Core Viewpoint - Chery Automobile has officially launched its Hong Kong IPO, aiming to issue approximately 297 million H-shares and raise up to HKD 9.14 billion, potentially becoming the largest IPO of a car company on the Hong Kong Stock Exchange in 2025 [1][3]. Company Overview - Chery Automobile, established in 1997 and headquartered in Wuhu, China, designs, develops, manufactures, and sells a diverse range of passenger vehicles, including both fuel and new energy vehicles, catering to the evolving preferences of domestic and international markets [3]. - The company operates five major automotive brands: Chery, Jetour, Exeed, iCAR, and Zhiji, each with unique positioning and aesthetic recognition, covering various segments with significant growth potential [3][4]. Market Strategy - Chery's multi-brand strategy has achieved significant success, driven by a deep understanding of market segmentation and a three-dimensional framework of "precise positioning + technological synergy + ecological diversification," allowing it to cover a price range from CNY 50,000 to CNY 500,000 [4][5]. - The brand matrix operates like interlocking gears, with each brand occupying a unique market segment while collectively driving overall growth, avoiding internal competition and saturating target markets [5]. Brand Performance - The main brand targets the mass and family user segments, with a dual-line layout through the Arrizo sedan series and the Tiggo SUV series, achieving over 1.52 million cumulative sales in 2024 and a compound annual growth rate (CAGR) of 36.9% from 2022 to 2024 [5][7]. - Jetour has rapidly reached a milestone of 1 million vehicles since its launch in 2018, with a projected sales volume of over 530,000 units in 2024 and a CAGR of 80.0% from 2022 to 2024 [7]. - The Exeed brand aims for high-end positioning, achieving sales of 130,000 units in 2024 with a CAGR of 69.7% over the past three years, focusing on "new luxury" through advanced technology [7][8]. - iCAR and Zhiji brands target the young and high-end intelligent markets, respectively, with iCAR projected to sell over 60,000 units in 2024 and Zhiji achieving sales of 38,500 units [8]. Technological Synergy - Chery's success is underpinned by a "technology sharing, brand differentiation" strategy, allowing for cost-effective R&D while maintaining brand uniqueness [9]. - The Kunpeng power system serves as the core of cross-brand collaboration, enabling shared technology across various vehicle types, enhancing overall competitiveness [9][11]. Financial Performance - From 2022 to 2024, Chery's revenue grew from CNY 92.62 billion to CNY 269.9 billion, with a CAGR of 70.7%, and net profit increased from CNY 5.81 billion to CNY 14.33 billion, reflecting a CAGR of 57.1% [14]. - In Q1 2025, the company reported revenue of CNY 68.22 billion, a year-on-year increase of 24.2%, and a net profit of CNY 4.65 billion, up 71.5% [14]. Global Expansion - Chery has established a global R&D, production, and sales network, with overseas market revenue accounting for 37.4% in 2024, enhancing its ability to mitigate risks from single markets [14][15]. - The company has 1,075 overseas dealers, ranking among the top Chinese independent passenger vehicle brands, benefiting from localized operations [15]. Strategic Insights - Chery's multi-brand strategy exemplifies a successful model for the Chinese automotive industry, transitioning from "incremental competition" to "stock game" through precise positioning and technological collaboration [17]. - The brand matrix not only demonstrates past success but also serves as a foundation for future growth, positioning Chery as a leader in the evolving automotive landscape [16][17].