Core Viewpoint - Chery has faced various challenges and opportunities in its journey, including struggles with profitability and market positioning, but is now poised for growth with a potential IPO and a shift towards electric vehicles. Group 1: Company History and Development - In 2001, Anhui Automotive Parts Co., Ltd. transferred 20% of its shares (valued at 3.5 billion) to SAIC Group, rebranding as "SAIC Chery" to gain manufacturing qualifications [1] - Chery became the first domestic brand to exceed cumulative sales of 1 million vehicles in 2007 [4] - Chery attempted to go public in 2004 but failed due to complex shareholding issues [3] - From 2018 to 2020, Chery struggled with losses and marginal profits, failing to meet the profitability requirements for A-share and Hong Kong listings [6] Group 2: Recent Developments and IPO Attempts - On February 28, 2025, Chery submitted its IPO application to the Hong Kong Stock Exchange, but faced delays and challenges in the approval process [7][8] - The IPO aims to raise between 1.5 billion to 2 billion USD, but the application was at risk of expiration due to late receipt of necessary regulatory approvals [7] Group 3: Sales and Market Performance - In 2023, Chery's passenger car sales revenue was heavily reliant on fuel vehicles, with 94.8% of revenue coming from this segment [11] - By Q1 2025, the revenue from fuel vehicles was 429.7 billion, while new energy vehicles accounted for 186.7 billion, representing a 30.3% share [12] - Chery's overseas sales have been strong, with exports leading among Chinese brands for 22 consecutive years, and in 2023, overseas sales reached 745.3 billion, accounting for 49.3% of total passenger car revenue [18] Group 4: Financial Performance - In 2024, Chery's revenue was 2,699 billion, a 65.4% increase year-on-year, but the net profit margin decreased to 5.35% [24] - The operating cash flow for 2024 was 449 billion, reflecting an 80.1% increase [25] - Chery's total assets and liabilities at the end of 2024 were 2,140 billion and 1,881 billion respectively, resulting in a high asset-liability ratio of 87.9% [28] Group 5: Strategic Insights - Chery's strategy has focused on cost-saving and scaling, with a low gross profit margin of 13.5% in 2024 [22] - The company has maintained a high overseas sales ratio while keeping administrative costs lower than competitors like NIO and Li Auto [24] - Chery's investment in R&D has increased from 36 billion in 2022 to 92 billion in 2024, although it remains relatively low compared to industry peers [24]