As a typical example of China's new energy transformation and development, on the evening of May 10th, Beijing time, Zeekr Intelligent Technology Holdings Co., Ltd. (hereinafter referred to as "Zekr") was officially listed on the New York Stock Exchange with the stock code "ZK".
It is reported that due to oversubscription, Zeekr expanded the scale of its IPO and issued a total of 21 million American Depositary Shares (ADS, each ADS corresponds to 10 common shares) at an upper limit price of US$21 per share, increasing fundraising to approximately US$441 million. If the underwriters exercise their over-allotment rights, the issuance scale will be further expanded to 24.15 million ADS, raising approximately US$507 million. This is the largest IPO of a Chinese company in the US market since 2021.
Zeekr executives rang the bell for the opening of the New York Stock Exchange that day
On the first trading day, Zeekr opened at $26 and closed at $28.26, up 34.57% from the issue price. The intraday increase once exceeded 40%, and the market value once reached $7.16 billion (approximately RMB 51.729 billion).
Expected to become the fastest profitable electric vehicle company
As a luxury smart pure electric brand under Geely Holding Group, Zeekr was launched on April 15, 2021 and successfully listed on the New York Stock Exchange on May 10, 2024, taking only 37 months, setting a new record for the fastest listing in the history of new energy vehicle companies with the "Zeekr speed".
At the same time, Zeekr is the only company among the nine listed companies currently under the Geely system that is listed on the New York Stock Exchange.
Li Donghui, CEO of Geely Holding Group, said, "ZEKR's IPO is a microcosm of Geely Holding's overall strategic planning. Through the IPO, we will increase the transparency and standardization of corporate governance, enhance the independence and integrity of the operating accounting of the subsidiary business groups, improve operational efficiency, and better communicate with users, industries, regulators, and investment institutions in a responsible manner to promote global compliance governance of the company."
An Conghui, President of Geely Holding Group and CEO of Zeekr Intelligent Technology, said: "The new energy wave is a change that has not been seen in the global automotive industry for a century. Unlike traditional car companies and new forces, Zeekr has empowered Geely Holding Group's 37 years of car manufacturing heritage and global resources to a new independent brand. This is the third track opened up by Zeekr for the global new energy transformation, and it is also the long-term value that Zeekr highlights in the global capital market."
What makes An Conghui proud is that Zeekr's gross profit margin for complete vehicles was positive in the first year of its establishment, reaching 15% in 2023, an increase of 10.3 percentage points year-on-year. It is expected to become the earliest and fastest profitable electric vehicle company except Tesla.
According to reports, in the three years since the brand was launched, despite the pressure from multiple factors such as price wars, shortage of expensive electric chips, and subsidy reduction faced by new energy vehicle companies, Zeekr has continued to break records and lead the industry. Since its establishment, it has launched five new models. In 2024, Zeekr will also launch a new medium-to-large pure electric SUV.
As of the end of April 2024, Zeekr has delivered more than 240,000 vehicles in total. From January to April this year, it delivered nearly 50,000 vehicles, more than doubling year-on-year growth, and continues to be the sales champion of China's high-end pure electric brands with a sales volume of more than 200,000.
The company has also gained the favor of capital due to its outstanding core competitiveness. Since its establishment, Zeekr has been supported by excellent industrial capital and well-known institutions such as CATL and Intel. For this listing, old shareholders continue to subscribe firmly, fully recognizing the long-term value of Zeekr.
New York Stock Exchange Trading Floor
Globalization strategy is accelerating
With its successful listing on the New York Stock Exchange, Zeekr has reached a new milestone in its corporate development and opened a new chapter in its globalization journey.
It is reported that about 45% of the funds raised from this IPO will be used to develop more advanced pure electric vehicle technologies and expand the product portfolio; about 45% will be used for sales, marketing and expansion of services and charging networks; and about 10% will be used for general corporate purposes, including working capital needs, to support business operations.
Zeekr has always adhered to the "one vertical and one horizontal globalization" development strategy. An Conghui revealed that in terms of vertical integration, Zeekr will strengthen the vertical integration of the industrial chain and continue to make breakthroughs and innovations in various core technology fields of new energy vehicles. In the past three years, the cumulative investment in research and development has reached nearly 17 billion yuan.
It is worth mentioning that based on the architecture-based car-making concept, Zeekr's mass-produced pure electric models are all built on the SEA vast architecture, which is the world's largest bandwidth native pure electric architecture, greatly improving R&D efficiency and scale benefits, and leading category innovation. It efficiently guarantees the launch of five new cars in three years and the launch of no less than two new models each year by 2025.
In terms of technological innovation, Zeekr has launched the world's first mass-produced technology, including four-motor distributed electric drive, ZVC four-wheel torque vector control technology and satellite communication technology. It has also cooperated with Mobileye to develop advanced driver assistance systems to meet the global market's demand for intelligent driving.
Horizontally, Zeekr has strengthened ecological collaboration and laid out the world's only "three 800" ultra-fast charging full-ecological solution, which includes 800-volt cars, 800-volt electricity (power batteries), and 800-volt networks (energy replenishment networks).
As a "born global" company, Zeekr has always firmly followed the path of global development. The design of its models fully considers the industry standards and user needs of major global markets. The vast architecture meets the most stringent five-star safety standards in China, the United States, Europe and other regions around the world. Zeekr 001 and Zeekr X have obtained safety certifications from the European Union and the United Nations, and have taken the lead in starting sales and deliveries in developed European countries such as the Netherlands and Sweden.
Zeekr plans to export 30,000 vehicles by 2024
In 2024, Zeekr will not only enter the luxury markets of eight European countries, but also 50 countries and regions including Southeast Asia, the Middle East, South America, and Australia. In the United States, customized models in cooperation with Waymo, a world-renowned autonomous driving company, are likely to hit the road this year. An Conghui revealed that Zeekr's sales target for 2024 is 230,000 vehicles, of which 30,000 are planned to be exported.
On May 10, 2024, in Hangzhou, information about Zeekr's listing and trading on the New York Stock Exchange in the United States was posted at the entrance of Zeekr Hangzhou Sales Center.
Zeekr's listing on the U.S. stock market will not only further enhance the company's global governance capabilities and promote the global visibility of the Zeekr brand, but will also bring long-term value to global investors from the global development of China's high-end new energy, and set a new milestone for the globalization of China's new energy industry.
