Core Insights - Chery Automobile successfully completed its IPO on September 25, 2025, raising approximately HKD 9.145 billion at an issue price of HKD 30.75, marking the largest IPO for a car company in the Hong Kong market in 2025 [1][5] - The journey to this IPO has been lengthy and complex, spanning 21 years with multiple setbacks and attempts [3][4] Historical Context - Chery's IPO ambitions began in 2004 but were hindered by complicated equity relationships with SAIC Motor Corporation, leading to delays [3] - In 2009, Chery sold a 20% stake for CNY 2.9 billion, signaling preparations for an IPO, but plans were again postponed in 2011 due to concerns over related party transactions [3][4] - A failed attempt to list its subsidiary Chery New Energy in 2016 further complicated its path to going public [4] Recent Developments - By 2025, Chery's financial performance had significantly improved, with projected revenues exceeding CNY 269.9 billion and net profits reaching CNY 14.3 billion, maintaining its position as the top exporter among Chinese independent passenger car brands for 22 consecutive years [5] - The company restructured its equity and organizational framework, introducing diverse investors and establishing a domestic business unit to enhance strategic focus and resource integration [5] Market Position and Future Outlook - The IPO attracted 13 cornerstone investors, raising USD 588 million, indicating strong market confidence in Chery's dual strategy of technology and international expansion [6] - Despite the successful listing, challenges remain, including a less than 30% revenue contribution from new energy vehicles and reliance on external partnerships for smart technology [6] - The company plans to allocate 35% of the raised funds for developing various passenger car models, 25% for next-generation vehicles and advanced technologies, and 20% for global expansion, aiming to leverage capital for a strategic push in smart and global markets [6][7]

Core Viewpoint - Chery Automobile successfully completed its IPO on the Hong Kong Stock Exchange, raising approximately HKD 9.145 billion, marking the largest IPO for a car company in the Hong Kong market in 2025, with an initial price increase of over 13% on the first day [1][6] Group 1: IPO Journey - Chery's IPO journey began in 2004 but faced multiple setbacks, including complex equity relationships with SAIC Motor Corporation that delayed its plans [3][4] - In 2009, Chery sold 20% of its shares for CNY 2.9 billion, signaling a potential preparation for an IPO, but the plan was postponed in 2011 due to "related party transaction issues" [4] - Attempts to list Chery New Energy through a backdoor listing in 2016 failed due to the complexity of the proposal and unclear policies regarding new energy vehicles [4][5] Group 2: Recent Developments - The successful IPO in 2025 was facilitated by Chery's improved financial performance, with revenues exceeding CNY 269.9 billion and net profits reaching CNY 14.3 billion in 2024 [6] - Chery restructured its equity and organizational framework, introducing diverse investors and establishing a domestic business unit to enhance strategic focus and resource integration [6][7] - The company launched the "Yaoguang 2025" strategy to strengthen its position in the new energy sector and partnered with Huawei to enhance its smart vehicle offerings [6][7] Group 3: Market Reception and Future Challenges - The IPO attracted 13 cornerstone investors who collectively subscribed for USD 587 million, indicating strong market confidence in Chery's dual strategy of technology and international expansion [7] - Despite the successful listing, challenges remain, including the fact that new energy revenue accounts for less than 30% of total income and reliance on external partnerships for smart technology [7][8] - The company plans to allocate 35% of the raised funds for developing various passenger vehicles, 25% for next-generation automotive technologies, and 20% for global expansion, aiming to leverage capital for a "smart breakthrough" and "global upgrade" [7][8]

Core Viewpoint - Chery Automobile, after 28 years of development, is set to list on the Hong Kong Stock Exchange on September 25, 2025, marking a significant milestone as it evolves from a local car manufacturer to the 11th largest passenger car company globally, with a focus on expanding its electric vehicle (EV) offerings and advanced technologies [1][4]. Group 1: Company Development - Chery has transformed from producing the "national car" QQ to a diversified company with five major brands, covering various segments including new energy vehicles [1][4]. - The company has achieved a 100% automation rate in its manufacturing processes, showcasing advanced technology and flexibility in production lines [2][3]. - Chery's journey began in 1997 with limited resources, but it has since become a leader in the Chinese automotive industry, mastering core technologies such as engines and transmissions [3][4]. Group 2: Market Position and Achievements - According to Frost & Sullivan, Chery is the second largest domestic brand in China and the only company among the top twenty global passenger car manufacturers to see over 25% growth in EV sales, fuel vehicle sales, domestic sales, and overseas sales [4]. - Chery has maintained its position as the top exporter of Chinese passenger vehicles for 22 consecutive years, leading in markets such as Europe, South America, and the Middle East [4]. Group 3: Future Plans and Strategies - The company plans to use funds raised from its IPO to enhance its R&D capabilities, focusing on developing various models and expanding its EV product line, with 20% of the net proceeds specifically allocated for this purpose [7]. - Chery aims to integrate smart technologies into its vehicles, establishing a "Chery Intelligent Center" to drive innovation in areas such as intelligent cockpit and autonomous driving [6][7]. - The "Yaoguang 2025" strategy outlines Chery's commitment to advancing in the new energy sector, achieving significant technological breakthroughs in battery systems and intelligent driving [6][7].

Core Viewpoint - Chery Automobile is set to launch its IPO in Hong Kong, aiming to raise up to HKD 91.45 billion, marking a significant milestone for the company as it seeks to expand its presence in international capital markets [1][2]. Company Overview - Founded in 1997 and headquartered in Wuhu, Chery specializes in the design, development, manufacturing, and sales of a diverse range of passenger vehicles, including both fuel and new energy vehicles [2]. - Chery is recognized as the second-largest domestic brand passenger car company in China and the eleventh largest globally, with significant growth in both domestic and international markets [2][3]. Financial Performance - Chery's revenue grew from CNY 92.62 billion in 2022 to CNY 269.90 billion in 2024, reflecting a compound annual growth rate (CAGR) of 70.7%. Net profit increased from CNY 5.81 billion to CNY 14.33 billion during the same period, with a CAGR of 57.1% [2][4]. - In Q1 2025, Chery maintained strong growth, achieving revenue of CNY 68.22 billion and a net profit of CNY 4.73 billion [2]. Market Position and Strategy - Chery has seen a remarkable increase in sales, with new energy vehicle sales up over 265% and fuel vehicle sales up over 29% [2][3]. - The company has a diversified brand portfolio, including Chery, Jetour, Exeed, iCAR, and Zhijie, covering various segments of the automotive market [3]. Technological Advancements - Chery is focusing on smart and electric vehicle technologies, with plans to establish a "Chery Intelligent Center" to enhance its R&D capabilities in areas such as intelligent cockpit and autonomous driving [6][7]. - The "Yaoguang 2025" strategy aims to advance Chery's position in the new energy sector, with significant technological breakthroughs in battery systems and intelligent driving technologies [6][7]. IPO Details - The IPO will involve the issuance of approximately 297 million H-shares, with a pricing range of HKD 27.75 to HKD 30.75, and is expected to be completed by September 25, 2025 [1][2]. - The funds raised will be allocated to R&D for new vehicle models, with 20% specifically earmarked for expanding the new energy vehicle lineup [7][10]. Investor Interest - The IPO has attracted significant interest from cornerstone investors, with a total subscription amount of approximately HKD 45.73 billion [10]. - Chery's successful IPO will complete the listing of the top five domestic car manufacturers, enhancing its competitive position in the market [10].