CATL (03750) H-shares are currently down 2.9%, trading at HK$475. At current prices, the stock has declined for three consecutive days, with a cumulative drop of 7.1%. The stock's trading volume is approximately 330,000 shares, involving HK$161 million. Its A-shares (Szse: 300750) are currently trading at RMB 287.14, down RMB 6.36, or 2.2%, with a turnover of RMB 1.396 billion involving 4.84 million shares. At current prices, the A-shares are trading at a 29.8% discount to the H-shares.

　　Following Li Auto (02015), Xiaomi (01810), and other new automakers initiating self-developed battery projects with other battery manufacturers, sparking market speculation about 'de-CATLization', two more automakers have advanced their battery-related businesses. NIO (09866) announced it has entered into a formal agreement with certain subsidiaries of Geely Holding Group regarding a strategic transaction on battery swap and charging services. Geely's subsidiaries will contribute all equity interests in Yiyi Interconnected Technology (Chongqing) and an additional RMB 640 million in cash to subscribe for newly issued equity in NIO Energy.

　　Upon completion of the transaction, Geely will hold 30% equity in NIO Energy, while NIO China will continue to hold a controlling stake of 63.6%. Existing investor Wuhan Guangchuang Emerging Fund will hold 6.4%. The post-investment valuation of NIO Energy in this transaction is approximately RMB 16 billion.

　　NIO noted that the shareholding ratio of Geely's subsidiaries will be adjusted after closing based on the achievement of certain operational targets; if performance falls short of expectations, the shareholding ratio may be reduced, but will not fall below 20%. Geely's subsidiaries also have the option to make an additional cash investment of RMB 640 million within a specified period. Assuming no post-closing equity adjustments, upon exercising the option, Geely's shareholding ratio will increase to 34%, while NIO China's shareholding ratio will decrease to 60%.

　　On the other hand, NIO China has agreed to subscribe for new equity in Haohan Energy, a charging business company under Geely, with cash. Upon completion of the transaction, it will hold 10% equity in Haohan Energy. The cash consideration will be used by Haohan Energy to purchase certain charging assets from NIO; the amount of this investment was not disclosed in the announcement.
　　
　　 Currently, the Hang Seng Index stands at 24,705, up 195 points or 0.8%, with main board turnover nearing HK$12.6 billion. The Hang Seng China Enterprises Index stands at 8,248, up 82 points or 1%. The Hang Seng Tech Index stands at 4,318, up 6 points or 0.1%. The current-month HSI futures are at 24,716, up 194 points, at a premium of 11 points. The current-month HCHI futures are at 8,251, up 85 points, at a premium of 2 points. The current-month HTI futures are at 4,322, up 7 points, at a premium of 6 points. (nw)