Geely Automobile ushered in a positive: the increase of 220 million shares of Extreme Kr was approved and the actual controller increased its holdings

On December 17, Geely Automobile (00175.HK) announced that the company's acquisition of 220 million ordinary shares of Extreme Kr from Geely Group was approved by the shareholders' general meeting. In addition, Li Shufu, chairman of Geely Holding Group, will increase his stake in Geely Automobile by 2%.

Increase the holding of Extreme Kr shares to strengthen the layout of intelligent pure electric vehicles

According to the announcement, Geely Automobile paid a price of approximately RMB5.602 billion for the acquisition of 220 million shares of Extreme Kr. Geely Automobile paid approximately RMB1.807 billion in cash and the remaining consideration portion of the allotment and issuance of 196 million shares at the issue price of HK$23.34 per share.

The Shares represent approximately 10.34% of the issued share capital of Extreme Kr (on a converted basis) and approximately 9.66% of the expanded issued share capital of Extreme Kr (on a fully diluted and converted basis). Upon completion of the closing, Geely Automobile will own approximately 58.31% of the issued share capital of Extreme Kr (on a converted basis) and a 54.47% of the issued share capital of Extreme Kr (on a fully diluted and converted basis), and Extreme Kr will remain a non-wholly-owned subsidiary of Geely Automobile.

It is understood that Extreme Kr is mainly engaged in research and development, procurement and sales of Extreme Kr brand intelligent pure electric vehicles and providing related services. The Krypton plan focuses on the research and development of intelligent pure electric vehicle technology, three electric technology, and other cutting-edge technologies related to the upstream and downstream of intelligent electric vehicles.

Li Shufu increased his holdings to boost the company's development confidence

In addition, Geely Automobile announced that Li Shufu increased his stake in the company by 2%. This year, Geely Automobile accelerated the pace of transformation and upgrading, and its profit structure showed a diversified trend and its operation was stable. According to the latest sales data, Geely Automobile achieved total sales of 1,169,264 units from January to November 2021, 135,869 units in November 2021, an increase of about 22% month-on-month, and sales of new energy and electrified models in November were 16,161 units, an increase of about 137% year-on-year. Geely Automobile delivered a total of 1,173,644 vehicles from January to November and 137,036 vehicles in November.

Geely Automobile said that while seeking external financing for Extreme Kr, the increase in the holding of Extreme Kr shares will maintain the company's position as the largest controlling shareholder of Extreme Kr, thereby maximizing the interests of the company's shareholders. At the same time, Li Shufu increased his stake in Geely Automobile, showing the confidence of the company's shareholders in the company's future development and strong support.