Geely Automobile recently issued an announcement announcing that it will hold 45% of the shares of Ruilan Automobile. This news has aroused the attention of the market and the industry to the future development of Ruilan Automobile. As a subsidiary of Geely Automobile, Zhejiang Jirun signed an equity transfer agreement with Geely Qizheng. This means that after the completion of the transaction, Zhejiang Jirun will no longer own any equity in Ruilan Automobile.
It is understood that in 2023, the sales of Ruilan Automobile will decline sharply, down 32% year-on-year. Among Geely's many brands, Ruilan Auto is the only one with declining sales. What's more serious is that in 2023, Ruilan Automobile's revenue will decline by 40% year-on-year, and the net loss after tax will be as high as 62.2 billion yuan. In the face of such a dire situation, executives are undoubtedly under tremendous pressure.
Does Geely, which owns brands such as Galaxy, Zeekr, and Lynk & Co, really plan to give up Ruilan Automobile? According to the announcement, Geely said that the battery swap business of Ruilan Automobile is still in its infancy, and it is expected that the main resources and continuous capital investment will be used to develop the battery swap ecology and related infrastructure. In order to enhance the Group's competitiveness, Geely has decided to focus most of its resources on supporting the growth of new energy vehicles and the battery swap business.
For Geely Automobile's strategic adjustment, there is a view that this is to focus resources on the growth of new energy vehicles and the battery swap ecology and related infrastructure. After all, in the field of new energy vehicles, Geely Automobile owns brands such as Galaxy, Zeekr, and Lynk & Co, and concentrating most of its resources on these more competitive areas will undoubtedly help improve Geely Automobile's competitiveness.
It is worth mentioning that Cai Jianjun, vice president of Ruilan Automobile and general manager of the sales company, has frequently changed jobs in recent years. He worked for Qoros and then Aiways, both of which are now in trouble. For Cai Jianjun, how to deal with the current predicament and lead Ruilan Auto out of the trough is undoubtedly a big challenge.
This equity change is undoubtedly a huge pressure for Cai Jianjun and other executives. Faced with huge losses and increased market competition, they needed to find effective solutions to stabilize the situation and reverse the decline. For them, this is not only a challenge, but also an opportunity to prove their abilities. I hope that through wisdom and hard work, they can lead Ruilan Auto out of the predicament and return to the top. Geely Automobile, Ruilan Automobile, Cai Jianjun, Ruilan Automobile, Ruilan Automobile