Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices involving Zeekr Intelligent Technology Holding Limited following allegations of inflated sales figures [1][2]. Group 1: Investigation Details - Pomerantz LLP is representing investors of Zeekr and is looking into whether the company and its officers engaged in fraudulent activities [1]. - The investigation was prompted by a Reuters article that reported on July 19, 2025, that Zeekr, along with another Chinese electric vehicle brand Neta, allegedly inflated sales figures to meet aggressive targets [2]. Group 2: Sales Practices - The Reuters report indicated that Zeekr arranged for vehicles to be insured before actual sales, allowing the company to record sales prematurely under Chinese registration practices [2]. - This practice was aimed at achieving monthly and quarterly sales targets, raising concerns about the legitimacy of reported sales figures [2]. Group 3: Market Reaction - Following the news of the investigation and allegations, Zeekr's American Depositary Receipt (ADR) experienced a decline, falling by $1.08 per share, or 3.59%, closing at $28.99 on July 21, 2025 [2].

Core Viewpoint - Geely's acquisition of Zeekr marks a strategic move towards the "One Geely" initiative, aiming to consolidate its operations and enhance competitiveness in the global electric vehicle market [1][5][15] Group 1: Acquisition Details - Geely will acquire 100% of Zeekr's issued shares, leading to Zeekr's delisting from the NYSE and becoming a wholly-owned subsidiary [1] - The acquisition price of $2.687 per share represents an 18.9% premium over the last closing price and a 25.6% premium over the 30-day volume-weighted average price [4] - Shareholders of Zeekr have the option to either cash out or exchange for Geely shares, providing flexibility for both short-term liquidity and long-term value [4] Group 2: Strategic Implications - The move is expected to simplify operations, unify strategic direction, enhance synergies, and reduce compliance burdens, ultimately improving efficiency and profitability [5][8] - Full ownership allows for systematic integration of resources across Geely's various brands, reducing redundancy and enhancing collaborative efforts in R&D, supply chain, and marketing [7][8] - The acquisition aligns Zeekr's technological advancements with Geely's strategic goals, ensuring cohesive development and innovation [8] Group 3: Market Position and Performance - Geely's sales reached 1.9317 million vehicles in the first half of 2025, with a significant increase in electric vehicle sales, reflecting strong market performance [10] - The company raised its annual sales target from 2.71 million to 3 million vehicles, indicating confidence in new model launches and market expansion [10] - The acquisition is seen as a pivotal moment for the Chinese automotive industry, signaling a shift from capital competition to efficiency competition [13][15] Group 4: Industry Impact - Geely's strategy may serve as a model for other automakers in the industry, promoting resource optimization and reducing wasteful competition [15] - The integration of Zeekr is expected to enhance Geely's valuation, transitioning it from a traditional automotive manufacturer to a growth stock in the smart electric vehicle sector [15]

Core Viewpoint - Chinese electric vehicle brands Neta and Zeekr have inflated sales figures through early booking practices, raising concerns about the integrity of their sales reporting and the overall health of the industry [1][5][10]. Company-Specific Summary - Neta has reportedly booked early sales of at least 64,719 cars from January 2023 to March 2024, which constitutes more than half of its reported sales of 117,000 vehicles over the same period [2][19]. - Zeekr, owned by Geely, utilized a similar method to inflate sales figures in late 2024, particularly in Xiamen, through its main dealer [3][28]. - Neta's sales peaked in 2022 at 152,000 vehicles but fell to 87,948 in the following year, with the company facing financial difficulties leading to bankruptcy proceedings for its parent company [24][27]. Industry Context - The practice of booking vehicles as "zero-mileage used cars" has emerged due to intense competition and a price war in the Chinese auto market, which is characterized by chronic overcapacity [4][5]. - State media and government bodies are increasingly scrutinizing these practices, with plans to regulate the sale of zero-mileage cars and prevent reselling within six months of registration [6][17]. - Analysts have raised concerns about the impact of these practices on the industry's credibility and the potential for misleading financial reports [13][14].

Group 1: Industry Trends - The Chinese automotive market is transitioning from incremental growth to stock competition over the next two to three years, with new energy vehicles reshaping the market landscape [1] - The competition is evolving from initial disorder and fragmentation to high-quality, comprehensive competition, emphasizing the importance of strategic planning, cost control, and continuous technological innovation for companies [1] Group 2: Company Developments - Geely Holding Group announced the completion of the merger agreement between Geely Auto and Zeekr, with Geely Auto fully acquiring Zeekr [3] - The merger aims to address previous issues of resource duplication and optimize overall operational efficiency, as the multi-brand strategy has shown increasing pain points in the context of stock competition [2] - Post-merger, Geely's brand matrix will focus on distinct market segments: Zeekr on luxury and intelligent pure electric vehicles, Lynk & Co on youth-oriented and dynamic segments, Galaxy on mainstream high-value new energy, and the China Star series on energy-efficient and intelligent fuel vehicles [2][3] Group 3: Strategic Insights - The merger is a key step in Geely's strategy to return to a unified brand approach, enhancing its global competitiveness in the smart new energy sector [3] - The complementary strengths of Zeekr's luxury electric vehicle DNA and Geely's mainstream market experience are expected to create strong synergies in technology development and supply chain sharing [3]

