Core Viewpoint - Geely Group's recent decision to privatize Zeekr indicates a strategic shift aimed at addressing complex market conditions and internal development needs, marking a new phase of integration and transformation for the company [3][9]. Group 1: Privatization and Strategic Shift - On May 7, Geely submitted a non-binding offer to privatize Zeekr, intending to acquire all issued and outstanding shares and American depositary shares [3]. - The move comes less than a year after Zeekr's listing in the U.S., reflecting Geely's response to external uncertainties and the need for internal strategic focus and resource integration [3][9]. - Geely's previous strategy included merging Lynk & Co with Zeekr to strengthen the latter, but the current privatization suggests a more severe strategic assessment [3][4]. Group 2: Market Performance and Challenges - Zeekr's market performance has not met expectations, with a projected delivery of 222,100 vehicles in 2024, falling short of targets [4]. - For 2025, Geely set a sales target of 710,000 vehicles for Zeekr, but early 2025 sales data indicates significant pressure to meet this goal [4][9]. - Zeekr's stock price has been adversely affected by its sales performance, nearing "penny stock" levels [4]. Group 3: Implications of Privatization - Privatization may provide Zeekr with more operational flexibility, allowing for long-term strategic planning and technology development without the pressure of short-term market performance [6]. - The integration with Geely is expected to enhance collaboration in procurement and technology, potentially reducing losses through resource consolidation [6]. - Geely plans to redefine brand positioning post-privatization, with Zeekr aimed at the global luxury tech market, Lynk & Co as a global high-end new energy brand, and Geely Galaxy and China Star as mainstream brands [6]. Group 4: Technological and Structural Integration - Following the merger, Zeekr's technology assets, particularly in smart technology, will be integrated into Geely's research institute, enhancing Geely's R&D capabilities [7]. - Geely's ongoing integration efforts include the upgrade of the Galaxy brand and the incorporation of the Yizhen brand, indicating a continuous optimization of internal resource allocation [7]. - Discussions regarding the potential delisting of other subsidiaries like Lotus and Polestar are ongoing, with recent personnel adjustments signaling further integration efforts [7]. Group 5: Future Outlook and Challenges - Geely aims to achieve a sales target of 4.11 million vehicles by 2025 and 5 million by 2027, but faces challenges from increasing market competition and the need for continuous improvement in product, brand, and service quality [9]. - The integration process will involve addressing organizational adjustments, personnel integration, and cultural differences to ensure effective collaboration and synergy [9]. - The privatization of Zeekr represents a significant strategic decision for Geely, reflecting a cautious approach to risk and a commitment to optimizing operations for renewed growth [9].