After Geely’s revenue and net profit “double down”, its high-end electric vehicle Polestar may be listed on the SPAC?

News from “Science Innovation Board Daily” (Shanghai, reporter Zeng Le), On April 14, according to foreign media reports, Zhejiang Geely Holding Group, the parent company of Geely Automobile, was considering listing its high-end electric vehicle manufacturer Polestar (translated name: Polestar) through the SPAC method. The market value target is as high as 40 billion U.S. dollars (about 268.4 billion yuan), far exceeding the current market value of Geely Auto.

In response to the above news, Polestar replied to the reporter of the “Technology Innovation Board Daily”, “We do not make any comments or responses to the current market speculation, and the official information shall prevail.” Previously, Polestar has been rumored many times that it will be listed as soon as this year. What changes will Geely bring to the seemingly “busy” Polestar? “Not the only” high-end electric car weight At present, in Geely’s “car empire”, there are high-end electric vehicles such as Geometry, Polestar, and Pole Krypton. The reporter of “Science Innovation Board Daily” inquired about the official website of Geely Holding Group and found that the management structure of the group had been updated in early April. Among them, Volvo Cars and Polestar Cars are all classified as Volvo Cars Group. Geely’s newly established Jikrypton Automobile belongs to Jikr Intelligent Technology Co., Ltd., parallel to Geely Automobile Group and Volvo Car Group. Figure @吉利控股集团 Management Structure; Source: Geely Holding Group’s official website Currently, Polestar has two models, Polestar 1 and Polestar 2. But in terms of sales, Polestar’s performance does not seem to be optimistic. According to data from the China Automobile Center Data Resource Center, in 2020, Polestar’s cumulative insurance coverage is only 365 vehicles, which is at the end of luxury brands, far behind Tesla, Weilai, etc. “From the perspective of model design, Polestar 1 and Volvo S90, Polestar 2 and Volvo 40.2 are very similar. There is a certain degree of overlap between the two businesses, which will affect the development of the young brand of’Polestar’.” A reporter from the Science and Technology Innovation Board said, “Now many auto companies are taking the road of’branding the first model and selling subsequent models.’ Extremely krypton comes to the sales, of course, this also mainly depends on the latter’s selling price.” Some media reports previously stated that the first model of Ultra Krypton, ZEEKR 001, will be launched from August to September this year. It is reported that the new car is the original Lynk & Co ZERO, and the price will be set in the range of 300,000 to 500,000 yuan. “If you look at this price range, the extremely krypton pricing is aimed at Tesla and Weilai. It can even be said that its direct competitor is Weilai ET7.” An automotive engineer told a reporter from the Science and Technology Innovation Board, ” The customer base at this price is relatively small, and it will test whether the company can survive in the cracks.” Geely Auto with “Double Decline” in Revenue and Net Profit On March 23, Geely Automobile released its 2020 financial report. The financial report shows that in 2020, Geely Automobile’s revenue was 92.1 billion yuan, down 5% year-on-year; net profit was 5.57 billion yuan, down 33% year-on-year; gross profit margin was 16%, a decrease of 1.4 percentage points compared with the same period last year. Figure @吉利汽车 2020 main financial indicators; source: screenshot of Geely Automobile’s financial report In terms of sales volume, in 2020, Geely’s cumulative sales volume exceeded 1.32 million, a year-on-year decline of 3%. Among them, the sales of Geely’s new energy and electrified models were only 68,000, a year-on-year decline of 40%. This “report card” is quite different from the “Blue Geely Action” previously proposed by Geely Holding Group Chairman Li Shufu. In 2019, Li Shufu proposed that the core content of the “Blue Geely Action” is “In 2020, Geely’s production and sales will reach 2 million vehicles; of which, new energy products account for 90%.” “Geely has many sub-brands, opportunities and challenges coexist. Compared with other auto companies, Geely needs to focus more on creating explosive models and enhancing the speed of product upgrades.” The above-mentioned automotive engineer analyzed to a reporter from the Science and Technology Innovation Board. Said. Looking back at Polestar, its CEO Thomas Ingrat once publicly stated that “Polestar has a very clear mid- to long-term development goal, which is to open the door to IPOs and the stock market.” If Polestar is successfully listed, it may bring new growth points for Geely. As of 14:22 on April 14th, Beijing time, Geely Auto’s share price rose 5.51% to 20.30 Hong Kong dollars per share, with a total market value of 19,948 million Hong Kong dollars.