GEELY AUTO(HK:00175) Guan Cha Zhe Wang·2025-06-22 05:31Core Viewpoint - Geely has entered into a joint venture agreement with Renault, allowing Geely to access Brazil's largest automotive market and enhance its brand presence and market coverage in the region [4][5]. Group 1: Joint Venture Details - Geely, through its wholly-owned subsidiary GA(SGP), will contribute its entire issued share capital and cash to the joint venture in exchange for common shares, warrants, and convertible preferred shares [1]. - The ownership structure post-transaction will see Renault holding 73.57%, GA(SGP) 21.29%, GH(SGP) 5.11%, and an independent third party 0.03% of the joint venture [1]. - The CEO of the joint venture will be appointed by the board based on Renault's recommendation [1]. Group 2: Strategic Importance - The partnership with Renault allows Geely to leverage the established distribution infrastructure and extensive dealer network in Brazil, facilitating faster market share expansion [5]. - The collaboration began in August 2021, focusing on hybrid technology resource sharing and targeting China and South Korea as core markets [5][6]. - In January 2022, Geely's subsidiary CIL acquired a 34.02% stake in Renault Korea for 1.376 billion yuan, strengthening local cooperation [5]. Group 3: Future Developments - The joint venture HORSE Powertrain Limited, equally owned by Geely and Renault, is set to commence operations in May 2024, integrating 17 factories and 5 R&D centers with a revenue target of 15 billion euros [6]. - The first model from this collaboration, the new Renault Koleos, is expected to launch in South Korea in the second half of 2024, produced at the Busan factory [6]. - Geely's investment in Renault Brazil focuses on developing zero-emission and low-emission vehicles, aiming to expand in the Latin American market [6].