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]