On November 10th, Geely Motors (00175) announced that on November 9th, 2023, Geely Krypton publicly submitted its registration statement to the US Securities and Exchange Commission in accordance with the US Securities Act of 1933 regarding the sale of Geely Krypton.
The prospectus shows that Jikron plans to list on the New York Stock Exchange under the stock code "ZK".
Public information shows that Jikron is a high-end new energy vehicle brand incubated by Geely Automobile, and the company was established in March 2021. In August 2021, Jikron Intelligent Technology signed a stock purchase agreement with five investors, agreeing to issue and distribute a total of approximately 126 million shares of Pre A series preferred stock to investors, for a total consideration of $500 million. The investors participating in this round of financing are all independent third parties, including Intel Investment Company, Ningde Times, Hongshang Industry Holding Group Co., Ltd., Bilibili related investors, and Boyu Investment.
At that time, Jikron released news that the company could not rule out the possibility of further participating in the capital market in different forms in the future. Now, with the IPO of Geely Krypton, the company will become the fourth Chinese smart car technology company to go public in the United States, following "NIO Xiaoli".
It is reported that in terms of product launch, Jikron has released a total of three new cars within two years of its establishment. Among them, the Ji Kr 001 is positioned as a pure electric vehicle with a cost of over 300000 yuan, while the newly released Ji Kr 001 FR is positioned as a new energy performance supercar. In addition, the MPV product 009 of Jikron and the compact model Jikron X have also achieved hot sales in their respective segmented markets. The latest data shows that in October this year, the delivery volume of polar Krypton reached 13100 vehicles, a year-on-year increase of 29.2% and a month on month increase of 8.5%.
It is worth noting that the several models currently launched by Jikron are relatively niche products. Previously, An Conghui, CEO of Jikron Intelligent Technology, revealed in an interview with Securities Times reporters that although Jikron's products are niche, the company's goal for each product development is very clear, which is to be a benchmark for segmented markets. In the future, Jikron will launch three more popular products.
In terms of delivery speed, in 2022, the annual delivery of Krypton exceeded 70000 units. As of the end of October 2023, the monthly delivery volume of polar Krypton has been increasing year-on-year for 9 consecutive months.
In terms of research and development, in the first half of 2023, the company invested 3.189 billion yuan in the research and development of Krypton, a year-on-year increase of 56.09%. From 2021 to the first half of 2023, the company's cumulative research and development investment reached 11.795 billion yuan.
In terms of performance, in 2022, Jikron achieved a revenue of 31.899 billion yuan, and in the first half of this year, its revenue reached 21.27 billion yuan, a year-on-year increase of 136%; Among them, the sales revenue of complete vehicles was 13.175 billion yuan, a year-on-year increase of 148.75%. In terms of gross profit margin, in the first half of 2023, the gross profit margin of Geely Krypton vehicles reached 12.3%, a year-on-year increase of 7.6 percentage points.
An Conghui stated that the gross profit margin of the company will reach double-digit percentages this year, and as for when the company will make money, it is currently impossible to provide exact information. But Jikron is confident to become China's fastest making new energy vehicle company.
For the listing of Jikron, Geely Holdings Group stated that with the gradual release of the company's scale effect, combined with the strong empowerment of Geely Holdings Group, and the assistance of upstream and downstream ecological and industrial chain partners, Jikron is expected to continue to consolidate the company's strength and move towards the goal of becoming the most growing global automotive technology company.