After a 21-year journey, Chery Automobile’s (09973.HK) entry into the capital markets has been far from smooth.

As of March 6, 2026, Chery Automobile’s share price hit a new low after falling below its offer price, dropping to an intraday low of HK$24.46 before closing at HK$25, a decline of 1.19%. Its market capitalization has shrunk to HK$145.2 billion.

As the company once hailed as the "Subscription King" (Frozen Capital King) of the 2025 Hong Kong stock market, how did it reach this state?

A 21-Year Journey to Listing; Falling Nearly 20% Below Offer Price

Public records show that Chery Automobile was founded in 1997, originally named Anhui Auto Parts Industrial Co., Ltd., primarily focusing on engine production. Two years later, it was renamed Chery Automobile and produced its first vehicle in December 1999.

Following years of development, Chery now owns four major brands: Chery, Jetour, Exeed, and iCAR. Its product portfolio covers passenger vehicles, commercial vehicles, and minicars, including the Tiggo series, Arrizo series, and new energy series. In its pursuit of an IPO, Chery experienced six failed attempts, showing persistence over a 21-year journey before finally succeeding.

NewTimeSpace has learned that in 2004, shortly after completing its joint-stock reform, Chery first attempted an IPO through a backdoor listing, but this effort failed due to an equity dispute with SAIC Motor.

Subsequent attempts followed in 2008, 2009, 2016, 2019, and 2022. These failed to materialize due to various factors ranging from the external environment to the company's own inconsistent financial performance.

With Chery’s rapid growth in recent years, its IPO journey finally concluded. On September 25, 2025, Chery Automobile was officially listed on the Hong Kong Stock Exchange (HKEX), marking its entry into the capital markets.

NewTimeSpace understands that on its first day of listing, Chery’s stock price opened with a maximum surge of more than 13%, with its market capitalization briefly exceeding HK$200 billion before the market pulled back. By the close of that day, its market capitalization stood at HK$184.1 billion.

Notably, Chery Automobile’s global offering price was HK$30.75 per share, raising HK$9.14 billion, making it the largest auto-sector IPO in the Hong Kong market that year. Furthermore, the margin subscription was oversubscribed by more than 238 times, with subscription amounts nearing HK$220 billion, earning it the title of "Subscription King" for the 2025 Hong Kong market.

However, the intraday peak of HK$200 billion on the debut day became the high-water mark for the day and the highest point since listing. Since then, the stock price has continued to slide, with the first-day closing gain narrowing to 3.8%, erasing nearly two-thirds of its opening surge.

The subsequent stock price trend has been a volatile downward slide. As of the close on March 6, 2026, Chery Automobile was quoted at HK$25, a drop of 1.19%, with its market capitalization shrinking to HK$145.2 billion—an 18.70% decrease from its offer price of HK$30.75.

Hidden Concerns in Performance; Sales Slump in Early 2026 

Multiple factors lie behind the continuous decline in Chery Automobile’s share price. NewTimeSpace has learned that while the company's financial performance around the time of listing appeared impressive, it did not boost the stock price.

It is understood that in late October following the listing, Chery disclosed its 2025 third-quarter report. During the reporting period, Chery achieved revenue of RMB 214.833 billion, up 18% year-on-year, and a period profit of RMB 14.501 billion, up 28% year-on-year.

However, behind these bright figures, the profit structure reveals issues. In Q3 2025, the 28% year-on-year profit growth was largely attributable to high growth in "other income and gains," which includes government subsidies and gains from asset disposals.

Furthermore, as of the end of Q3 2025, Chery’s debt-to-asset ratio reached approximately 82%, significantly higher than its peers BYD and Geely. This high-leverage financial structure implies a weaker ability for Chery to withstand risks.

Between 2022 and 2024, Chery’s revenue grew from RMB 92.6 billion to RMB 269.9 billion, with a compound annual growth rate (CAGR) of approximately 71%. However, this growth rate showed a clear slowing trend in 2025.

Recently, major automakers have released their February delivery figures. Data shows that HIMA (Harmony Intelligent Mobility Alliance) delivered 28,000 units in February, up 31% year-on-year, with cumulative historical deliveries exceeding 1.282 million units.

Notably, within the HIMA matrix, the Luxeed brand performed the weakest, accounting for only 3.36% of February sales. According to Chery’s announcement, Luxeed sales in February plunged 90.6% year-on-year to 945 units, ranking last among the company's five major brands. From January to February, Luxeed’s cumulative sales were 5,451 units, a 76.3% decline.

On March 1, 2026, Chery Automobile (9973.HK) released its February 2026 sales figures, reporting total sales of 147,200 units, a 14.8% decrease year-on-year.

From January to February 2026, Chery Automobile’s cumulative sales reached 337,700 units, a 12.5% decrease year-on-year. Breaking down the brands: the Chery brand sold 243,300 units, up 3.9%, making it the only brand under the group to achieve growth. Exeed sales were 9,292 units (-35.5%); Jetour sales were 70,400 units (-29.9%); iCAR sales were 9,243 units (-32.9%); and Luxeed sales were 5,451 units (-76.3%).

In 2025, Chery Automobile achieved annual sales of 2.6314 million units, an 8% increase. During that year, only Exeed saw a 15% decline, while all other brands grew. In comparison, the start of sales in 2026 has been noticeably poor.

Escalating Middle East Conflicts; Auto Exports May Be Impacted

Data from the General Administration of Customs of China shows that in 2025, the Middle East absorbed 17% of China's total passenger vehicle exports, making it a vital market for Chinese automakers.

NewTimeSpace has learned that Chery sold approximately 2.8064 million vehicles in 2025, with overseas sales reaching 1.344 million units, accounting for nearly 50% of the total. Exports to the Middle East reached approximately 236,200 units, representing 17.6% of total exports.

In December 2025 alone, according to Gasgoo Auto Research Institute, Chery exported 25,908 units to the Middle East, while total monthly overseas exports were approximately 108,000 units. The Middle East accounted for 24% of the monthly export total.

From becoming the world's largest auto exporter in 2023 to the continuous climb of overseas sales in 2025, Chinese automakers have viewed "going global" as a "second growth curve" to break through domestic saturation.

However, with the recent sharp deterioration of the situation in Iran leading to intensified Middle East conflicts, coupled with tightening policies and plunging sales in the Russian market, the industry's export sector is facing an unprecedentedly complex operating environment.

Industry insiders state that the persistent tension in the Middle East has moved from a projected impact to a reality for auto exports. Rising regional security risks directly suppress local demand. Automakers are facing pressure on orders, delivery schedules, and payment security, making a slowdown in export growth highly likely and necessitating a more cautious global strategy.

NewTimeSpace notes that although Chery disclosed in its IPO prospectus that Iran is a comprehensively sanctioned country under the U.S. sanctions regime and that Chery had ceased sales to Iran as of December 31, 2024, the current turmoil in the Middle East will naturally impact the broader regional layout of Chinese automakers. As the champion of domestic auto exports, Chery may face even greater pressure.

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