Core Insights - Geely Automobile Holdings Limited has completed the privatization and merger of ZEEKR Intelligent Technology Holding Limited, marking a new phase in Geely's "One Geely" strategy with ZEEKR becoming a wholly owned subsidiary and delisted from the New York Stock Exchange [1] Group 1: Financial Performance - Geely Auto achieved cumulative vehicle sales of 2.788 million units from January to November 2025, reaching 93% of its full-year target of 3 million units [2] - Revenue for the first three quarters reached $34.04 billion, reflecting a 26% year-on-year increase, while core net profit attributable to shareholders surged 59% to $1.51 billion [2] - Cost efficiency improved with management, R&D, and sales expense ratios declining to 1.8%, 6.1%, and 5.7% respectively [2] Group 2: ZEEKR Brand Positioning - ZEEKR is positioned as a premium intelligent EV brand with an average selling price of nearly $42,600 per vehicle [3] - The brand will operate independently post-integration while leveraging Geely's resources and supply chain [3] - Models like ZEEKR 009, ZEEKR 9X, and Lynk & Co 900 have increased Lynk & Co's weighted average selling price to over $28,400, enhancing Geely's overall product mix [3] Group 3: Technological Advancements - ZEEKR's SEA (Sustainable Experience Architecture) platform and advanced intelligent driving system will be integrated with Geely's R&D ecosystem, strengthening the group's capabilities in smart mobility and next-generation automotive technologies [4]

Core Viewpoint - ZEEKR Intelligent Technology Holding Limited's Q3 earnings were disappointing, leading to a downgrade to a "Hold" rating due to a loss of market share in China and slower growth in delivery numbers [1]. Financial Performance - The company reported slower growth in delivery numbers, which is a significant factor contributing to its loss of market share in China [1]. Market Position - ZEEKR is experiencing challenges in maintaining its market share within the competitive landscape of the Chinese automotive industry [1].

Financial Data and Key Metrics Changes - ZEEKR Group achieved total sales of 500,000 vehicles in 2024, with a 46.9% year-over-year increase in total revenue reaching RMB75 billion [5][23] - Vehicle revenue grew by 63% year-over-year, totaling RMB55 billion, while vehicle gross margin improved to 17.3% in Q4 and 15.6% for the full year [6][24] - The net loss decreased from RMB82.6 billion in 2023 to RMB57.9 billion in 2024, marking a 30% year-over-year decline [26] - Free cash flow for 2024 reached RMB1.5 billion, setting a record high [27] Business Line Data and Key Metrics Changes - The ZEEKR brand delivered over 222,000 vehicles in 2024, an 87% year-over-year increase, making it the best-selling premium battery electric vehicle brand in China [6][22] - Lynk & Co brand delivered 280,000 units, a nearly 30% year-over-year increase, achieving the highest sales in its history [5][6] - The average selling price for the ZEEKR brand is close to RMB300,000, while Lynk & Co's average selling price reached over RMB200,000 [9][11] Market Data and Key Metrics Changes - ZEEKR Group aims to deliver 710,000 vehicles in 2025, with a target of 40% delivery growth [7][29] - The company plans for around 10% of annual sales to come from international markets in 2025 [16] - The Lynk & Co brand's new energy vehicle segment showed a rapid growth with over 58% penetration rate [11] Company Strategy and Development Direction - ZEEKR Group aims to become the world's leading premium new energy vehicle group with annual sales of 1 million units within two years [7] - The company plans to launch three new models for the ZEEKR brand and two for the Lynk & Co brand in 2025 [10][12] - The integration of Lynk & Co and ZEEKR brands is expected to enhance operational efficiency and reduce costs [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges intense competition in the Chinese energy vehicle market and plans to leverage synergies from the integration of Lynk & Co and ZEEKR [44][45] - The company is confident in achieving its sales targets backed by improved manufacturing efficiencies and gross margin [58] - Management expects to maintain a vehicle margin of around 15% for the full year 2025 [30] Other Important Information - R&D expenses for 2024 reached RMB9.7 billion, with a focus on improving operational efficiency [24] - The company aims to reduce R&D expense ratio to around 6% and SG&A ratio to around 8% in the next two years [30][31] - ZEEKR Group is the only company in the industry with full stack in-house development capabilities across various technological domains [13] Q&A Session Summary Question: What are the conditions for breakeven in 2025? - Management highlighted the importance of controlling costs and integrating Lynk & Co to achieve breakeven, while acknowledging market conditions are unpredictable [41][44] Question: What is the outlook for 2026? - Management aims to create a luxury brand group selling close to 1 million cars globally in the luxury new energy vehicle sector by 2026 [45] Question: How will the new models stand out in a crowded market? - The company plans to equip new models with advanced technologies and maintain competitive pricing to differentiate them [65][66] Question: What is the progress on autonomous driving technology integration? - Both brands will share a unified ADAS solution, with plans to integrate technologies as soon as possible [72][73] Question: Will Lynk & Co adopt ZEEKR's super electric hybrid technology? - Currently, there are no plans for Lynk & Co to use this technology, but both brands will share components for efficiency [76] Question: What is the current status of the export business? - The company targets that overseas sales will make up over 10% of global sales performance in 2025 [81] Question: What is the expected gross margin for Q1 2025? - Management targets a vehicle business gross margin of 15% for Q1 2025, with improvements expected from synergies [86][90]