 billion [1] New Energy Business as a Growth Engine - Chery's journey in new energy development reflects a long-term commitment, having established a clean energy vehicle task force as early as 1999 [2] - In 2024, Chery is the only company among the top twenty global passenger car manufacturers to achieve over 25% growth in new energy vehicle sales, fuel vehicle sales, and both domestic and overseas market sales compared to 2023 [2] - New energy vehicle sales are projected to grow over 265% year-on-year in 2024, making it a crucial growth driver for the company [2] Revenue Growth - Chery's revenue surged from CNY 92.618 billion in 2022 to CNY 269.897 billion in 2024, with a compound annual growth rate (CAGR) of 70.7% [3] - Net profit increased from CNY 5.806 billion to CNY 14.334 billion during the same period, with a CAGR of 57.1% [3] - In Q1 2025, revenue rose by 24% year-on-year to CNY 68.2 billion, with new energy vehicle sales revenue contributing significantly to this growth [3] Hybrid Strategy and Technology Sharing - Chery has leveraged its deep expertise in internal combustion engine technology to achieve breakthroughs in hybrid power systems [4] - The company launched a hybrid technology open-source initiative, promoting collaborative innovation and enhancing industry standards [4] Multi-Brand Differentiation Strategy - Chery employs a multi-brand strategy to cater to diverse markets and consumer needs, with nine out of ten new models in 2024 being new energy vehicles [6] - The iCAR brand has emerged as a leader in the new energy box car segment, while the Zhijie brand, developed in partnership with Huawei, aims to create high-end new energy vehicles [7] Intelligent and New Energy Advancement - Chery plans to allocate 25% of its IPO funds for the development of next-generation vehicles and advanced technologies, with 10% specifically for electrification [8] - The company aims to achieve full brand coverage of intelligent driving systems by the end of 2025, enhancing its competitive edge in smart mobility [9] Globalization Strategy - Chery has established R&D centers and production bases in various countries, including Germany, Spain, Brazil, and Malaysia, to support its globalization strategy [11] - The company is positioned to leverage capital market support to accelerate its transition to new energy, aiming for significant breakthroughs in the sector [11]

Core Viewpoint - Chery Automobile has officially listed on the Hong Kong Stock Exchange after overcoming previous obstacles related to its complex shareholding structure, but it still faces multiple challenges that need to be addressed [1] Group 1: Financial Performance - Chery's revenue is projected to grow from 92.618 billion to 269.897 billion from 2022 to 2024, with a compound annual growth rate (CAGR) of 70.7%, while net profit is expected to rise from 5.806 billion to 14.334 billion [2] - The company's gross margin is forecasted to be 13.5% in 2024, declining to 12.4% in the first quarter of 2025 [2] - Chery's debt ratio remains high, with asset-liability ratios of 93%, 92%, and 89% from the end of 2022 to the third quarter of 2024, and reaching 87.7% in the first quarter of 2025 [2] - Prior to the IPO, Chery distributed a significant dividend of 3.993 billion, equivalent to 27.8% of its 2024 net profit, which may impact its financial flexibility [2] Group 2: Product and Market Position - Fuel vehicles continue to be Chery's primary revenue source, accounting for 69.7% of passenger vehicle revenue in the first quarter of 2025 [3] - In the first eight months of 2025, Chery's new energy vehicle sales reached 496,000 units, representing approximately 28.7% of total sales, which is still below the industry average retail penetration rate [3] - The high-end brand, Exeed, has seen disappointing results, with sales of 7,659 units in August 2023, down 32.45% year-on-year, and a cumulative decline of 3.84% in the first eight months [3] - Chery's new energy brands show uneven development, with iCAR selling 6,947 units in the first quarter of 2025, while the higher-priced ZhiJie sold only 4,461 units [3] Group 3: International Market and R&D - Chery's overseas market is heavily reliant on Russia, which accounted for 54% of its overseas revenue in 2023, posing significant risks due to potential tariff increases [4] - In the first quarter of 2025, Chery's revenue from the Russian market dropped to 27.8%, while growth in Europe, the Middle East, Latin America, and Southeast Asia is accelerating [4] - Despite a research and development expenditure exceeding 10.5 billion in 2024, Chery's R&D expense ratio is low at 3.3% in the first quarter of 2025 compared to industry leaders [4] - Chery's advanced driver-assistance systems are primarily at the L2+ level, while leading domestic competitors are advancing to L3 [4] - The funds raised from the IPO are intended for expanding the passenger vehicle product lineup, developing next-generation vehicles and advanced technologies, implementing global strategies, upgrading the Wuhu production base, and supplementing working capital [4]

