Geely Holding Group announced a strategic optimization of its equity structure involving Zeekr and Lynk & Co to enhance operational efficiency and foster collaboration within its automotive portfolio.

Target Information

Geely Holding Group, a leading automotive manufacturer, recently announced its strategic transition into a new phase through the 'Taizhou Declaration'. This initiative focuses on five key measures: strategic focus, integration, collaboration, stability, and talent development. The aim is to enhance its core automotive business, expand into technology ecosystems, and strengthen competitiveness while pursuing sustainable development.

As an essential step in fulfilling the objectives laid out in the 'Taizhou Declaration', Geely Holding announced on November 14 its plans to optimize the equity structure of its brands, Zeekr and Lynk & Co. This strategic move is intended to streamline equity relationships, reduce related-party transactions, and eliminate intra-industry competition. Following this, Geely Holding will transfer its 11.3% stake in Zeekr Intelligent Technology (NYSE: ZK) to Geely Automobile Holdings Limited (stock code: 0175.HK). Consequently, the ownership of Zeekr by Geely Automobile will increase to approximately 62.8%. Additionally, Lynk & Co will undergo a similar equity optimization to catalyze full strategic cooperation between Zeekr and Lynk & Co.

Industry Overview

The automotive industry in China is undergoing a significant transformation, driven by technological advancements and a push towards sustainability. With the government's support for electric vehicles (EVs) and a commitment to reducing carbo