After "Weixiaoli", the new energy vehicle company of Zhongxin Stock is expected to welcome new members. On November 10th, Geely's new energy brand, Extreme Krypton, publicly submitted its prospectus to the US Securities and Exchange Commission (SEC). Extreme Krypton is also expected to become the eighth listed company under Li Shufu.
With the official submission of the IPO prospectus by Jikron, the financial situation of this new energy vehicle company has also been made public in recent years. In the past three years, the total net profit of Jikron has lost over 12 billion yuan. However, compared to other pure electric vehicle companies such as NIO, Xiaopeng, and Zero Run, Geely's gross profit margin has maintained a relatively high level.
The fastest IPO car company in history?
According to the prospectus, the company plans to list on the New York Stock Exchange under the stock code "ZK". Geely's new energy vehicle company was established in March 2021, less than three years ago. The official submission of the prospectus this time also means that the IPO of Extreme Krypton is becoming clearer. It is expected to become the fourth Chinese intelligent vehicle technology company to go public in the United States after "Weixiaoli", and may also become the "fastest IPO" new energy vehicle company in history.
According to the prospectus of Geely Krypton, in March 2021, Geely Krypton Automobile was jointly invested and established by Geely Automobile and Geely Holding Group. Since its establishment in 2021, Geely Automobile has been the controlling shareholder and will continue to control Geely Krypton after the completion of this issuance.
According to the prospectus, before this issuance, Geely Automobile held 54.7% of the shares; Geely International (Hong Kong) Limited holds 13.2% of the shares; GHGK Innovation Limited holds 9.8% of the shares.
Prior to this, Jikron also experienced multiple rounds of financing and equity changes. On August 29, 2021, Jikron officially signed a strategic investment agreement with five ecological partners, including Intel Capital, Ningde Times, Bilibili, Hongshang Group, and Boyu Investment. The total investment of the five ecological partners is 500 million US dollars, accounting for approximately 5.6% of the shares after investment.
In December of the same year, Geely Motors announced that its acquisition of 220 million shares of common stock from Geely Group was approved by the shareholders' meeting. After the delivery is completed, Geely Automobile owns approximately 58.31% of the issued share capital of Geely Krypton, and approximately 54.47% of the expanded issued share capital of Geely Krypton.
In February of this year, Geely Krypton completed the Pre A series preferred stock financing, issuing and distributing approximately 139 million A-series preferred shares to five investors, totaling $750 million. The investors are Arnon Shashua, founder of Mobileye Global Inc., Ningde Times, Yuexiu Industry Fund, Tongshang Fund, and Xin'an Intelligent Manufacturing Fund. After the completion of the A-round financing, the post investment valuation of Jikron is approximately $13 billion.
Among them, Mobileye and Ningde Times have cooperative relationships with Jikron. Mobileye provides intelligent driving chips for the three current models of Geely Krypton, and both parties plan to jointly launch the world's first consumer grade intelligent driving electric vehicle with L4 level intelligent driving capabilities in 2024.
And Ningde Times signed a five-year long-term strategic cooperation agreement with Jikrypton in August 2022. At present, the first mass-produced version of the Kirin battery released by Ningde Times worldwide has also been mass-produced and installed on the models of the Jikron 009 and Jikron 001.
Planned to go public one year after its establishment
During the IPO process of Geely, Geely has been actively promoting it. More than a year after its establishment, news of Jikron's planned listing began to spread. As early as October 2022, Geely disclosed for the first time its plan to spin off and list Geely.
Subsequently, in December, Geely Motors announced on the Hong Kong Stock Exchange that on December 7th, New York time, Geely Krypton Motors submitted a draft registration statement to the US Securities and Exchange Commission on a confidential basis for possible initial public offering.
In August of this year, there were rumors in the market that Jikron planned to hold a new round of water testing meetings with investors at the end of August and planned to raise around $1 billion in future IPOs. If successful, this $1 billion fundraising will become the largest IPO of a Chinese company in the United States since Didi Travel raised $4.4 billion in 2021.
