On November 9, 2023, ZEEKR Intelligent Technology Holding Limited (referred to as "ZEEKR") publicly disclosed its prospectus to the United States Securities and Exchange Commission (SEC), intending to be listed on the New York Stock Exchange under the stock code "ZK", with underwriters including Goldman Sachs, Morgan Stanley, Merrill Lynch, CICC, Bank of China, HSBC, ICBC, and Puyin.
According to the prospectus, Jikron is a rapidly growing electric vehicle (BEV) technology company. Since its establishment, Jikron has been focusing on innovation in BEV architecture, hardware, software, and new technology applications.
According to the prospectus, before this issuance, Geely Automobile held 54.7% of the shares in Geely Krypton; Geely International (Hong Kong) Limited holds 13.2% of the shares; GHGK Innovation Co., Ltd. holds 9.8% of the shares. Among the directors and executives, Li Shufu holds 80.4% of the shares, while An Conghui holds 3%.
Jikrypton plans to use the raised funds for the following purposes: approximately 45% will be used to develop more advanced BEV technology and expand its product portfolio; About 45% is used for sales and marketing, as well as expanding the company's service and fee network; Approximately 10% is used for general corporate purposes, including working capital requirements, to support the company's business operations and growth.
On August 25th of this year, the website of the China Securities Regulatory Commission released the "Notice on the Filing of Overseas Issuance and Listing of ZEEKR Intelligent Technology Holding Limited". The notice shows that the China Securities Regulatory Commission has confirmed the registration information for the overseas issuance and listing of Geely Krypton. Geely Krypton plans to issue no more than 926074300 ordinary shares and list them on the New York Stock Exchange in the United States.
According to the prospectus, in 2020, 2021, and 2022, Geely Krypton achieved operating 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.
From January to June 2023, Jikron achieved a revenue of 21.27 billion yuan, compared to 9.012 billion yuan in the same period last year, with a year-on-year increase of 136.01% after calculation; The net loss was 3.871 billion yuan, compared to 3.085 billion yuan in the same period last year.
In 2021, 2022, and January June 2023, the accumulated losses of Jiyu were 16.04 billion yuan.
In addition, on February 13th of this year, Jikrypton released the official news on its official website that Jikrypton has completed a $750 million A-round financing. It is announced in the article that Jikron has completed a round A financing of $750 million, with a post investment valuation of $13 billion. This round of financing is invested by Professor Amnon Shashua, founder and CEO of the autonomous driving technology company Mobileye, five ecological partners including Ningde Times, Yuexiu Industrial Fund, Tongshang Fund, and Quzhou Xin'an Intelligent Manufacturing Fund.
Planned to go public in the United States with a valuation of nearly 100 billion yuan
According to the prospectus, Jikron is a rapidly growing BEV technology company. Since its establishment, Jikron has been focusing on innovation in BEV architecture, hardware, software, and new technology applications.
Extreme Krypton began its business as a department of Geely Motors in October 2017. Under the leadership of co founders Li Shufu, An Conghui, Li Donghui, and Gui Shengyue, the company registered Jikron Intelligent Technology as an exempted limited liability company under the laws of the Cayman Islands in March 2021, serving as the holding company of Jikron. Jikron stated in its prospectus that it seeks to list separately from Geely Automobile due to its different brand positioning and operational, management, and financial independence.
In April 2021, Jikron Innovation (currently a wholly-owned subsidiary of Jikron Intelligent Technology) was registered and established under the laws of the British Virgin Islands. During the same period, Jikron Technology (currently a wholly-owned subsidiary of Jikron Innovation) was registered and established under the laws of Hong Kong. In April 2021, Polar Krypton announced the launch of its first BEV model ZEEKR 001, which will be delivered starting from October 2021.
According to the prospectus, before this issuance, Geely Automobile held 54.7% of the shares in Geely Krypton; Geely International (Hong Kong) Limited holds 13.2% of the shares; GHGK Innovation Co., Ltd. holds 9.8% of the shares. Among the directors and executives, Li Shufu holds 80.4% of the shares, while An Conghui holds 3%.
Jikrypton plans to use the raised funds for the following purposes: approximately 45% will be used to develop more advanced BEV technology and expand its product portfolio; About 45% is used for sales and marketing, as well as expanding the company's service and fee network; Approximately 10% is used for general corporate purposes, including working capital requirements, to support the company's business operations and growth.
On August 25th of this year, the website of the China Securities Regulatory Commission released the "Notice on the Filing of Overseas Issuance and Listing of ZEEKR Intelligent Technology Holding Limited". The notice shows that the China Securities Regulatory Commission has confirmed the registration information for the overseas issuance and listing of Geely Krypton. Geely Krypton plans to issue no more than 926074300 ordinary shares and list them on the New York Stock Exchange in the United States.
In addition, on February 13th of this year, Jikrypton released the official news on its website that Jikrypton has completed a $750 million A-round financing. It is announced in the article that Jikron has completed a round A financing of $750 million, with a post investment valuation of $13 billion. This round of financing is invested by Professor Amnon Shashua, founder and CEO of the autonomous driving technology company Mobileye, five ecological partners including Ningde Times, Yuexiu Industrial Fund, Tongshang Fund, and Quzhou Xin'an Intelligent Manufacturing Fund.
Loss of 16 billion yuan in two and a half years
According to the prospectus, in 2020, 2021, and 2022, Geely Krypton achieved operating 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.
From January to June 2023, Jikron achieved a revenue of 21.27 billion yuan, compared to 9.012 billion yuan in the same period last year, with a year-on-year increase of 136.01% after calculation; The net loss was 3.871 billion yuan, compared to 3.085 billion yuan in the same period last year.
In 2021, 2022, and January June 2023, the accumulated losses of Jiyu were 16.04 billion yuan.
In 2020, 2021, 2022, and January June 2023, the net cash flow generated from operating activities of Jikron was 415 million yuan, 630 million yuan, -3524 million yuan, and 350 million yuan, respectively.
Gross profit margin has been continuously reduced for 2 years
In 2020, 2021, 2022, and January June 2023, the gross profit margin of polar krypton was 26.7%, 15.9%, 7.7%, and 10.5%, respectively.
In 2021, 2022, and January June 2023, the gross profit margin of the automotive sales business was 1.8%, 4.7%, and 12.3%, respectively (the gross profit margin of the automotive sales business in January June 2022 was 4.7%).
In its prospectus, Jikron stated that the company's gross profit margin decreased from 26.7% in 2020 to 15.9% in 2021, mainly due to an increase in the revenue contribution of car sales. As the company had just started delivering ZEEKR 001 in October 2021, the gross profit margin of car sales was relatively low. The gross profit margin for car sales in 2021 was 1.8%, and the gross profit margin for battery and other component sales decreased by 6% compared to 2020.
The company's gross profit margin has decreased from 15.9% in 2021 to 7.7% in 2022. The main reason for the decrease is the significant growth of the company's automotive sales business, with a gross profit margin of 4.7% in 2022.
The company's gross profit margin has increased from 9.7% for the six months ended June 30, 2022 to 10.5% for the six months ended June 30, 2023. The growth is mainly attributed to the significant growth of the company's automotive sales business, with a high gross profit margin of 12.3% for the six months ended June 30, 2023.