Geely Holdings has optimized its equity structure by increasing its stake in ZEEKR and reorganizing Lynk & Co to enhance operational efficiency and strategic collaboration within the evolving automotive industry.

Target Information

Geely Holdings has announced a significant restructuring of its equity in ZEEKR and Lynk & Co brands as part of the implementation of the "Taizhou Declaration" strategic framework. This strategic initiative, aimed at streamlining ownership relationships, will reduce related-party transactions and eliminate intra-industry competition. Geely Holdings will transfer its 11.3% stake in ZEEKR Intelligent Technology (NYSE: ZK) to Geely Automobile Holdings Limited (0175.HK), which after the transaction will increase its total ownership stake in ZEEKR to approximately 62.8%.

Additionally, the equity structure of Lynk & Co has been optimized to facilitate comprehensive strategic synergies between ZEEKR and Lynk & Co. Following this restructuring, ZEEKR will own 51% of Lynk & Co, while the remaining 49% will continue to be held by a wholly-owned subsidiary of Geely Automobile.

Industry Overview in China

The automotive industry in China has been undergoing remarkable transformations, reinforced by government initiatives like the Taizhou Declaration. This push emphasizes integration and collaboration among automotive players, which reflects the broader trend of con