Company: ZK
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001410578-25-000390
Chunk: 197

Company: ZEEKR Intelligent Technology Holding Ltd
Filing Date: 2025-03-20
Form: 20-F
Item: Item 5
Chunk 197
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   December 31,   ​    
​                                                                            2021                   2023        
Grant date fair value of the underlying share (HKD per share)    ​           31.2       ​           9.34        
Exercise Price (HKD per share)                                   ​           32.7       ​           9.56        
Expected term                                                                   7   years              8   years
Expected volatility                                                         48.66       %          46.20   %    
Expected dividend yield                                                         2       %           1.49   %    
Risk free rate                                                               0.55       %           3.74   %    
Exercise multiple                                                             2.8                    1.5   ​    
Expected forfeit rate                                                         8.3       %            7.0   %    
​

1)   Grant date fair value of the underlying share
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Closing price of ordinary share of Geely Auto as traded on the Hong Kong Stock Exchange

2)   Expected volatility
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Expected volatility is assumed based on the historical volatility of Geely Auto in the period equal to the expected life of the grant.

3)   Expected Term
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The expected term was the life of options extracted from option agreements.

4)   Risk-free rate
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Risk-free rate was estimated based on yield curve of Hong Kong Government Debt yield as at the grant date.

5)   Expected dividend yield
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The expected dividend yield was estimated by Geely Auto based on its expected dividend policy over the expected term of the options.

107

6)   Exercise multiple
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Assumption on exercise multiple is made with reference to academic research.

7)   Expected forfeiture rate (per annum):
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Employee forfeiture rate was estimated by the management using employee resignation statistics.
Product warranties
We provide standard product warranties on all new vehicles and batteries and other components. We accrue a warranty reserve for the products, which includes best estimates of projected costs to repair or replace items under warranties or recalls if identified, factoring into estimated claims under the manufacture warranty provided by the manufacturing factories. No recall has been identified as of the reporting date. These estimates are primarily based on the estimates of the nature, frequency and average costs of future claims borne by us. These estimates are inherently uncertain given our relatively short history of sales, and changes to the historical or projected warranty experience may cause material changes to the warranty reserve in the future. We reevaluate the adequacy of the warranty accrual on a regular basis.