A month ago, the new pure electric vehicle company, which appeared in the internal speech of Li Shufu, chairman of the controlling shareholder Zhejiang Geely Holding Group Co., Ltd. (hereinafter referred to as "Geely Holding"), finally came from behind the scenes to the stage.
On March 23, when Geely Automobile Holdings Co., Ltd. (0175.HK, hereinafter referred to as "Geely Automobile") disclosed its 2020 financial report, it announced that after the early product layout, it decided to establish Jikrypton Company (hereinafter referred to as "Geely Automobile") "Jikrypton"), responsible for the specific promotion of electric business, Li Shufu serves as chairman of Jikrypton, and An Conghui serves as CEO of Jikrypton.
The pure electric company was officially established
According to the framework agreement signed by Geely Automobile and Geely Holding, the two parties will establish an overseas joint venture and indirectly wholly own it through a joint venture company established in China. is a wholly foreign-owned enterprise engaged in R&D, procurement and sales of electric travel-related products including Jikrypton brand smart pure electric vehicles in China, and this joint venture is Jikrypton.
Relevant information shows that Jikrypton is jointly invested by Geely Automobile and Geely Holding (including employee follow-up investment platform and user rights platform). The shareholding ratios of both parties are 51% and 49% respectively. The planned cash Capital injection of RMB 2 billion.
Regarding the joining of Geely Holding, Li Donghui, CEO of Geely Holding, Vice Chairman and Executive Director of Geely Automobile, explained that only one company, Jikrypton, develops all related technologies, which is not the most economical in terms of scale efficiency. As a result, Geely Holding’s participation in Jikrypton’s equity structure will help to jointly build and share the technology supply chain and ecosystem, reducing Jikrypton’s R&D costs and supply chain costs. .
It is worth mentioning that An Conghui, as chairman of Geely Automobile Group and executive director of Geely Automobile, has led Geely Automobile from 2.0 to 3.0 and from 3.0 to 4.0 in the past 10 years, focusing on and completing Regarding the development of multiple types of products, the appointment as CEO of JiKr is of great significance. It can be said that An Conghui will be able to mobilize the resources of the entire Geely Automobile Group to cooperate with the development of JiKr in the future.
The entire Jikrypton layout planning can be traced back to the vast SEA architecture developed by Geely Automobile five years ago. An Conghui said bluntly that the factory for Jikrypton’s first product has been built and is in the process of product quality cultivation. In this period, the entire industrial chain and ecosystem surrounding Geely's smart pure electric vehicles has been fully completed. "We established Vair Corporation in 2013 and began to develop motors, electronic controls, and reduction gearboxes in 2013. Whether it is from three types of electricity, or to smart driving, smart cockpits, and smart interconnection, the entire industry chain has been formed." < /p>
At the same time, An Conghui emphasized that unlike concept cars on the market, Jikrypton products are spot goods and not futures. According to the plan, Jikrypton products will be available for pre-order at the Shanghai Auto Show in April this year and will be completed in the fourth quarter of the same year. Delivery, with plans to bring new products to market every year for the next five years.
Ji Krypton’s mission
The establishment of Ji Krypton is actually a mission choice to carry two auspicious blue actions.
In 2015, Geely proposed the Blue Geely Action, focusing on energy-saving and new energy vehicles, including hybrid vehicles, plug-in hybrid vehicles, extended-range plug-in hybrid vehicles, and small-displacement energy-saving vehicles. Automobiles; In 2021, based on the changes in the global automobile industry and changes in the application environment, two blue Geely action plans will be formed to actively participate in the competition in the intelligent pure electric vehicle market.
However, in this increasingly fierce market competition, Geely Automobile's current performance seems to be temporarily at a disadvantage. According to Geely Automobile's 2020 financial report, the company's revenue that year was 92.1 billion yuan, down 5% year-on-year, net profit was 5.57 billion yuan, down 33% year-on-year, and profit attributable to shareholders was 5.53 billion yuan, down 32% year-on-year. The interest rate is 16%, a decrease of 1.4 percentage points compared with the same period last year.
Although Geely Automobile's revenue and profits have declined in 2020, as of the end of 2020, its monetary fund balance has reached 19 billion yuan, and its operating cash flow has changed from -3.2 billion yuan in mid-2020. 1.6 billion yuan, the cash reserves are relatively sufficient.
"Geely Automobile's revenue and net profit have declined in 2020. This is affected by objective factors such as the epidemic and rising raw material prices, but it is also a manifestation of Geely Automobile's own development cycle." Geely Automobile Executive President and Executive Director Gui Shengyue said that in 2020, Geely Automobile products are facing a transition period from the 3.0 era to the 4.0 era. Most products are at the end of their life cycles and are not very competitive. However, starting from the second half of 2020, with the Geely 4.0 era products such as Xingrui, Lynk & Co 05, and Lynk & Co 06 are successively launched. Geely Automobile's performance is about to explode, with a sales target of 1.53 million vehicles in 2021.
In response to the development trend of Geely Automobile, industry experts pointed out that since the beginning of 2021, Geely Automobile has made major moves one after another, but when placed in the company's entire growth path, it can be seen that this This period will be a critical stage for Geely Automobile’s electrification transformation and cultivation.
Public information shows that on January 11, Geely and Baidu officially announced the production of cars; on January 13, Geely teamed up with Foxconn to form a joint venture to provide OEM and customized consulting services; on January 19, Geely With the signing of a strategic cooperation agreement with Tencent, Geely Automobile's Internet genes are accelerating its accumulation.
"Our goal is to establish a strategic collaborative alliance for the development of the electric vehicle industry and the intelligent field." In Li Donghui's view, Jikrypton is a "new four modernization" company developed under a development model that is fully suitable for the Internet thinking. , whether it is to form a leading position for Geely technology in the field of electrification and intelligence in China and even the world, or to create collaborative and shared value for partners, it will achieve complementary advantages, reduce R&D costs, improve supply chain capabilities, and bring about Let’s work together to create a win-win situation at the commanding heights of the development strategy of the smart electric vehicle industry.