Core Viewpoint - Geely Automobile Holdings Limited plans to acquire all issued shares of Zeekr Intelligent Technology Co., Ltd, aiming for a complete merger, enhancing its position in the smart electric vehicle sector [1] Group 1: Acquisition Details - Geely currently holds approximately 65.7% of Zeekr's shares, and upon completion of the transaction, Zeekr will be fully integrated into Geely [1] - As part of the strategic framework of the "Taizhou Declaration," Geely announced an optimization of the equity structure of Zeekr and Lynk & Co, involving a 9 billion yuan acquisition of 50% equity in Lynk & Co and a 367 million yuan subscription for additional registered capital [3] - After the completion of the transaction, Zeekr will own 51% of Lynk & Co, while Geely will retain 49%, making Lynk & Co a non-wholly-owned subsidiary of Zeekr [3] Group 2: Strategic Implications - The acquisition is a significant step to implement the "Taizhou Declaration," focusing on the automotive core business, improving resource utilization efficiency, and deepening brand synergy [3] - Geely aims to enhance its global competitiveness in the smart electric vehicle sector through this integration, promoting internal resource consolidation and cost reduction [3][4] - The brands under Geely, including Zeekr as a global luxury tech brand and Lynk & Co as a high-end new energy brand, will seek collaborative development across various aspects such as technology, product, supply chain, and international market expansion [3] Group 3: Leadership Statements - Geely's chairman, Li Shufu, emphasized the need to adapt to market competition and complex economic conditions, focusing on integrating automotive business and enhancing innovation and profitability [4] - The company will maintain close communication and cooperation with the U.S. and international capital markets [4] - Geely will hold a Q1 2025 earnings release conference on May 15 to provide further updates on its business developments [4]

Group 1 - Major U.S. stock index futures are showing positive trends, with Dow futures up 0.52%, S&P 500 futures up 0.58%, and Nasdaq futures up 0.63% [1] - Popular Chinese stocks are experiencing declines in pre-market trading, with Alibaba down 1.77%, Pinduoduo down 1.01%, NetEase down 1.73%, and JD.com down 0.76% [1] - Novo Nordisk's weight loss drug Wegovy saw a significant sales increase of 85% year-on-year, contributing to a 19% rise in net sales to 78.087 billion Danish Krone in Q1 2025 [1] - Geely Auto has proposed a non-binding offer to privatize Zeekr at a price of $2.566 per share or $25.66 per American Depositary Share, resulting in an over 11% increase in Zeekr's stock [1] - Amazon's autonomous driving subsidiary Zoox plans to open a new factory in the Bay Area, California, to expand its production capacity [1] Group 2 - OpenAI is restructuring its company and plans to reduce its revenue-sharing percentage with Microsoft from 20% to at least 10% by 2030, pending Microsoft's approval [2] - Ferrari reported a 17% increase in net profit for Q1, with net revenue reaching €1.791 billion, a 13% year-on-year growth [2] - Rivian has lowered its delivery target for the year to between 40,000 and 46,000 vehicles, down from a previous estimate of 46,000 to 51,000 vehicles due to tariffs and other factors [2] - AMD anticipates a revenue loss of approximately $1.5 billion due to new U.S. chip export controls [2]

Core Viewpoint - Geely Auto plans to acquire all issued shares of Zeekr, aiming for a complete merger, which will enhance its competitive position in the automotive market [1] Group 1: Company Strategy - Geely currently holds approximately 65.7% of Zeekr's shares, and upon completion of the transaction, Zeekr will be fully integrated into Geely Auto [1] - Geely's Chairman, Li Shufu, emphasized the need for strategic adaptation in response to intense market competition and a complex economic environment [1] Group 2: Business Integration and Innovation - The company aims to consolidate its automotive business, enhance technological advantages, and improve innovation and profitability [1] - Geely is focused on creating long-term value and establishing itself as a leading global smart electric vehicle group [1] Group 3: Market Communication - Geely intends to maintain close communication and cooperation with the US and international capital markets [1]

