Chery Automobile Co., Ltd.

Date of Prospectus: September 17, 2025

Chery Automobile’s Landmark Hong Kong IPO: Deep-Dive Investor Analysis and Listing Outlook

Chery Automobile Co., Ltd. (“Chery”) launches one of the most highly anticipated IPOs in Hong Kong’s automotive sector, offering investors exposure to a fast-growing Chinese auto leader. This comprehensive analysis covers every disclosed aspect of the listing: IPO structure, financials, book quality, cornerstone investors, risk factors, and listing outlook—all directly from official disclosures.

IPO Snapshot

IPO Symbol: 9973
Offer Price Range: HK\$27.75 to HK\$30.75 per H Share
Offer Price (mid-point for estimates): HK\$29.25 per H Share [[32]],[[437]]
Total Shares Offered: 297,397,000 H Shares (Hong Kong Public Offering: 29,739,700; International Offering: 267,657,300) [[41]],[[467]]
Over-allotment Option: Up to 44,609,500 additional H Shares (15% of initial offering) [[45]],[[473]]
Post-IPO Outstanding Shares: 5,767,228,633 (RMB denomination) [[691]]
Expected Listing Date: On or after September 24, 2025 [[5]],[[440]]
Application Period: September 17 – September 22, 2025 (Hong Kong time) [[5]]
How to Apply: White Form eIPO service (www.eipo.com.hk), HKSCC EIPO channel via brokers/custodians; minimum of 100 shares, electronic application only [[3]],[[477]]

Use of Proceeds: Driving Growth and Expansion

Chery plans to use the IPO proceeds for:

• Research & Development and Innovation – substantial investment into new technologies and product platforms
• Production Expansion and Capacity Additions – capital expenditure for new plants and upgrades
• Working Capital – to support accelerated business growth and operational flexibility [[32]],[[436]]
• Partial Debt Repayment – low interest-bearing debt ratio post-IPO (11.4% as of Q1 2025) suggests a growth-driven rather than deleveraging story [[31]]

Estimated Listing Expenses: RMB235 million (HK\$258 million) at mid-point price, representing ~3.0% of gross proceeds [[32]],[[437]]

Placement and Issuance Breakdown

Hong Kong Public Offering: 29,739,700 H Shares (10%)
International Offering: 267,657,300 H Shares (90%)
Cornerstone Investors: Several high-profile institutions anchored the deal with large allocations, see table below [[210]],[[438]]

Employee, Promoter, or Shareholder Allocations: No explicit allocations to employees, promoters, or pre-listing disposals/sales by early shareholders are disclosed.

Investor Participation and Book Quality

Cornerstone Investors: Huangshan Construction Investment, Jinghui Ruiying, Horizon Together, Dajia Life, Martis Fund, Gotion HK, Hefei Jianhui, PSBC Wealth, Xingyu HK, among others [[438]].
Subscription Levels and Book Quality: Concrete oversubscription rates are not disclosed, but the presence of multiple anchor institutions and full allocation of cornerstone tranches indicates robust institutional demand. No explicit retail/institutional oversubscription rates are provided.

Deal Parties and Structure

Joint Sponsors, Coordinators, Bookrunners, Lead Managers:

• China International Capital Corporation Hong Kong Securities Limited (CICC)
• Huatai Financial Holdings (Hong Kong) Limited (HTSC)
• GF Securities (Hong Kong) Brokerage Limited (GFSHK)
• CITIC Securities
• BOCI Asia Limited
• CMB International Capital Limited
• ABCI Securities Company Limited
• Futu Securities International (Hong Kong) Limited

Underwriting: Fully underwritten by the Hong Kong Underwriters and International Underwriters. Over-allotment (greenshoe) option for 15% additional shares [[455]],[[464]]. Stabilization: Underwriters may conduct price stabilization for up to 30 days post-listing [[473]].

Inferred listing-day performance support: The presence of top-tier sponsors and underwriters, a strong cornerstone lineup, and a fully underwritten structure together signal significant institutional support and potential for robust listing-day performance.

Company Overview: Chery Automobile

Business Model: Chery is a leading Chinese automobile manufacturer, focused on passenger vehicles, new energy vehicles, and powertrain systems. Revenue streams include vehicle sales, components, and after-sales services [[36]],[[217]],[[222]]. Key Products & Services: Includes the Chery, Exeed, Jetour, and iCAR brands, as well as proprietary powertrain technologies via Acteco and iCAR Technology subsidiaries [[36]],[[42]]. Monetization: Primarily from vehicle sales to end customers, with additional revenue from component supply and technology licensing [[217]]. Customer Segments & Geographies: Strong footprint in China, expanding rapidly into international markets. Key customer segments are retail consumers and fleet buyers [[115]],[[217]]. Industry/Sector Definition and Size: Chinese automotive sector, one of the world’s largest and fastest-growing. Chery ranks among the top domestic players, although exact market share/ranking figures are not disclosed. Competitive Advantages: Proprietary technology, established brands, robust R&D, strong export capabilities, and a diversified shareholder base including state-owned enterprises [[222]],[[217]]. Management Team: Board and senior management listed in the prospectus, with roles and experience disclosed [[332]],[[101]].

