Core Viewpoint - Geely Holding Group announced the formal signing of a merger agreement between Geely Auto and Zeekr Technology, with Geely Auto set to acquire all Zeekr shares not already held, allowing Zeekr shareholders to choose cash or Geely Auto shares as compensation [1] Group 1: Merger Details - Geely Auto will acquire all outstanding shares of Zeekr, excluding those already owned by Geely [1] - Zeekr shareholders have the option to receive either cash or Geely Auto shares as payment for their shares [1] Group 2: Strategic Implications - The merger is part of Geely Holding's strategic transformation, as outlined in the "Taizhou Declaration" released last year [1] - The strategic integration is expected to significantly impact the collaborative development of various brands, innovation capabilities, profitability, and sustainable development potential [1] - This move aims to further promote high-quality development for Geely Holding Group and create greater value for users and investors [1] Group 3: Previous Proposals - On May 7, Geely announced a non-binding offer to privatize Zeekr, proposing to acquire all issued and outstanding Zeekr shares and American Depositary Shares at a price of $25.66 per share [1] - Following this proposal, Zeekr stated that no decision had been made regarding Geely's privatization offer [1]

Core Viewpoint - The announcement details a significant ownership change in Chengzhi Co., with the indirect controlling shareholder, Qingdao Haikong Investment Holdings Co., transferring 100% of its shares in Chengzhi to its wholly-owned subsidiary, Dongjiakou Group, which will indirectly acquire 30.83% of Chengzhi's shares [1][2]. Group 1: Ownership Change - Dongjiakou Group has signed an agreement to acquire 100% of Qingdao Haikong Investment Holdings Co. without any monetary compensation, only incurring necessary fees as per national regulations [2]. - Prior to this acquisition, Dongjiakou Group did not hold any shares in Chengzhi, while Chengzhi Kairong, the current controlling shareholder, holds 375 million shares, representing 30.83% of the total share capital [1][2]. Group 2: Business Operations - Chengzhi Co. operates in industrial gases, basic chemical raw materials, semiconductor display materials, life science products, and industrial hemp cultivation and processing [2]. - The company reported a revenue of 11.066 billion yuan and a net profit of 231 million yuan for the fiscal year 2024, marking a year-on-year increase of 29.98% [2]. Group 3: Strategic Integration - The acquisition aims to promote internal strategic integration within Haikong Group, transferring ownership of Haikong Investment Holdings to Dongjiakou Group [1][2]. - There is no indication of competitive conflict between the businesses of the acquirer and Chengzhi, ensuring no adverse effects on the company's operations or minority shareholders [3].

Core Viewpoint - Geely Automobile is confident in achieving or exceeding its annual sales targets, with a strong performance in Q1 2025, showcasing significant revenue and profit growth driven by improved profitability in new energy vehicles and effective cost control [2][3]. Financial Performance - In Q1 2025, Geely reported total revenue of 72.5 billion yuan, a year-on-year increase of 25%, and a net profit attributable to shareholders of 5.67 billion yuan, up 264% [2]. - The gross profit for Q1 reached 11.4 billion yuan, reflecting a 26% increase year-on-year, with a gross margin of 15.8%, up 0.2 percentage points from the previous year [2]. Sales and Market Strategy - Geely's Q1 sales reached 703,800 units, marking a historical high and a 48% year-on-year increase, achieving 26% of its annual target of 2.71 million units [3]. - The company plans to accelerate its product launch strategy, focusing on both fuel and new energy vehicles, with multiple new models set to be introduced in 2025 [3][4]. Product Development - Geely's new fuel vehicle, the fourth-generation Boyue L, has been launched with a price range of 92,900 to 119,900 yuan, emphasizing intelligent features [4]. - The Geely Galaxy brand aims to introduce five new products in 2025, including two SUVs and three sedans, targeting annual sales of one million units [4]. Cost Control and Efficiency - Geely has implemented significant cost control measures, with sales and administrative expense ratios decreasing by 2.1 and 0.6 percentage points, respectively [2]. - The company has initiated a strategic integration process under the "Taizhou Declaration," focusing on brand, supply chain, and operational efficiencies, which has begun to yield positive results [6][9]. Brand Integration and Market Position - The merger of Zeekr and Lynk & Co has led to improved financial performance for Zeekr, with Q1 revenues of 22 billion yuan and a gross margin of 19.1% [6][7]. - The "One Geely" strategy aims to eliminate redundant investments and enhance operational efficiency, positively impacting the company's stock performance [8][9].