Group 1 - The company announced a non-binding offer to privatize Zeekr, aiming to enhance resource integration, reduce costs, and improve competitiveness [1] - The proposed valuation for Zeekr is $2.566 per share or $25.66 per American Depositary Share (ADS), with options for shareholders to receive cash or new shares [1] - The offer represents a premium of approximately 13.6% over the last trading price of the ADS on the NYSE and a 20.0% premium over the volume-weighted average price over the last 30 trading days [2] Group 2 - The company currently holds about 65.7% of Zeekr's issued share capital [2] - If the privatization proposal is completed, Zeekr will become a wholly-owned subsidiary of the company and will be delisted from the NYSE [2]

Core Viewpoint - Geely Auto has submitted a non-binding proposal to privatize Zeekr, offering to acquire all issued and outstanding shares and American Depositary Shares (ADS) of Zeekr, excluding those beneficially owned by the group [1] Group 1 - The proposed purchase price is $2.57 per share of Zeekr or $25.66 per ADS, representing a premium of approximately 13.6% over the last trading day’s closing price of the ADS on the NYSE [1] - The offer also reflects a premium of 20.0% over the volume-weighted average price of the ADS on the NYSE for the last 30 trading days prior to the proposal [1] - As of the announcement date, the group holds approximately 65.7% of the total issued and outstanding share capital of Zeekr [1] Group 2 - If the privatization proposal is completed, Zeekr will become a wholly-owned subsidiary of Geely Auto and will be delisted from the NYSE [1]

Investment Rating - The report maintains a "Recommended" rating for Geely Automobile (0175.HK) with a current price of HKD 16.68 [1] Core Views - Geely's performance in the new energy sector continues to shine, with significant growth in sales and a strong product pipeline, particularly with the launch of new models from Zeekr and Lynk & Co [2][3] - The company is expected to see accelerated profitability driven by new energy vehicles, with a projected revenue growth from RMB 364.8 billion in 2025 to RMB 512.8 billion in 2027 [5][6] - Geely's strategic focus on AI technology integration and smart vehicle development is anticipated to enhance product sales and reshape market valuation [5] Sales Performance - In April, Geely's total wholesale sales reached 234,000 units, a year-on-year increase of 52.7%, with new energy vehicle sales at 125,563 units, up 144.2% year-on-year [2][3] - Cumulatively, from January to April, total wholesale sales were 938,000 units, reflecting a 49.1% year-on-year growth, while new energy vehicle sales reached 465,000 units, marking a 137.7% increase [2][3] Product Launches - The launch of the Geely Galaxy E8 and the Lynk & Co 900 is expected to drive sales, with the Galaxy brand aiming for over 1 million units in annual sales [3][4] - The Zeekr brand is also set to introduce new high-end models, including the Zeekr 9X, which is expected to enhance its market share in the premium segment [4] Financial Projections - The report forecasts Geely's revenue to grow to RMB 364.8 billion in 2025, RMB 439.7 billion in 2026, and RMB 512.8 billion in 2027, with net profit estimates of RMB 14.0 billion, RMB 17.8 billion, and RMB 20.4 billion respectively [5][6] - Earnings per share (EPS) are projected to be RMB 1.39 in 2025, RMB 1.76 in 2026, and RMB 2.02 in 2027, indicating a favorable valuation with a price-to-earnings (P/E) ratio of 11, 9, and 7 times [5][6]

Investment Rating - The report maintains a "Buy" rating for Geely Automobile (0175.HK) with a current price of HKD 16.68 [1] Core Views - Geely's performance in the new energy sector continues to shine, with significant growth in sales and a strong product pipeline, particularly with the launch of new models from Zeekr and Lynk & Co [2][3] - The company is expected to see accelerated profitability driven by new energy vehicles, with projected revenues and net profits increasing significantly over the next few years [5][6] Sales Performance - In April, Geely's total wholesale sales reached 234,000 units, a year-on-year increase of 52.7% and a month-on-month increase of 0.8% [2][3] - Cumulatively, from January to April, total wholesale sales were 938,000 units, up 49.1% year-on-year, with new energy vehicle sales reaching 465,000 units, a year-on-year increase of 137.7% [2][3] Product Launches - The launch of the Geely Galaxy E8 and the Lynk & Co 900 is expected to enhance the company's market position, with the Galaxy brand aiming for over 1 million units in annual sales [3][4] - The Zeekr brand is also set to introduce new high-end models, including the Zeekr 9X, which is anticipated to capture a significant share of the luxury SUV market [4] Financial Projections - Revenue projections for Geely are set at RMB 364.78 billion for 2025, RMB 439.69 billion for 2026, and RMB 512.83 billion for 2027, with net profits expected to reach RMB 140.2 billion, RMB 177.8 billion, and RMB 203.8 billion respectively [5][6] - The earnings per share (EPS) are forecasted to be RMB 1.39 for 2025, RMB 1.76 for 2026, and RMB 2.02 for 2027, indicating a strong growth trajectory [6] Strategic Initiatives - Geely is deepening its integration of AI technologies, which is expected to enhance product sales and reshape its valuation in the market [5] - The company has announced a comprehensive AI strategy that includes advanced driving systems and digital platforms, aiming to improve overall vehicle performance and customer experience [5]