Core Viewpoint - Chery Automobile has successfully launched its IPO on the Hong Kong Stock Exchange, raising HKD 9.14 billion with a subscription rate of 238 times, marking it as the largest IPO for a car company in Hong Kong this year [2] Group 1: Company Overview - Chery Automobile was established in 1997 and is headquartered in Wuhu, Anhui, with a registered capital exceeding CNY 5.4 billion [2] - The company has a strategic goal of becoming an "international brand" and has been the top exporter of Chinese passenger cars for 22 consecutive years [2] Group 2: Financial Performance - Chery's revenue is projected to grow from CNY 92.618 billion in 2022 to CNY 269.897 billion by 2024, representing a compound annual growth rate (CAGR) of 70.7% [3] - Net profit is expected to increase from CNY 5.806 billion to CNY 14.334 billion during the same period, with a CAGR of 57.1% [3] - By 2024, Chery's overseas market revenue is anticipated to exceed CNY 100.899 billion, accounting for 37.4% of total revenue [3] Group 3: Market Position - In the first eight months of this year, Chery exported 798,800 vehicles, marking a year-on-year increase of 10.8%, maintaining its position as the top exporter of Chinese automobiles [3] - Chery ranks 14th in the global automotive brand export list among the top 50 Chinese global brands [3] Group 4: Industry Context - China is the largest market for new energy vehicles (NEVs), with a global market share of 24.4% in 2022, significantly higher than the global average of 13.3% [4] - The export of Chinese NEVs has been rapidly increasing, with the number of exports rising from 147,100 units in 2018 to 679,000 units in 2022 [6] - In the first eight months of 2025, NEV exports reached 2 million units, reflecting a year-on-year growth of 51%, outpacing the growth of traditional fuel vehicles [6] Group 5: Technological Landscape - Chinese new energy technology is considered to be 3 to 5 years ahead of the global competition [7] - However, there are warnings about potential technological disruptions from overseas competitors who are actively developing advanced technologies such as solid-state batteries and interactive vehicle networks [9]

Core Viewpoint - Chery Automobile officially listed on the Hong Kong capital market on September 25, 2023, with an opening price of HKD 34.2 per share, an increase of 11.22% from the issue price [2][4]. Group 1: Company Overview - Chery Automobile, founded in 1997, has become the second largest independent brand car manufacturer in China and the eleventh globally, with projected global sales exceeding 2.295 million units in 2024, a year-on-year increase of 49.4% [5]. - From 2022 to 2024, Chery's revenue surged from CNY 92.6 billion to CNY 269.9 billion, with a compound annual growth rate (CAGR) of 70.7%, while net profit increased from CNY 5.8 billion to CNY 14.3 billion, with a CAGR of 57.1% [5][6]. Group 2: Growth Model - Chery's unique "four-track" growth model allows it to achieve strong growth across fuel vehicles, new energy vehicles, domestic markets, and overseas markets simultaneously, providing a diversified revenue source and reducing risks associated with single market dependence [6][10]. - The IPO was oversubscribed by approximately 10 times, indicating strong market demand, with the final issue price set at HKD 30.75 per share, resulting in a market capitalization of HKD 177.34 billion [6][11]. Group 3: New Energy Transition - Chery's transition to new energy vehicles is gaining momentum, with a projected year-on-year sales increase of over 265% in 2024, reflecting its commitment to becoming a leading player in the new energy sector [7][10]. - The company employs a multi-technology approach, including pure electric, plug-in hybrid, and range-extended technologies, addressing market concerns such as range anxiety [10]. Group 4: Globalization Strategy - Chery has maintained its position as the top exporter of Chinese independent brand passenger vehicles for 22 consecutive years, with over 3,169 overseas dealerships and sales exceeding 13 million vehicles globally [12][14]. - The company has established local R&D centers in various countries, enhancing its ability to provide customized products and services that meet local market demands [14][15]. - Chery's overseas revenue accounted for 32.8% to 38.5% of total revenue from 2022 to Q1 2025, showcasing its ability to mitigate regional market fluctuations and benefit from both emerging and developed markets [15].