AutoBeta(AutoBeta.net)05/04 Report--

Polar Krypton filed an updated red herring prospectus with the SEC Securities and Exchange Commission on May 4, which will be listed on the New York Stock Exchange under the symbol "ZK". Polar Krypton will issue 17.5 million shares of ADS (American depositary shares), each of which corresponds to 10 common shares, with a price range of $18 to $21 per share, according to the prospectus.

Polar krypton has been looking for a suitable listing window. According to the SEC website, polar krypton submitted its form to the SEC Securities and Exchange Commission as early as December 7, 2022, and then temporarily shelved due to geopolitical and other factors. On March 20, 2024, it updated its prospectus to announce its intention to list on the IPO of the New York Stock Exchange. For now, polar krypton is getting closer and closer to the goal of listing on the New York Stock Exchange.

Before submitting the prospectus, Polar Krypton completed 500 million yuan of Pre-A round strategic financing and 750 million yuan of A round financing in 2021 and 2023 respectively, with investors including Ningde Times, Yuexiu Industrial Fund, Trading Fund, Ningde Times and Quzhou Xinan Intelligence Fund, with a financing valuation of 13 billion US dollars.

Generally speaking, a new automobile manufacturing enterprise needs to invest at a high cost in the early stage, and it will take several years to make a profit. Although it relies on auspiciousness, whether it is the laying of offline distribution channels or the research and development of online product technology, it requires continuous capital investment, while the listing of extreme krypton in the United States, on the one hand, can bring more funds and ease the financial pressure of Geely's continuous investment. On the other hand, it brings higher brand awareness and market influence to polar krypton, which is conducive to the development and layout of its international business.

According to the financial report, the operating income of polar krypton in 2023 was 51.673 billion yuan, an increase of 62% over the same period last year; the net loss was 8.264 billion yuan, an increase of 8% over the same period last year; in other words, although the operating income of polar krypton increased in the past year, the loss was expanding, mainly in R & D costs and the laying of sales channels. It is understood that the net losses of polar krypton in 2021 and 2022 were 4.514 billion yuan and 7.655 billion yuan respectively, with a cumulative loss of 20.433 billion yuan in three years.

Extreme Krypton Automobile (Ningbo Hangzhou Bay New area) Co., Ltd., formerly known as Zhejiang Linke Automobile Industry Co., Ltd., was established in September 2020 with a registered capital of 500 million yuan, an Huicong as the legal person and Geely Automobile Group Co., Ltd as the controlling shareholder. In July 2021, polar krypton independent, Geely withdrew, and the controlling shareholder was changed to Shanghai Huapu Guorun Automobile Co., Ltd., which later changed its name to Polar Krypton Automobile (Shanghai) Co., Ltd., and the controlling shareholder of Polar Krypton Shanghai is the main body of this listing, Zhejiang Polar Krypton Intelligent Technology Co., Ltd., established in July 2021, with a registered capital of 10.5 billion yuan, legal person and general manager an Conghui.

Since its establishment, polar krypton has been arranged in five models, the first production car polar krypton 001, the first MPV polar krypton 009, the first SUV polar krypton X, the first car polar krypton 007. It is understood that four new cars will be launched this year, including the release of the polar krypton MIX at the 2024 Beijing Auto Show. The design of the new car is so distinctive that it is jokingly called "Baby bus" by netizens.

According to the equity fierce plan, the annual sales of polar krypton will be no less than 650000 in 2025, which is Li Shufu's requirement for an Conghui as well as for polar krypton. Data show that polar krypton delivers 71900 and 119000 new cars in 2022 and 2023 respectively, compared with a target of 230000 in 2024. Obviously, the annual delivery of polar krypton is a far cry from the target of 2024 and 2025, with a cumulative sales volume of 49100 vehicles from January to April and more than 22500 vehicles in the following month.

Before extreme krypton IPO, Geely already had many listed companies, such as Geely, Polar Star, Volvo, Yigatong and so on, but as the shortest company under Geely, it does not yet have the ability to operate independently. The cumulative net loss in the three years since its establishment has reached 20.4 billion yuan, and Geely is constantly giving it blood transfusions.

Today, Geometry and Ruilan incubated by Geely in the new energy vehicle market do not have much market bright spots. Jiyue brand, which cooperates with Baidu, has reduced prices as soon as it goes public. There is also a lot of room for improvement in the volume of Polar Star and Lutes in the Chinese market, and Polar Krypton obviously stands out. As a high-end brand, Polar Krypton has enough ability to compete with other brands. It is even more important for Geely's development in the electric vehicle market.

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