Chery’s 21-Year Listing Journey Culminates: The Growth Logic and Practical Challenges Behind the Highlight
On September 25, 2025, Chery Automobile Co., Ltd. (stock code: 9973.HK) was officially listed on the Hong Kong Stock Exchange, marking the end of its 21-year listing journey. Before the opening, the stock price soared by 11.22% to HK$34.2 per share, with a market value exceeding HK$197.2 billion; during the session, the maximum increase reached 13.17%, and the market value once crossed the HK$200 billion mark. Finally, it closed at HK$31.9 per share, up 3.74% from the offering price, ending its first day of trading with a market value of HK$183.975 billion. It became the largest auto IPO in Hong Kong stocks in 2025. This performance not only confirms the capital market’s recognition of its long-term value but also reflects the pattern changes of Chinese independent brand automakers in global competition.
I. Listing Highlight: The Underlying Logic of Subscription Frenzy and Capital Recognition
The market enthusiasm for Chery’s listing exceeded expectations. Among the 297 million shares offered globally, the Hong Kong public offering received 308.18 times oversubscription, and the international offering also achieved 11.61 times oversubscription. Finally, it was priced at the upper limit of the offering price of HK$30.75 per share, with a total fundraising of HK$9.15 billion and a net amount of HK$8.879 billion. Such a strong subscription trend stems from its impressive operating data and unique competitive advantages in recent years.
In terms of financial fundamentals, Chery has built a profit curve with sustained growth. From 2022 to 2024, its revenue surged from 92.618 billion yuan to 269.897 billion yuan, with a three-year compound annual growth rate of 70.7%; net profit increased from 5.806 billion yuan to 14.334 billion yuan, with a growth rate of 57.1%. The strong performance continued in the first quarter of 2025: revenue was 68.223 billion yuan, a year-on-year increase of 24.25%; net profit was 4.726 billion yuan, a year-on-year surge of 90.87%. The cash flow reserve is also quite sufficient. As of the end of the first quarter of 2025, cash and cash equivalents reached 37.498 billion yuan.
The breakthrough in sales volume is even more competitive. In 2024, Chery achieved a record high sales volume of 2.6039 million units, a year-on-year increase of 38.4%, of which 1.1446 million units were exported, making it the champion of Chinese independent brand passenger car exports for 22 consecutive years. In the global market, it ranks second among Chinese independent brand passenger car companies and the 11th largest passenger car company in the world. Moreover, it ranks first in sales volume among Chinese brands in key overseas markets such as Europe and South America. From January to August 2025, despite fierce competition, it still achieved sales of 1.727 million units, a year-on-year increase of 14.2%, with a market share of 8.2%.
The in-depth layout of overseas markets has become a differentiated strength. From 2022 to 2024, the proportion of overseas revenue remained between 32.8% and 47.2%, and products are sold to more than 100 countries and regions. This global foundation is an important factor for it to obtain a premium in the capital market. The initial formation of a multi-brand matrix also provides growth resilience. The four independent brands of Chery, Jetour, EXEED, and iCAR, and the Zhijie brand in cooperation with Huawei work together. Among them, the new Zhijie model received more than 10,000 orders within 24 hours of its launch, becoming a new growth driver.
II. Growth Core: The Driving Code for the Dual Growth of Sales Volume and Revenue
Chery’s performance explosion in recent years is not accidental, but the result of the resonance of three forces: the stable base of fuel vehicles, the accelerated penetration of new energy vehicles, and global expansion.
Fuel vehicles, as the mainstay of revenue, continue to contribute stable cash flow. Although the proportion of fuel vehicle sales revenue dropped to 69.6% in 2024, it is still the absolute main force. The performance of accounting for 63.3% in the first quarter of 2025 continues this pattern. Among specific models, the Tiggo 8 series achieved cumulative sales of 96,200 units from January to August, and the Arrizo 8 series had a cumulative sales volume of 83,800 units, forming a dual-pillar pattern; the X70 series of the Jetour brand accumulated 59,100 units, becoming an important player in the segmented market. Relying on cost-effective advantages, these fuel vehicle products have built a solid foundation in the third- and fourth-tier markets and overseas emerging markets.
Although new energy vehicles started late, they have achieved rapid growth. Their revenue proportion jumped from 4.9% in 2023 to 21.9% in 2024, and further increased to 27.3% in the first quarter of 2025, with a growth rate far exceeding the industry average. The iCAR brand performed particularly prominently: the cumulative sales of the V23 model from January to August were 34,400 units, maintaining a monthly sales level of 6,000 units; among the Fengyun series, the T9 model accumulated 35,800 units, and the A9 L model became a hit as soon as it was launched, with sales exceeding 10,000 units in August. This structural improvement not only responds to the industry trend of increasing penetration of new energy vehicles (the penetration rate of new energy vehicles in China has reached 53.3% in June 2025) but also opens up space for long-term growth.
Continuous increase in R&D investment provides support for technological iteration. From 2022 to 2024, Chery’s R&D investment increased from 4.128 billion yuan to 10.544 billion yuan, with a total of more than 20 billion yuan in three years. Although the proportion of revenue remained between 3.9% and 4.5%, the absolute value increased significantly. Among the funds raised in this listing, 60% will be invested in R&D – 35% for the development of new models and 25% for the R&D of next-generation vehicles and advanced technologies, focusing on breaking through core technologies in new energy and intelligent connectivity.