Core Viewpoint - Geely emphasizes the importance of safety in vehicle manufacturing, stating that safety should be a standard rather than a luxury, especially in the wake of increased regulatory scrutiny in the industry following recent accidents [2][4]. Group 1: Safety Initiatives - Geely has opened three battery-related patents to enhance safety, including designs for battery pack protection and collision testing devices [2][7]. - The company has invested 20 billion to establish a comprehensive safety testing center, which will be open to the entire industry [3][11]. - Geely's new "ShenDun" short-blade battery is designed to be 40% shorter than traditional long-blade batteries, with a thickness of 18.2mm, providing higher stability and a safe driving range of over 1 million kilometers [3][10]. Group 2: Quality Control - Geely conducts a "President Quality Meeting" to rigorously assess new vehicle quality, with accountability resting on top management [3][9]. - The company has participated in over 21,000 traffic accident investigations to build a comprehensive database for improving vehicle safety [3][10]. Group 3: AI and Technology - Geely has introduced the concept of "Universal AI Safety Equality," aiming to enhance product safety through AI technology [4][6]. - The company is the first to launch an AI digital chassis, which can achieve precise torque vector control, improving vehicle stability [6][11]. Group 4: Market Performance - Geely's Galaxy model has seen significant success, with sales reaching 259,700 units in Q1 2025, a 214% year-on-year increase, accounting for nearly 37% of total sales [5][12]. - The company has restructured its R&D to focus on electric and intelligent vehicle development, aligning resources with strategic goals [14][15]. Group 5: Customer Engagement - Geely emphasizes the importance of understanding customer needs and pain points in product development, involving customers in the design process [15][16]. - The company aims to create high-value mid-to-high-end electric vehicles that address customer demands effectively [15][17].

Core Viewpoint - Geely Automobile has announced the acquisition of a 70% stake in six target companies for a cash consideration of RMB 29.2376 million, aiming to establish direct dealership channels for the Geely brand and reduce reliance on indirect subsidiaries [1][2] Group 1: Acquisition Details - The acquisition involves six target companies, including Lingji Maohua, Linyi Chunhua, Feixian Chunhua, Lingji Kaihua, Lingji Yuantong, and Lingji Jianhua [1] - The transaction is set to be completed by April 30, 2025, after trading hours [1] Group 2: Strategic Implications - The acquisition allows Geely to establish direct control over its dealership network, enhancing its ability to respond to market changes and consumer expectations [1][2] - By having its own dealership network, Geely can improve brand visibility and strengthen customer relationships in a competitive market [1] Group 3: Operational and Financial Benefits - The acquisition facilitates a comprehensive analysis of the entire operational chain of the Geely brand, covering R&D, production, marketing, and sales [2] - It is expected to enhance operational efficiency, stimulate innovation, and strengthen the group's competitive advantage [2] - The move will significantly reduce ongoing related party transactions with Geely Holding Group, simplifying financial interactions and improving transparency [2]

