After nearly 9.4 billion yuan in controlling earnings, Xinji Krypton wants to become a BBA

Photo source: Visual China

Blue Whale News, February 14 (Reporter Li Zhuoling)After three months, Jikrypton officially controlled Lingke.

On the afternoon of February 14, Gekrypton officials announced the completion of the acquisition and capital injection of Linklink. At present, 51% of Link’s equity belongs to Gekrypton, and 49% belongs to Geely Automobile. The former has become a non-wholly owned subsidiary of Gekrypton. On the same day, Gekrypton Technology Group officially announced its establishment.

According to a new list of the group’s top executives obtained by Blue Whale News internally on the same day, An Conghui is appointed President of Geely Holding Group and CEO of Gekrypton Technology Group, Liu Xiangyang is appointed Vice President of Gekrypton Technology Group and CEO of Linker Brand, and Lin Jie is appointed Vice President and Director of the User Committee of Gekrypton Technology Group, Lin Jinwen is appointed Vice President of Gekrypton Technology Group, Yuan Jing is appointed CFO of Gekrypton Technology Group, and Guan Haitao is appointed CBO (Chief Brand Officer) of Gekrypton Technology Group.

According to sorting out, two of the six-member senior management team of Xinji Krypton are from the original Lingk.

This adjustment can be traced back to November 14 last year, when Geely Holdings announced the optimization of the equity structure of Gekrypton and Lingke. According to the plan at the time, Geely Holdings and Volvo sold 20% and 30% of the shares held by Lingke to Gekrypton at a price of 3.6 billion yuan and 5.4 billion yuan respectively; at the same time, Gekrypton subscribed and purchased new registered capital from Lingke, with a consideration of approximately 367 million yuan. In other words, Gekrypton spent approximately 9.367 billion yuan to buy a 51% stake in Linklink.

According to public information, LinkLink was released in October 2016 and was a joint venture between Geely Holding Group, Geely Automobile Group and Volvo Cars. Its past products were mainly fuel and hybrid models. Gekrypton was established in March 2021, formerly known as the LinkLink Electric Vehicle Business Group. Its first model, Gekrypton 001, was also born out of LinkLink ZERO.

Regarding this integration, An Conghui once publicly explained that on the one hand, it would make the equity structure clearer, and at the same time it could solve the problem that everyone is concerned about in the capital market, that is, related party transactions. ldquo; Since Geely Automobile is listed in China Hong Kong, Gekrypton is listed in the United States, and there are still some unlisted businesses, such related party transactions need to be operated in strict accordance with the accounting standards of Hong Kong and the United States. However, through this integration, we have significantly reduced related party transactions, which is a good thing. rdquo;

Blue Whale News learned that after the completion of the equity delivery, the newly established Gekrypton Technology Group will implement an organizational operation model driven by dual-brands and strong product line matrix based on the Gekrypton Automobile + Linkke Automobile dual-brand strategy, and comprehensively integrate manufacturing systems, supply chains and other mid-and-office organizations, as well as overseas organizations. At the same time, the group has established a unified management system and launched a new round of internal management changes from four aspects, including: product research and development collaboration, manufacturing system innovation, user operation upgrades, and intelligent system breakthroughs.

In terms of the positioning of the two major brands, Gekrypton focuses on markets of 300,000 and above, with medium and large vehicles mainly focusing on pure electricity, and large vehicles focusing on super-electric hybrids; Linkages focuses on markets of 200,000 and above, and small vehicles focusing on pure electricity, medium and large vehicles focusing on hybrids.

In terms of product planning, in 2025, Gekrypton Technology Group will release five new products to strengthen global market expansion, and focus on three innovation priorities of super-electric hybrid, full-chain AI and global security. It plans to achieve an annual sales target of 710,000 units., achieving a year-on-year growth of 40%, including 390,000 units of Lingk and 320,000 units of Gekrypton. For reference, last year, LinkLink delivered approximately 280,000 vehicles throughout the year, and Gekrypton delivered approximately 220,000 vehicles.

“In 2025, Gekrypton Technology Group will achieve a growth rate of 40% to achieve an annual sales target of 710,000 vehicles and become the BBA in the new energy era; in the next two years, the group will become a world’s leading high-end luxury new energy vehicle group with annual sales of one million units, changing the high-end luxury market pattern in China and even the world. rdquo; An Conghui said in a subsequent open letter.

It is noteworthy that this adjustment of Gekrypton Linkages is also a key measure to implement Geely Holdings ‘strategic framework of Taizhou Declaration. According to the “Taizhou Declaration” issued by Geely Holdings on September 20 last year, it will focus on the main automobile industry, lay out the technological ecosystem, and enhance competitiveness through five major measures: strategic focus, strategic integration, strategic coordination, strategic soundness, and strategic talent.

Blue Whale News previously learned from Geely Holdings that under the above-mentioned strategic guidance, Geely’s passenger car segment will form two horizontal layouts of the two major automobile business entities: Geely Automobile Group and Gekrypton Technology Group. In addition to Gekrypton Technology Group integrating Lynk and Gekrypton, Geely Automobile Group also integrates Geely, Geely Galaxy, Radar, Yizhen, etc. to face the mass mainstream market and accelerate the transformation of new energy.

“Brand integration not only can better connect users, but also coordinates vehicle planning, technical routes, and optimization of industrial chain layout, continuously reduces costs and increases efficiency, and enhances the company’s competitive advantages. rdquo; An Congming previously said.