III. Practical Challenges: Hidden Worries and Competitive Pressures Under the Growth Aura
Despite the bright performance on the first day of listing, Chery is also facing undeniable challenges. Multiple pressures have gradually emerged in the dimensions of new energy transformation, market competition, and financial structure.
The leading advantage in sales volume is being lost. In 2024, Chery ranked second among independent brands with 2.6039 million units, but the situation took a sharp turn in 2025: its sales volume in the first quarter was surpassed by Geely by 80,000 units; from January to August, the cumulative sales volume of 1.7273 million units was 169,800 units less than Geely’s 1.8971 million units. From the monthly data, the total sales of Chery’s new energy compact cars in August were less than 4,000 units, and the sales of the Zhijie R7 declined from the high in the first half of the year. There are still obvious shortcomings in the new energy product matrix. If this trend continues, its annual sales volume in 2025 may drop to the third place.
The speed of new energy transformation lags behind the industry. Currently, the penetration rate of new energy vehicles in China has exceeded 50%, and the penetration rate of new energy vehicles of independent brands is as high as 75.4%, but Chery’s 27.3% new energy revenue proportion is still significantly low. Compared with BYD, where new energy vehicles dominate its 777.102 billion yuan revenue in 2024, and its R&D investment increased by 53% to 30.88 billion yuan in 2025, Chery has a more obvious gap in core new energy technologies.
There are shortcomings in profitability and financial structure. In 2024, Chery’s net profit of 14.334 billion yuan was surpassed by Geely’s 16.632 billion yuan, and its gross profit margin of 13.5% was 2.4 percentage points lower than that of Geely; in the first quarter of 2025, the gross profit margin further dropped to 12.4%, and the gap with Geely widened to 3.4 percentage points. What is more alarming is its high debt ratio: the asset-liability ratio of 87.7% in the first quarter of 2025 is much higher than that of peers such as BYD (74.64%) and Geely (59.71%), resulting in a large financial risk exposure.
R&D efficiency needs to be improved. Although the absolute value of R&D investment has increased, the proportion of revenue of 3.91% – 4.46% is not only lower than that of BYD but also slightly lower than that of Geely. In key fields such as intelligent driving and battery technology, Chery has not yet formed landmark technological achievements similar to BYD’s Blade Battery and Huawei’s ADS, and the efficiency of converting technology into market competitiveness still needs to be verified.
IV. A New Starting Point After Listing: Fund-raising Uses and Future Layout
Facing opportunities and challenges, Chery regards the funds raised from the listing as a key starting point for strategic upgrading. The investment of the net HK$8.879 billion accurately addresses the core shortcomings:
- Technology R&D (60%): On the one hand, accelerate the product iteration of fuel vehicles and new energy vehicles, plan to launch more hybrid and pure electric models, and increase the market share of brands such as Fengyun and iCAR; on the other hand, focus on advanced technologies such as battery management, intelligent cockpit, and autonomous driving to narrow the gap with leading enterprises.
- Global Expansion (20%): Relying on 22 years of export accumulation, further deepen the layout in European and South American markets, replicate the success experience of the “Chinese Export Champion”, and hedge against the competitive pressure in the domestic market.
- Capacity Upgrading (10%): Transform the Wuhu production base, increase the production capacity of new energy models, and adapt to the demand for sales growth.
- Capital Reserve (10%): Supplement operating capital, optimize the financial structure, and reduce the operational risks brought by the high debt ratio.
Yin Tongyue, Chairman of Chery, clarified the long-term goal of “benchmarking against German and Japanese multinational automakers” at the listing ceremony and proposed a development path of “equal emphasis on domestic and overseas markets”. This means that Chery will make simultaneous efforts in three dimensions: technological R&D, brand upgrading, and global operation, trying to transform from a “sales-oriented enterprise” to a “technology-oriented global enterprise”.
Conclusion: Breakthrough After 21 Years of Precipitation
From the first proposal of the listing plan in 2004 to the listing on the Hong Kong Stock Exchange in 2025, Chery’s 21-year listing journey is not only a microcosm of the growth of Chinese independent brand automakers but also a witness to the evolution of the industry competition pattern. The market value of nearly HK$200 billion on the first day marks the capital market’s recognition of its past accumulation – 28 years of technological precipitation, 22 years of export champion, and a three-year high-speed growth performance curve, which together constitute its core value foundation.
However, listing is not the end but the starting point of more fierce competition. In the industry wave where the penetration rate of new energy vehicles is rushing to 90%, Chery not only needs to solve practical problems such as reliance on fuel vehicles, shortcomings in new energy, and insufficient profitability but also needs to cope with the leading advantages of BYD and the chasing pressure of Geely. The funds raised from this listing provide “ammunition”, but whether the capital advantage can be converted into technological advantages, product advantages, and market advantages still needs time to test.
For Chery, the 21-year wait has come to an end, and the new journey of building a “technological Chery and global Chery” has just begun.