Core Viewpoint - Chery Automobile has successfully listed on the Hong Kong Stock Exchange, marking a significant step in its internationalization journey and opening a new chapter for the company [1] Company Overview - Chery Automobile designs, develops, manufactures, and sells a diverse and expanding range of passenger vehicles, including both fuel and new energy vehicles, under five brands: Chery, Jetour, Exeed, iCAR, and Zhijie [1] - According to Frost & Sullivan, Chery is the second-largest domestic passenger car company in China and the eleventh-largest globally based on projected sales for 2024 [1] Sales Growth - The company is expected to achieve a 49.4% year-on-year growth in passenger vehicle sales in 2024, leading the growth rate among the top 20 global passenger car companies [1] Market Position - Chery has achieved several notable milestones this year, including being the top exporter of Chinese automobiles, holding the highest market share in the SUV segment, ranking first in global growth among Fortune Global 500 companies, and leading in quality among domestic brands [1] Government Support - Central government initiatives, such as subsidies for new energy vehicles, export tax rebates, and diplomatic efforts (e.g., the Belt and Road Initiative), have facilitated Chery's accelerated overseas expansion [1] Historical Performance - Since 2003, Chery has maintained its position as the top exporter of Chinese passenger vehicles for 22 consecutive years, highlighting its sustained global competitive advantage [1] IPO Details - The IPO attracted 13 cornerstone investors, including well-known institutions, upstream and downstream enterprises, and local governments, with total subscriptions amounting to $587 million (approximately HKD 4.573 billion) [2] - Notable investors include state-owned fund Jingquan Shanrui, Hillhouse Capital, and various A-share companies participating through their subsidiaries [2] Future Plans - The funds raised from the IPO will be directed towards research and development, electric vehicle upgrades, and overseas expansion, indicating the company's ambition to penetrate the global market [1]

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]