Core Insights - The core strategy of Geely Holding is focused on synergy and integration, aiming for significant cost savings in R&D and procurement, as well as a reduction in management and marketing expenses [2] - The recent acquisition of Zeekr by Geely has garnered strong support from shareholders, indicating a high level of confidence in the company's strategic adjustments [2][3] Financial Performance - In Q1 2025, Geely achieved total revenue of 72.5 billion yuan, a year-on-year increase of 25%, with net profit attributable to shareholders reaching 5.67 billion yuan, up 264% [2] - The total sales volume reached 704,000 units, representing a 48% increase year-on-year, significantly outperforming the industry average [2] - Sales of new energy vehicles (NEVs) were particularly strong, with cumulative sales of 339,000 units from the Galaxy, Zeekr, and Lynk & Co brands, marking a 135% increase [2] Brand Performance - The Galaxy series has entered a rapid growth phase, with Q1 sales nearing 260,000 units, a 214% increase year-on-year [3] - Zeekr achieved total sales of 114,000 units, with a 16.1% increase in vehicle sales revenue and a gross margin of 16.5% [3] - Lynk & Co's Q1 sales reached 73,000 units, a 19% increase, with strong market response to the Lynk 900 model [3] Technological Advancements - Geely is increasing its investment in the new energy sector, having integrated its battery business into a new entity to enhance technological competitiveness [3] - The launch of the "Qianli Haohan" intelligent safety driving system marks a significant advancement in AI and autonomous driving capabilities [5] Global Expansion - In Q1 2025, Geely exported approximately 90,000 vehicles, expanding its global sales network to 86 countries with over 900 service points [5] - The establishment of local production facilities in Egypt, Indonesia, and Vietnam is part of Geely's strategy to enhance brand recognition and reduce trade risks [6] Strategic Integration - The acquisition of Zeekr is a key move in Geely's strategic integration, expected to enhance R&D, management, and marketing efficiency by 15% to 20% [7] - The integration aims to optimize resource allocation across R&D, supply chain, and sales, thereby improving operational efficiency in a rapidly changing market [7]

Core 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].

Investment Rating - The report maintains a "Strong Buy" rating for Geely Automobile, expecting it to outperform the benchmark index by over 20% in the next six months [5][18]. Core Views - Geely Automobile has initiated a non-binding privatization offer for Zeekr at a premium of 13.6% over the last closing price, aiming to consolidate its high-end electric vehicle assets and enhance operational efficiency [2][8]. - The privatization is expected to significantly increase Geely's profits and long-term shareholder value, with projections indicating a 34.3% increase in net profit from the acquisition [8][9]. - The company is on track for a successful electric transformation starting in 2024, with further acceleration anticipated in 2025, supported by strategic brand integration [8][9]. Financial Summary - **Revenue Projections**: - 2024A: 240,194 million CNY - 2025E: 336,392 million CNY (34.03% YoY growth) - 2026E: 441,972 million CNY (40.05% YoY growth) - 2027E: 514,187 million CNY (31.39% YoY growth) [4][9] - **Net Profit Projections**: - 2024: 16,632 million CNY - 2025: 14,788 million CNY (-11.09% YoY) - 2026: 20,800 million CNY (40.66% YoY) - 2027: 25,699 million CNY (23.55% YoY) [4][9] - **Earnings Per Share (EPS)**: - 2024: 1.65 CNY - 2025: 1.47 CNY - 2026: 2.06 CNY - 2027: 2.55 CNY [4][9] - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio for 2025: 10.6x - Price-to-Book (P/B) ratio for 2025: 1.6x [4][9] Target Price - The target price range for Geely Automobile is set between 23.69 and 28.43 CNY, representing a potential upside of 42% to 70% from the current price of 16.78 CNY [5][8].

证 券 研 究 报 告 吉利汽车（00175.HK）重大事项点评 强推（维持） 启动极氪私有化，打造"一个吉利" 事项： ❖ 吉利汽车发布公告，宣布向极氪提交非约束性私有化要约，拟以2.566美元/18.5 元或 1.23 股新发行的吉利汽车股份收购每股极氪股份（以上两种方案股东可 选择，后同），或以 25.66 美元/185 元或 12.3 股新发行的吉利汽车股份收购每 股极氪 ADS。该报价较极氪最后一个交易日收盘价溢价 13.6%，较过去 30 个 交易日成交量加权平均价溢价 20%。目前，吉利汽车持有极氪 65.7%股权，若 私有化建议落实及完成，极氪将成为吉利汽车全资子公司并从纽交所退市。 评论： [ReportFinancialIndex] 主要财务指标 | | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | | 主营收入(百万元) | 240,194 | 336,392 | 441,972 | 514,187 | | 同比增速(%) | 34.03% | 40.05% | 31.39% | 16.34% | | 归母 ...