Core Viewpoint - The valuation of Zeekr (JK.NYSE) has decreased by nearly half in less than two and a half years, with Geely Automobile (00175.HK) announcing a privatization deal costing approximately $2.4 billion [1][2]. Valuation Decline - Geely's acquisition price for Zeekr shares is set at $2.687 per share, translating to a total market value of about $6.88 billion, which is close to a "halving" from the $13 billion valuation during the A-round financing in February 2023 [2][4]. - The A-round financing raised $750 million at a post-money valuation of $13 billion, with participation from notable investors including Mobileye and CATL [2][3]. Industry Context - The global automotive market, particularly in the electric vehicle sector, is experiencing intense competition, leading to downward pressure on valuations across the industry [1][4]. - Analysts suggest that companies need to quickly integrate resources and avoid redundant investments to remain competitive [1][8]. Privatization Rationale - Geely's decision to privatize Zeekr reflects a shift from expansion to resource integration and cost reduction, aiming to eliminate complexities associated with minority shareholders [6][8]. - The privatization will allow Zeekr to become a wholly-owned subsidiary of Geely, enhancing decision-making efficiency and resource allocation [6][7]. Strategic Advantages - Full ownership of Zeekr will facilitate a unified strategic deployment across Geely's brands, improving collaboration and reducing conflicts with minority shareholders [7][8]. - The move is expected to maximize Zeekr's contribution to market share and profitability, allowing for more agile responses to economic and market challenges [7][8].

Core Viewpoint - The valuation of Zeekr (JK.NYSE) has decreased by nearly half in less than two and a half years, prompting Geely Automobile (00175.HK) to announce a privatization plan for Zeekr at a cost of approximately $2.4 billion [1][2][8]. Group 1: Valuation and Financial Details - Geely's acquisition will involve buying all remaining shares of Zeekr, with shareholders given the option of cash or shares as compensation, totaling around $2.4 billion (approximately 172 million RMB) [2]. - Geely currently holds 62.8% of Zeekr, and the privatization price is set at $2.687 per share, which is significantly lower than the $29.76 closing price on July 17, indicating a drastic drop in valuation [2][4]. - Zeekr's valuation fell from $13 billion during a February 2023 funding round to approximately $6.88 billion based on the privatization price, reflecting a near "halving" of its value [2][4]. Group 2: Market Context and Strategic Considerations - The global automotive market, particularly in the electric vehicle sector, is experiencing intense competition, leading to downward pressure on valuations across the industry [1][6][8]. - The decision to privatize is seen as a shift from expansion to resource integration, aimed at reducing costs and eliminating complexities associated with minority shareholders [6][8]. - Full ownership of Zeekr will enhance decision-making efficiency and resource allocation, allowing for a unified strategy across Geely's brands [6][7]. Group 3: Future Implications - The privatization is expected to streamline operations and improve competitive positioning in the global electric vehicle market, as it will eliminate potential conflicts with minority shareholders [6][7]. - Geely aims to create a unified platform for operations, which is anticipated to lead to better synergy between Zeekr and other Geely brands, ultimately enhancing overall operational efficiency [6][7][8].

Core Viewpoint - Geely Holding Group announced the merger of Geely Automobile Holdings and Zeekr Intelligent Technology, aiming to enhance competitiveness and resource integration in the smart electric vehicle sector [2][3][4] Group 1: Merger Details - Geely will acquire all outstanding shares of Zeekr at a price of $2.687 per share, representing a premium of over 4% compared to the previously announced acquisition price [4] - The merger is part of Geely's strategy to deepen resource integration and improve overall competitiveness, aiming to create greater value for shareholders [2][3] Group 2: Strategic Goals - The merger aims to strengthen Geely's global competitiveness and growth in the smart electric vehicle market by combining Zeekr's luxury electric vehicle advantages with Geely's mainstream market foundation [3][4] - Post-merger, Geely will cover various powertrain forms, including fuel, pure electric, plug-in hybrid, and hydrogen electric vehicles, enhancing its market positioning across different segments [3][4] Group 3: Market Outlook - Market analysts view the merger positively, highlighting potential synergies and improved brand positioning under a unified platform, which could enhance competitiveness across Geely's four brands [5][6] - The merger is seen as a strategic move to adapt to the evolving automotive market, focusing on high-quality competition and resource optimization [6][7] Group 4: Financial Performance - Geely's total sales reached 1.9317 million units in the first half of the year, a 30% increase year-on-year, with new energy vehicle sales growing by 73% [9][10] - The company raised its annual sales target from 2.71 million to 3 million units due to strong performance in the first half [10] Group 5: Technological Advancements - Geely has made significant technological breakthroughs, including the launch of a unified intelligent safety driving system and the establishment of a new battery industry group [10] - The company is also expanding its technological reach into areas such as low-altitude economy and satellite operations, enhancing its appeal to investors [10]