Financial Performance - The company's revenue for 2024 reached RMB 240.19 billion, a 34% increase from RMB 179.20 billion in 2023[11] - Profit attributable to equity holders increased by 213% to RMB 16.63 billion, compared to RMB 5.31 billion in the previous year[27] - The total assets of the company grew by 19% to RMB 229.39 billion, up from RMB 192.60 billion in 2023[23] - The basic earnings per share rose to RMB 163.80, a 219% increase from RMB 51.36 in 2023[23] - Net profit for 2024 was RMB 16.8 billion, reflecting a 240% year-on-year growth, while profit attributable to equity holders was RMB 16.63 billion, up 213%[31] - The total revenue of the group increased by 34% year-on-year to RMB 240.2 billion, driven by sales growth and product structure optimization[50] - The company reported a profit attributable to shareholders of RMB 16.63 billion for 2024, a 213% increase year-on-year, with diluted earnings per share of RMB 1.63[54] Sales and Market Performance - The total number of vehicles sold in 2024 was 2,176,567, representing a 32% year-on-year increase[28] - The wholesale volume in China increased by 27% to 1,762,045 vehicles, while export wholesale volume surged by 57% to 414,522 vehicles[28] - The total sales volume for the group reached 494,440 units in 2024, representing an 80% year-on-year increase[29] - The luxury electric vehicle brand Zeekr delivered 222,123 units, marking an 87% year-on-year growth[29] - The proportion of new energy vehicle sales reached 41% in 2024, with total sales projected to reach 888,235 units in 2025, a 92% increase year-on-year[30] - The sales of plug-in hybrid vehicles surged to 4.83 million units, reflecting a year-on-year growth of 79.6%[47] - The total sales of the group in 2024 exceeded the adjusted annual target of 2 million units, achieving a historical high[50] - Sales in the Chinese market were 1,762,045 vehicles, up 27% year-on-year, with a market share of 7.8%, ranking third among domestic brands[52] - Overseas market sales increased by 57% year-on-year to 414,522 vehicles, accounting for 19% of total sales[52] Product Development and Innovation - The company continues to focus on the development of new energy and intelligent vehicles, achieving significant breakthroughs in sales and exports[27] - The company launched new electric vehicle models based on the GEA architecture, contributing to strong market demand[29] - The company launched 9 new energy vehicle models in 2024, expanding its product matrix across different market segments[48] - Geely Galaxy launched new products including the Galaxy E5 and Starship 7, featuring advanced technologies such as the Shield Blade battery and 11-in-1 intelligent electric drive[98] Financial Management and Capital Expenditure - The company maintained a capital debt ratio of 4.5%, down from 7.6% in the previous year[23] - The company plans a capital expenditure budget of approximately RMB 15 billion for 2025, focusing on new vehicle models and smart technology development[61] - The total capital expenditure for the company in 2024 was RMB 13.3 billion, remaining within the budget of RMB 15 billion[123] Strategic Initiatives and Acquisitions - The company is focusing on green methanol and hydrogen-electric vehicles as part of its strategy to align with China's green energy transition goals[37] - The company established Horse Powertrain with Zhejiang Geely Holding Group and Renault, holding 33%, 17%, and 50% stakes respectively[67] - The company agreed to acquire approximately 11.3% of ZEEKR's issued share capital for USD 806.1 million (approximately RMB 5.9 billion) to strengthen its strategic influence[76] - The company completed the acquisition of additional equity in Zeekr for a settlement amount of USD 806.1 million (approximately RMB 5.9 billion) in 2024[123] Research and Development - Research and development expenses for 2024 reached RMB 10.41924 billion, a 33% increase compared to RMB 7.809997 billion in 2023[89] - The company has made significant advancements in battery technology, including the development of new battery types to enhance safety[38] Corporate Governance and Management - The company emphasizes high standards of corporate governance and compliance with the Hong Kong Stock Exchange's corporate governance code, with adherence to most provisions except for specific clauses[146] - The management team includes experienced professionals with backgrounds in finance and management, ensuring effective decision-making and strategic direction[148] - The board consists of six executive directors and five independent non-executive directors, ensuring at least one has appropriate professional qualifications in accounting or finance[166] Sustainability and ESG Commitment - The company is committed to environmental, social, and governance (ESG) measures, with a report to be published alongside the annual report for the year ending December 31, 2024[146] - The company has established a comprehensive risk management strategy to mitigate foreign exchange risks, including entering into several foreign currency forward contracts[121] Employee and Management Changes - The total number of employees increased to approximately 64,000, up from 60,000 in 2023[125] - The management team is focused on overall performance and market conditions for employee compensation reviews[125] - Mr. Mao Jian Ming, with rich experience in overseas asset investment and mergers, joined the group as an executive director on July 12, 2024[133] Future Outlook - The company aims to achieve a sales target of 2.71 million vehicles in 2025, representing an increase of approximately 25% compared to the total sales achieved in 2024[118] - The company plans to further expand its market presence by establishing local assembly plants in Nigeria, Ghana, Cambodia, and Egypt, with plans for more countries[110]