Summary of Conference Call Records Company and Industry Involved - The records focus on Geely Group and its subsidiary, Zeekr, within the automotive industry, particularly in the electric vehicle (EV) sector. Core Points and Arguments 1. **Strategic Integration Post-Announcement** Since the release of the "Taizhou Declaration" in September 2024, Geely Group has focused on "strategic integration and core business focus," completing significant measures such as brand and product line integration, smart driving technology and R&D system integration, and optimization of supply chain and procurement systems. The privatization of Zeekr is seen as a step to deepen the implementation of the "Taizhou Declaration" to better compete in the passenger car market [1][1][1]. 2. **Strengthening Competitive Position** Geely possesses strong manufacturing, R&D, and supply chain advantages. The "Taizhou Declaration" is expected to maximize these advantages, thereby providing greater assurance for Geely's market share [1][1][1]. 3. **Financial Implications of Privatization** The privatization of Zeekr is anticipated to avoid redundant investments and reduce internal brand positioning and resource allocation issues due to overlapping price segments. The clearer organizational structure is expected to enhance trust in the capital market. However, Geely may face some short-term financial pressure, as it holds approximately 65.7% of Zeekr shares, requiring a payment of about $2.566 per share, totaling approximately $2.24 billion (around 16.2 billion RMB). The company's cash and equivalents at the end of 2024 are projected to be 40.87 billion RMB, indicating that the financial pressure remains manageable [2][2][2]. 4. **Focus on Core Business Post-Privatization** Privatization is expected to help Zeekr distance itself from market noise and focus on cutting-edge technology. Previous market concerns regarding Zeekr's product positioning and resource allocation within the group have led to stock price volatility. Post-privatization, Zeekr is anticipated to concentrate on its core business and solidify its position as a leader in high-end smart electric vehicles [3][3][3]. Other Important but Potentially Overlooked Content - The strategic moves by Geely are part of a broader effort to enhance its competitive edge in the rapidly evolving EV market, which is characterized by intense competition and technological advancements. The emphasis on integrating various aspects of the business suggests a long-term vision for sustainable growth and market leadership.

Group 1 - Geely Automobile Holdings Limited plans to acquire all issued shares of Zeekr Intelligent Technology Co., indicating a complete merger if the transaction is completed [1] - This move is part of Geely Holding Group's implementation of the "Taizhou Declaration" strategy, focusing on the automotive core business and accelerating layout in the fields of new energy and intelligence [1][2] - The merger aims to enhance internal resource integration, improve R&D efficiency, reduce operational costs, and enhance user experience, positioning Geely for long-term sustainable development in the global new energy and intelligent competition [1][2] Group 2 - The global automotive industry is undergoing a profound transformation, with Geely Holding Group entering a new strategic phase defined by five core initiatives: strategic focus, integration, collaboration, stability, and talent [2] - In Q1 2025, Geely's sales reached 704,000 units, a 48% year-on-year increase, with new energy vehicle sales at 339,000 units, achieving over 50% penetration in the domestic new energy market [2] - The integration of Zeekr and Lynk & Co has shown initial success, with Q1 sales of 114,000 units for the combined brands, a 21% year-on-year increase, and a reduction in per-unit costs by over 20% [2] Group 3 - Post-merger, each brand will maintain clear market positioning and differentiated technology planning, with Zeekr positioned as a global luxury tech brand and Lynk & Co as a high-end new energy brand [3] - Geely Galaxy and China Star series will cover the mainstream market, providing diverse options for consumers [3] - The brands will collaborate in seven key areas, including vehicle architecture and electric drive systems, to enhance core competitiveness and market share [3] Group 4 - The merger will provide tangible benefits to users, including access to Zeekr's advanced technology across all Geely brands, improving overall product performance and user experience [4] - A unified charging system will address all charging needs, reducing user anxiety regarding energy replenishment [4] - Shared maintenance networks will offer standardized and convenient after-sales service experiences, enhancing user satisfaction [4]

所以，不管接受或是不接受，价格力，就是中长期内影响车企规模表现的最大α因素。 文 | 昭暄 这次上海车展释放的一个重要信息就是，随着国内新能源车供应链能力的整体外溢，这股势能已经影响 且渗透到了合资车企阵营中，在他们推出的最新车型里，我们其实能够很直观地感受到类似于以往新势 力般的品牌理念、产品表达、设计语言、功能逻辑配置等呈现形式及内容。 以此，合资车企们展现了他们意图反扑国内车市的姿态。 此外，上海车展所展现的另一个现象就是，各家车型的表现形式已经很难再构建差异化，意味着其呈现 的结果愈发趋于同质化，而在以产品展现为导向的市场环境下，品牌之间的区别或区隔也正变得越来越 模糊，且随着合资阵营的反扑，这种互相之间焦灼的竞争模式还会继续恶化。 从这个视角出发，在保证产品力的前提下，车企（尤其是大型车企集团）需要不遗余力地释放价格空 间，以此来扩充或是维持自身的市场份额。 在这种形势背景下，近期吉利汽车发布公告，其将所持有的吉利欣旺达的全部股权出售给吉利控股旗下 新成立的电池业务公司，以继续推进吉利系的战略整合及聚焦进程。 事实上，相比于这几年不断引领行业价格均线的比亚迪，与其规模体量相当的吉利控股（或吉利系品牌 ...