ZEEKR, Lynk & Co consolidate to form premium NEV group targeting 1 million units of annual global sales

Shanghai (Gasgoo)- On December 3, Mr. Lin Jinwen, Vice President of ZEEKR Intelligent Technology Holding Limited (“ZEEKR”), confirmed via his social media that following the strategic integration of ZEEKR and Lynk & Co, the corporate entity "Zhejiang ZEEKR Intelligent Technology Co., Ltd." remains unchanged. The newly integrated entity will be referred to as "ZEEKR Technology Group," overseeing the ZEEKR and Lynk & Co brands. The group aims to achieve annual global sales of one million high-end electric vehicles within two years.

Post-integration, the two brands will maintain independent operations at the front end while merging backend resources to maximize efficiency. During ZEEKR's Q3 2024 earnings call, Mr. An Conghui, Geely Holding Group President and ZEEKR Technology Group CEO, outlined the expected synergy results: a 10-20% reduction in R&D expenditures, a 5-8% decrease in BOM (bill of materials) costs, a 3-5% improvement in capacity utilization, and a 10-20% reduction in marketing, sales, and management expenses.

This integration aligns with Geely Holding's November 14 announcement of an equity restructuring at Lynk & Co, a critical step in advancing the strategic goals outlined in the "Tāizhōu Declaration."

Under this restructuring, Geely Holding will transfer its 11.3% stake in ZEEKR Intelligent Technology Holding Limited (NYSE: ZK) to its listed subsidiary, Geely Automobile Holdings Limited (HKEX: 0175). Following the transfer, Geely Automobile's total ownership in ZEEKR will rise to approximately 62.8%.

Additionally, Lynk & Co's equity structure has been realigned to enable strategic collaboration between Lynk & Co and ZEEKR. ZEEKR will now hold a 51% controlling stake in Lynk & Co, with the remaining 49% retained by a wholly-owned subsidiary of Geely Automobile.