Subsequently, on August 25th, the website of the China Securities Regulatory Commission (CSRC) showed that the CSRC confirmed the registration information for the overseas listing of Geely Krypton. According to the overseas listing filing notice, Jikron plans to issue no more than 926 million ordinary shares and list them on the New York Stock Exchange in the United States. This is also the official green light for the IPO of Extreme Krypton.
This time, Jikron is rushing to go public with all its might, which means that Li Shufu's capital territory will once again expand. As of now, its listed platforms include Geely Automobile, a Hong Kong listed company; A-share listed companies Qianjiang Motorcycle, Hama Technology, and Lifan Co., Ltd; US listed companies Yikatong Technology and Jixing Automobile; There are a total of 7 Swedish listed companies, Volvo Cars.
Extreme Krypton is also expected to become the 8th listed company under Li Shufu. In addition, in April of this year, the first pure electric pickup truck brand under Geely Holdings Group, Radar Automobile, also revealed that the landing of Radar Automobile in the capital market is a certainty, and the company will follow the normal progress and choose an IPO opportunity.
Over 12 billion yuan in three-year losses
The disclosure of the prospectus of Jikrypton also made its financial situation public. According to the prospectus, from 2020 to 2022, Geely Krypton achieved revenue of 3.185 billion yuan, 6.528 billion yuan, and 31.899 billion yuan, respectively; The net profit was 104 million yuan, -4514 million yuan, and -7655 million yuan, respectively.
That is to say, in the last three complete reporting periods, the net profit loss of Jikron was 12.065 billion yuan. In the first half of this year, its loss situation did not narrow. In the first half of the year, the revenue of Extreme Krypton reached 21.27 billion yuan, a year-on-year increase of 136%; The net profit loss was 3.871 billion yuan, compared to 3.085 billion yuan in the same period last year.
However, the gross profit margin of Geely Krypton remains relatively high among new energy vehicle companies. In 2021, the gross profit margin of Krypton was 15.91%, but in 2022, this profit indicator dropped to 7.75%. In the first half of this year, the gross profit margin of Geely Krypton vehicles rebounded again, reaching 12.3%, a year-on-year increase of 7.6 percentage points.
Compared with other new power car companies, the profitability of Jikron is still acceptable. Horizontally, the gross profit margin of Ideal Automobile reached 21.22% in the first half of this year, while NIO was basically on the brink of gross profit loss, with a gross profit margin of only 1.52% in the first half of the year. However, Xiaopeng and Zero Run had negative gross profit margins in the first half of the year, at -1.43% and -5.88%, respectively.
One of the reasons for the significant loss of net profit of Jikron is the high research and development investment. From 2021 to the first half of 2023, the cumulative R&D investment reached 11.795 billion yuan, while in the first half of 2023, the R&D investment in polar krypton reached 3.189 billion yuan, a year-on-year increase of 56.09%. In the entire year of 2022, the revenue share of research and development investment in extremely Krypton was 17.07%.
In terms of vehicle delivery, the delivery volume of Geely Krypton in October was 13100 vehicles, an increase of 29.2% year-on-year and 8.5% month on month. However, in the previous October, the cumulative delivery of 92100 vehicles by Jikrypton was still far from its delivery target of 140000 vehicles proposed at the beginning of the year.
Extreme Krypton has also started a significant price reduction. Its promotional activities involving multiple models have been launched since October 16th and will end at the end of this year. Among them, a limited time discount of 37000 yuan is offered for Jikr 001; The maximum discount for Extreme Krypton X can reach 51000 yuan; The discount for Extreme Krypton 009 can reach 16000 yuan. From the analysis of the current sales situation of Geely Krypton, it is not easy for Geely Krypton to achieve its annual target of delivering 140000 vehicles. This also makes the biggest price reduction this time the sales force Geely Krypton X model.