GEELY AUTO(HK:00175) 3 6 Ke·2025-12-24 01:32Core Viewpoint - Polestar has received a significant financial lifeline of approximately 6.3 billion yuan, primarily from its major shareholder Geely, to address its ongoing financial struggles and low sales performance in China [1][2]. Financial Situation - Polestar's cash reserves were reported at 9.95 billion yuan as of the end of Q3, indicating a critical need for funding to sustain operations [4][5]. - The company experienced a net loss of 15.58 billion yuan in the first three quarters of the year, a 79.7% increase compared to the previous year [4][5]. - Despite a 49% year-on-year revenue growth to 21.7 billion yuan, the gross margin plummeted to -34.5%, significantly lower than the previous year's -2.1% [4][5]. Sales Performance - In the first nine months of the year, Polestar's global sales reached 44,482 vehicles, marking a 36.5% increase year-on-year. However, in China, only 163 vehicles were sold in the first ten months, averaging 16 vehicles per month [2][4]. - The company's stock price has dropped approximately 57% since the beginning of the year and over 95% since its NASDAQ debut in 2021 [6][8]. Strategic Adjustments - Polestar is shifting its focus from the Chinese market to Europe, where about 75% of its sales are generated, and has begun closing its physical stores in China to adopt an online sales model [15][16]. - The company aims to leverage its high-end positioning and European market strengths, particularly with its Nordic design and Volvo safety credentials [18]. Geely's Support - Geely has consistently provided financial support to Polestar, including a recent 6 billion yuan loan and previous investments, indicating a long-term commitment to the brand [2][11]. - The relationship between Geely and Polestar is strengthened by their shared history with Volvo, which has facilitated resource sharing and technological support [9][11].