Core Viewpoint - Geely Auto Holdings plans to acquire all issued shares of Zeekr Intelligent Technology, leading to Zeekr's privatization and delisting from the NYSE within a year of its IPO [2][6][19]. Group 1: Company Actions and Market Reactions - Following the announcement, Zeekr's stock surged over 11% in pre-market trading, closing with an 11.51% increase on May 7, while Geely's stock rose by 4.17% [2]. - The decision to privatize Zeekr is seen as a significant move for Geely, reflecting a strategic focus on the automotive core business and resource efficiency [5][8]. Group 2: Strategic Context - The privatization aligns with the "Taizhou Declaration," which emphasizes strategic focus, integration, and collaboration within Geely's automotive operations [6][8]. - The timeline of events shows a series of strategic maneuvers, including the initial public offering of Zeekr in May 2024 and subsequent restructuring efforts to optimize the ownership structure of Zeekr and Lynk & Co [8][9]. Group 3: Financial Performance and Challenges - Since its establishment, Zeekr has faced significant financial losses, with net losses reported at 4.514 billion, 7.655 billion, 8.264 billion, and 5.79 billion yuan from 2021 to 2024 [23]. - Despite a 25% year-on-year increase in sales in Q1 2025, Zeekr's performance remains below expectations, achieving only 17.2% of its annual sales target in the first four months of the year [24][26]. Group 4: Future Leadership and Structure - The privatization raises questions about future leadership within Geely, particularly regarding who will steer the newly integrated automotive group post-privatization [33][34]. - The integration of Zeekr into Geely is expected to enhance operational efficiency and cost optimization across various brands under the Geely umbrella [31].

Core Viewpoint - Geely Auto announced a non-binding offer to privatize Zeekr, aiming to acquire all outstanding shares and American depositary shares, which will make Zeekr a wholly-owned subsidiary of Geely Auto and delist from the NYSE [1][3]. Group 1: Geely's Strategic Moves - The acquisition is part of Geely's "Taizhou Declaration," which emphasizes maintaining close communication with international capital markets [1]. - Geely holds approximately 65.7% of Zeekr's total issued share capital, and the proposed acquisition price is $2.57 per share or $25.66 per American depositary share, representing a premium of about 13.6% over the last trading day [3]. - This move is a key step in Geely's strategic integration, following the transfer of 11.3% of Zeekr's shares from Geely Holding to Geely Auto [3]. Group 2: Implementation of the Taizhou Declaration - The Taizhou Declaration, released in September 2024, marks a new phase of strategic transformation for Geely, focusing on five major initiatives: strategic focus, integration, collaboration, stability, and talent [5]. - Geely plans to gradually divest non-core businesses while integrating brands like Radar and Lynk & Co with Geely Auto, and Zeekr with Lynk & Co [5]. - The goal is to enhance competitiveness and create long-term value by focusing on the automotive core business and accelerating the transition to electric and intelligent vehicles [5]. Group 3: Synergies from Brand Integration - Prior to Geely's privatization of Zeekr, Zeekr had already completed its integration with Lynk & Co, with Zeekr holding 51% of Lynk & Co's shares [6]. - The integration is expected to reduce procurement costs by 5%-8%, improve capacity utilization by 3%-5%, and lower R&D expenses by 10%-20% through collaborative efforts [6].

Core Viewpoint - Geely Automobile Holdings Limited plans to acquire all issued shares of Zeekr Intelligent Technology Co., Ltd, aiming for a complete merger, enhancing its position in the smart electric vehicle sector [1] Group 1: Acquisition Details - Geely currently holds approximately 65.7% of Zeekr's shares, and upon completion of the transaction, Zeekr will be fully integrated into Geely [1] - As part of the strategic framework of the "Taizhou Declaration," Geely announced an optimization of the equity structure of Zeekr and Lynk & Co, involving a 9 billion yuan acquisition of 50% equity in Lynk & Co and a 367 million yuan subscription for additional registered capital [3] - After the completion of the transaction, Zeekr will own 51% of Lynk & Co, while Geely will retain 49%, making Lynk & Co a non-wholly-owned subsidiary of Zeekr [3] Group 2: Strategic Implications - The acquisition is a significant step to implement the "Taizhou Declaration," focusing on the automotive core business, improving resource utilization efficiency, and deepening brand synergy [3] - Geely aims to enhance its global competitiveness in the smart electric vehicle sector through this integration, promoting internal resource consolidation and cost reduction [3][4] - The brands under Geely, including Zeekr as a global luxury tech brand and Lynk & Co as a high-end new energy brand, will seek collaborative development across various aspects such as technology, product, supply chain, and international market expansion [3] Group 3: Leadership Statements - Geely's chairman, Li Shufu, emphasized the need to adapt to market competition and complex economic conditions, focusing on integrating automotive business and enhancing innovation and profitability [4] - The company will maintain close communication and cooperation with the U.S. and international capital markets [4] - Geely will hold a Q1 2025 earnings release conference on May 15 to provide further updates on its business developments [4]