GEELY AUTO (00175) announced that on May 15, 2026, Zhejiang Jirun and Geely Sales, as buyers, entered into an equity transfer agreement with Zhejiang Radar Auto, as the seller, to acquire the full equity of Radar Auto (Shandong) and Radar Auto Sales for cash considerations of RMB 159 million and RMB 59 million, respectively. Concurrently, CIL and GAIL, as buyers, executed a share purchase agreement with Radar HK and Radar BVI, as sellers, to acquire the entire issued share capital of Radar Thailand for a total cash consideration of RMB 49 million. Upon completion of the acquisitions, Radar Auto (Shandong), Radar Auto Sales, and Radar Thailand will become wholly-owned subsidiaries of the company. As of the announcement date, Radar Auto (Shandong) is a wholly-owned subsidiary of Zhejiang Radar Auto, which is fully owned by Geely Holding and primarily serves as a holding platform for Radar Auto (Shandong) with no substantive business operations. Radar Auto (Shandong) holds the core assets and value of the Radar pickup truck product line and is responsible for managing the Radar product portfolio. It oversees comprehensive management across the entire industrial chain, encompassing upstream component procurement, midstream vehicle manufacturing, and downstream automotive sales. Radar Auto Sales is a wholly-owned subsidiary of Zhejiang Radar Auto, itself wholly owned by Geely Holding, primarily engaged in the retail of automobiles and automotive spare parts. Radar Thailand is 99% owned by Radar HK and 1% by Radar BVI, both of which are subsidiaries of Geely Holding. Its main business involves distributing electric vehicles in Thailand. The acquisitions enable the group to integrate a new energy pickup truck brand into its operations, thereby expanding and diversifying its product portfolio. While penetration rates in other major global pickup truck markets are relatively high, the Chinese pickup truck market demonstrates significant growth potential. Concurrently, advancements in electrification and smart vehicle technology, coupled with rising fuel prices, have collectively heightened market attention and demand for new energy pickup trucks. Furthermore, the gradual relaxation of pickup truck restrictions in various regions positions Radar products to meet the needs of both commercial users and individual consumers. The board believes that integrating Radar is expected to consolidate the group's position in the pickup truck segment and support its overall market positioning. The acquisitions also contribute to optimizing the layout and resource allocation of the group's passenger vehicle business. By incorporating Radar's operations into the group's internal operational system, the group anticipates enhanced synergies in product planning, resource allocation, and brand management, leading to reduced duplicate investments, improved operational efficiency, and strengthened cost control. Following the completion of the acquisitions, the target companies will be able to leverage the group's international distribution channels to rapidly expand into overseas markets, further promoting growth in export sales.
Comments