Core Viewpoint - Geely Holding Group is advancing its "One Geely" strategy by signing a merger agreement with Zeekr to acquire all outstanding shares, aiming to enhance its global competitiveness in the smart electric vehicle sector [2][4]. Company Developments - Geely plans to pay approximately $2.399 billion (about 17.199 billion RMB) for the full privatization of Zeekr, which will become a wholly-owned subsidiary post-merger [4]. - The merger is expected to be financed through internal resources or debt [4]. - Geely's sales target for 2025 has been raised by about 11%, from 2.71 million to 3 million units, reflecting strong sales growth [3][15]. Market Positioning - The merger aims to combine Zeekr's strengths in the luxury electric vehicle market with Geely's established presence in the mainstream market, enhancing overall competitiveness and corporate value [5]. - Geely's CEO stated that the merger will create a win-win situation and drive superior development for the combined company [5]. Financial Performance - In the first half of 2025, Geely's total sales reached 1.4092 million units, a year-on-year increase of 47% [14]. - Zeekr's sales in the first half of 2025 were 90,700 units, a 3% increase year-on-year, while Lynk & Co's sales were 154,100 units, up 22% [16]. Strategic Integration - Following the "Taizhou Declaration," Geely is focusing on strategic integration across its business segments, including Zeekr and Lynk & Co, to enhance collaboration in technology, product development, and market expansion [5][6]. - The newly formed Zeekr Technology Group will aim to achieve an annual production and sales volume of one million units by the end of 2026 [6]. Product Development - Zeekr's product lineup includes several models, with an average vehicle price of nearly 300,000 RMB and a highest price close to 900,000 RMB, positioning it firmly in the high-end luxury market [18]. - The upcoming launch of the full-size ultra-luxury SUV, Zeekr 9X, is expected to further enrich the product matrix [17].

Company Overview - Zeekr Group is a leading premium new energy vehicle group headquartered in Zhejiang, China, under Geely Holding Group [2] - The company operates two brands, Lynk & Co and Zeekr, and aims to create a fully integrated user ecosystem with a focus on innovation [2] - Zeekr Group is developing its own software systems, e-powertrain, and electric vehicle supply chain, emphasizing values of equality, diversity, and sustainability [2] Financial Reporting - Zeekr Group will report its unaudited financial results for the second quarter ended June 30, 2025, before the U.S. markets open on August 14, 2025 [1]

Group 1 - BYD announced the launch of its car-to-phone connectivity feature across all its brands, compatible with major domestic smartphone brands [1] - Geely Auto signed a merger agreement with Zeekr, with Geely acquiring all remaining shares of Zeekr, offering shareholders cash or shares as compensation [1] - Mercedes-Benz announced the upcoming launch of its all-electric CLA model in China this fall, featuring locally developed driving assistance technology [1] - Aito's M8 electric version is set to launch in August, equipped with HUAWEI ADS 4 and a CATL 100 kWh battery [1] Group 2 - Zhijie Auto officially unveiled its new logo, symbolizing innovation and defiance of definitions [2] - Lantu Auto's legal department reported malicious rumors targeting the brand, leading to a police report and investigation into a specific brand's agency [2] - XPeng Huitian completed a $250 million Series B financing round to accelerate the development and mass production of its flying car [2] - Global sales of electric and plug-in hybrid vehicles increased by 24% year-on-year in June, reaching 1.8 million units [2] Group 3 - Tesla opened its first showroom in Mumbai, India, and announced the pricing for the Model Y, starting at approximately $69,757 [3] Group 4 - Nissan announced the closure of its Zama plant in Japan by the end of the 2027 fiscal year as part of a global restructuring plan [4] - General Motors plans to produce low-cost batteries at its Ultium Cells joint venture with LG Energy Solutions in the U.S. [4] - Volvo announced a one-time charge of approximately $1.2 billion due to U.S. tariffs and delays in launching key models [4] Group 5 - Renault Group appointed Duncan Minto as interim CEO, effective July 15, until a new CEO is officially appointed [5]