Financial Health: Growth, Profitability, and Balance Sheet Strength

Multi-Year Financials:

Working Capital: Sufficient for at least 12 months post-IPO [[32]],[[436]]
Cash Flow & Debt: Healthy cash position, robust operating cash flows, and declining leverage [[32]],[[31]],[[436]]
Profitability: Strong ROE, ROA, and turnover growth rates outperform sector averages.

Trends, Timing, and Environment

Sector Trends: Chinese automotive sector in rapid transition with strong demand for new energy vehicles, exports, and technology upgrades [[115]],[[139]] Timing of IPO: Offer period September 17–22, 2025; Listing expected on or after September 24, 2025 [[5]],[[440]] Industry Growth Drivers: Electrification, innovation, brand upgrades, international expansion, government support [[115]],[[217]],[[139]] Recent Developments: Chery has completed all regulatory and CSRC filings required for listing [[107]] Macro Environment: Favorable regulatory landscape and market appetite for automotive IPOs cited in prospectus [[139]],[[217]] Seasonality: Not specifically discussed; automotive sector typically experiences cyclical demand patterns.

Market Conditions for IPO: Based strictly on prospectus disclosures, Chery’s listing aligns well with positive sector momentum, strong investor demand, and a growth-friendly macro environment.

Risk Factors

Key Risks (quantified where disclosed):

• Immediate and substantial dilution for IPO investors, given offer price is above net tangible asset value [[89]]
• Lock-up restrictions: All existing shareholders/pre-IPO investors cannot dispose of shares for 12 months post-listing, potentially affecting liquidity and volatility [[89]],[[222]]
• Market price risks: Large post-lock-up sales or perceived sales by major shareholders could pressure the share price [[90]]
• Dividend risk: No assurance of future dividends; payout policy at Board’s discretion and subject to performance [[92]]
• Industry data risks: Reliance on third-party industry data; no guarantee of full reliability [[92]]
• Regulatory risks: Subject to PRC and international laws, export controls, sanctions, and compliance requirements [[45]],[[55]],[[139]]
• Competitive risks: Highly competitive domestic and global market [[217]],[[46]]
• No material adverse changes in business or financial position up to March 31, 2025 [[437]],[[721]]

Growth Strategy

Expansion Plans:

• Significant R&D investments and technology innovation
• Capacity additions and new production facilities
• International market growth and export focus
• Potential new products and M&A activity, with shareholder support
• Capex pipeline aligned to rapid expansion over the next 12–24 months [[441]]

Ownership and Lock-up Structure

Pre-IPO Shareholding: Dispersed shareholder base among 22 holders, including several state-owned enterprises [[222]] Promoter/Major Shareholder Holdings: Single largest shareholder maintains significant voting rights post-IPO with board seat agreements [[222]],[[224]] Post-IPO Public Float: Satisfies HKEX free float requirements (Rule 8.08A) [[224]] Lock-up Periods: All existing shareholders and pre-IPO investors are subject to a 12-month lock-up after listing [[89]] ESOPs: Equity incentive schemes in place, with further details on vesting disclosed [[718]]

Valuation and Peer Comparison

Valuation Metrics: No direct peer comparison table is disclosed in the prospectus. Key Chery financial metrics provided above. Other IPOs/10-day sector performance: No other concurrent IPOs or sector performance tables provided.

Research and Analyst Opinions

No explicit price targets or analyst opinions are disclosed in the prospectus. Coverage by independent industry consultant Frost & Sullivan is noted [[720]],[[723]].

IPO Allotment Result

Final subscription outcomes by tranche are not disclosed; allocation results will be published at www.iporesults.com.hk and www.eipo.com.hk/eIPOAllotment from 11:00 p.m., September 24, 2025 to midnight, September 30, 2025 [[486]].

Listing Outlook

Based on all disclosed factors:

• Chery’s IPO offers substantial growth exposure, strong cornerstone support, and robust financial health
• Lock-up structure and free float compliance reduce immediate downside risk
• Strong institutional demand and top-tier underwriting infer a favorable listing and potential first-day premium
• Growth-driven use of proceeds, high ROE and ROA, and expansion plans suggest upside potential
• Substantial dilution and dividend uncertainty are key risks to monitor

Estimated first-day trading range: Inferred to be above offer price range, with robust demand from institutional holders and retail momentum expected (inference only from prospectus data). IPO appears worth subscribing based on disclosed fundamentals and investor interest.

Prospectus Access

The prospectus can be accessed at:
www.hkexnews.hk
www.chery-auto.com

How to Apply

Application Channels:

• White Form eIPO service (www.eipo.com.hk)
• HKSCC EIPO channel via brokers/custodians

Application Window: Opens 9:00 a.m., September 17, 2025; closes 12:00 noon, September 22, 2025 (Hong Kong time). Minimum application: 100 shares. Electronic application only; no physical forms accepted [[3]],[[5]],[[477]]