Our reporter Liu Zhao
On May 10th Eastern Time, Jike Intelligent Technology Holdings Limited (hereinafter referred to as "Jike") was officially listed on the New York Stock Exchange with the stock code "ZK". Jike is also the fourth Chinese new energy vehicle company to list on the US stock market. Due to oversubscription, Extreme Krypton expanded its IPO size by issuing 21 million American Depositary Shares at a price of $21 per share, raising approximately $441 million. If the underwriter exercises its over allotment rights, the issuance scale will further expand to 24.15 million ADSs, raising approximately $507 million.
At the listing ceremony, An Conghui, President of Geely Holding Group and CEO of Geely Krypton Intelligent Technology, said, "Unlike traditional car companies and new forces, Geely Krypton empowers Geely Holding Group's car making heritage and global resources with a brand new independent brand. This is the third track that Geely Krypton has opened for global new energy transformation, and also the long-term value that Geely Krypton has highlighted in the global capital market. Geely Krypton will take the listing as an opportunity to further upgrade its governance structure and achieve global compliance, transparency, and sustainable development."
On the first day of listing, the opening price of Jike was $26 per share, and it briefly rose by over 38% during the trading session. As of the close, Jike closed at $28.26 per share, up 34.57%, with a total market value of $6.898 billion.
On the first day of listing, the stock price performance of Extreme Krypton
Five new models launched in three years, with a cumulative delivery of over 240000 vehicles
Since its release on April 15, 2021, relying on Geely Holding Group's 37 years of development accumulation and global advantageous resources, Jike has quickly built a complete pure electric intelligent technology ecosystem and created the "Jike model" for pure electric development.
Since its establishment, Jike has launched five models, including Jike 001, Jike 009, Jike X, Jike 007, and Jike MIX, which just made its global debut at the Beijing Auto Show. It is reported that in 2024, Jike will also launch a brand new mid to large pure electric SUV.
Faced with multiple pressures such as price wars among new energy vehicle companies, "chip shortages and expensive electricity", and subsidy reductions, Jike continues to break records in delivery volume. On May 1st, the latest delivery data released by Jike showed that 16089 units were delivered in April 2024, a year-on-year increase of 99% and a month on month increase of 24%, setting a new historical high; In the first four months of this year, there was a year-on-year increase of 111%, consistently ranking first in sales of Chinese pure electric brands above 200000 yuan. Since the brand launch, Jike has delivered over 240000 batteries (zero self ignition), continuously breaking the global safety limit for electric vehicles.
Thanks to the rich product matrix, the continuous expansion of the market size has also driven the company's performance to continuously climb. The data shows that Jike achieved a significant increase in total revenue from 2021 to 2023. Specifically, the total revenue in 2021 was 6.528 billion yuan, which increased to 31.899 billion yuan in 2022 and further reached 51.673 billion yuan in 2023. Meanwhile, the gross profit margin of Extreme Krypton is also at a relatively high level within the industry. Among high-end pure electric vehicle brands, the gross profit margin of Jike Automobile in 2023 is 15%, second only to Tesla's 19%.
"As a representative of China's new energy vehicle industry, Jike is empowered by Geely Holding Group's heavy assets, while its brand operates light on assets, forming a differentiated advantage. This also makes Jike stand out among the new forces in car manufacturing." Zhang Xiang, a researcher at the Automotive Industry Innovation Research Center of Northern Polytechnical University, said in an interview with Securities Daily, "Since the release of Jike cars, the market feedback has been quite good, and its excellent market performance has provided strong support for the successful listing in the United States."
Breaking the record for the fastest listing of Chinese new energy vehicle companies in the United States and embarking on a journey of globalization
"This listing in the United States will not only further enhance the company's global governance capabilities, but also open a new window for global investors to observe and participate in the global development of China's high-end new energy vehicles." An Conghui said, "In 37 months, Jike has broken the record for the fastest Chinese new energy vehicle brand from release to listing in the United States."
Since its establishment, Jike has been supported by excellent industrial capital and well-known institutions. In the past three years, Jike has successfully completed two rounds of financing, namely the Pre-A round of financing with a total amount of 500 million US dollars and the A-round of financing with a total amount of 750 million US dollars, involving multiple investors such as CATL, Intel, Bilibili, and Boyu Capital. This listing, old shareholders such as CATL and Intel continue to firmly subscribe, demonstrating their recognition of the long-term value of Jike.
It is reported that the Extreme Krypton Plan will use the raised funds in three aspects: about 45% will be used to develop more advanced pure electric vehicle technology and expand product portfolio; About 45% is used for sales and marketing, as well as expanding the company's service and charging network; Approximately 10% is used for general corporate purposes, including operational capital requirements.
Lin Shi, Secretary General of the Intelligent Connected Vehicles Branch of the China Europe Association, told Securities Daily, "As a typical example of China's new energy transformation and development, Jike's listing in the United States has set a new milestone for the globalization process of China's new energy industry and opened a new chapter in the company's journey towards globalization."
The successful listing of Jike on the New York Stock Exchange also provides strong support for its global market expansion and financing channels expansion.
Extreme Krypton has already started its international market layout. In the second half of 2023, the first batch of Geely Krypton 001 and Geely Krypton X models designed specifically for the European market were successfully produced at the Geely Krypton Smart Factory in Hangzhou Bay, Ningbo, and shipped to Europe.
The design of the Geely Krypton model fully considers the industry standards and user needs of major global markets. Its vast architecture for future intelligent transportation complies with the most stringent five-star safety standards in China, the United States, Europe, and other countries worldwide. The Geely Krypton 001 and X have obtained safety certifications from the European Union and the United Nations, and have taken the lead in sales and delivery in developed European countries.
"The recent actions of Jike indicate that globalization strategy has become the core of the company's development, which will help the company explore broader capital markets," Lin Shi further said.
According to the company, in 2024, Extreme Krypton will not only enter the markets of 8 European countries, but also 50 countries and regions in Southeast Asia, the Middle East, South America, Australia, and other regions, accelerating its globalization strategy comprehensively. As of the end of April, Jike has built nearly 380 stores worldwide.
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