Xin Lang Cai Jing·2025-05-09 13:22Core Viewpoint - Geely Auto plans to acquire all outstanding shares of Zeekr at a price of $2.57 per share, marking a significant strategic shift as it aims to consolidate its brands and resources under the "One Geely" initiative [1][2][15]. Group 1: Strategic Moves - The acquisition of Zeekr is part of Geely's broader strategy to streamline its operations and address internal inefficiencies, as highlighted in the "Taizhou Declaration" [16][19]. - Geely's chairman Li Shufu expressed that the urgency of this move reflects deep concerns about the company's future amidst a rapidly changing external environment [2][14]. Group 2: Market Context - Zeekr, which went public on May 10, 2024, became the fastest IPO among Chinese electric vehicle manufacturers, achieving significant sales milestones [5][8]. - Despite initial success, Zeekr faced intense competition from new entrants like Xiaomi, which launched the SU7, significantly impacting Zeekr's market position [9][21]. Group 3: Financial Performance - Zeekr's revenue grew from 6.528 billion yuan in 2021 to 51.67 billion yuan in 2023, with a notable increase in gross margin from 1.8% to 15% over the same period [8]. - However, following its IPO, Zeekr's stock price fell sharply, indicating market volatility and investor concerns about its long-term viability [12][13]. Group 4: Competitive Landscape - The competitive landscape for electric vehicles has intensified, with Zeekr struggling to maintain its market share against rivals like Xiaomi and others [10][22]. - Geely's strategy of launching multiple brands and models has led to internal competition, complicating Zeekr's market strategy and brand positioning [17][19].