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On April 3, Sina Science and Technology reported that Polar Krypton has restarted the US IPO program, raising up to $500m. In response to this news, the polar krypton official responded that it had filed with the US Securities and Exchange Commission (SEC) and said that preparations were under way.

It is worth mentioning that the IPO project of Polar Krypton cars in the United States has long been a harbinger. As early as last November, Polar Krypton submitted an IPO prospectus to the Securities and Exchange Commission (SEC) under the symbol "ZK" on the New York Stock Exchange. However, the official has been slow to release the key issuance range and size and other data, resulting in a lot of rumors in the market: due to weak market sentiment, extreme krypton temporarily shelved the US IPO plan, will continue to observe market conditions and decide when to resume the listing plan.

At that time, in response to the news, the polar krypton official responded that the company had publicly submitted a prospectus to the US Securities Regulatory Commission and that all preparations were in progress in an orderly manner.

Last December, there was new news about Polar Krypton's American IPO program. According to a person familiar with the matter, polar krypton has been looking for a suitable listing window after assessing the needs of investors. Or plan to launch an initial public offering (IPO) in the United States in February 2024, hoping that investor interest will increase. Generally speaking, the threshold for the listing of companies on the New York Stock Exchange is relatively loose, so some start-up large-scale enterprises choose to use this way to obtain the injection of social capital after the model is mature, in order to promote the rapid development of enterprises. However, judging from the external environment last year, although the US stock market maintained a rising momentum, with the rapid development of new energy vehicles, investors are also more cautious about the investment of electric vehicle companies.

As we all know, the desire for a higher valuation has something to do with its sales data, profitability, smart technology and so on. Data show: polar krypton is Geely's new intelligent pure electric car brand, released on April 15, 2021, jointly invested by Geely Automobile and Geely Holdings. Li Shufu is the chairman of the company, and an Conghui is CEO.

At present, polar krypton cars are sold in four models: polar krypton 001, polar krypton 009, polar krypton X, polar krypton 007. In terms of sales, although polar krypton achieved annual sales of 118685 vehicles last year, an increase of 65 per cent over the same period last year. But like most new car-building powers, polar krypton cars are losing money. According to the official prospectus, the net profits of polar krypton from 2021 to the first half of 2023 were-4.514 billion yuan,-7.655 billion yuan and-3.871 billion yuan respectively, with a cumulative loss of 16.04 billion yuan over the past two and a half years.

The increase in losses may be one of the main reasons why Polar Krypton wants to speed up the US IPO program. After all, it takes a steady stream of money to build cars. If polar krypton can be successfully listed in the United States, it will also provide sufficient financial support.

In addition, as Geely Holdings also very much hope that polar krypton cars can IPO, Geely has been actively promoting polar krypton IPO since 2022. In October 2022, Geely disclosed plans for a spin-off listing of Polar Krypton, and in December of the same year, Geely issued an announcement on the Hong Kong Stock Exchange. Polar Krypton submitted a draft registration statement for a possible initial public offering to the SEC on a confidential basis on December 7, New York time.

On March 21, Geely Automobile Holdings Co., Ltd. once again issued the latest announcement on the spin-off of polar krypton. According to the announcement, Polar Krypton submitted an updated revised version of Registration statement No. 3 to the Securities and Exchange Commission on March 20, 2024 (New York time). This version contains the audited and selected financial information of the Polar Krypton Group for the year ended 31 December 2023, which is prepared in accordance with generally accepted accounting principles in the United States and is based on information currently available to the Polar Krypton Group at the date of the updated registration statement. Officials say the sale of polar krypton will be implemented after market conditions permit and the Securities and Exchange Commission announces the entry into force of the registration statement. At present, the number and amount of American depositary shares to be offered and sold in the offering have not yet been determined, and a separate announcement on the sale of polar krypton will be issued in due course.

At this stage, the competition in the new energy vehicle market tends to be white-hot, and the capital market also holds a conservative attitude towards the valuation of the new energy vehicle industry. For IPO, the automotive industry is concerned that extreme krypton cars are imperative. After all, if you want to develop in the longer term, you need to expand the scale. In other words, more money is needed to continue to invest. The biggest advantage of listing is access to financing, which is very important for polar krypton cars.

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