Geely moves into consumer electronics

Bloomberg

Li Shufu, chairman of carmaker Geely Automobile (0175), is expanding his manufacturing empire to include smartphones and consumer electronics by acquiring a majority of shares in Android device maker Meizu Technology.

Founded nearly 20 years ago, Meizu was one of the pioneers of China's fast-follower cadre of phone makers who built up their market by closely imitating the look and feel of Apple's iPhone. Hubei Xingji Shidai Technology, a mobile device company founded by Li in 2021, has signed an agreement to acquire 79.09 percent of Meizu, according to a company statement released by Xingji Technology.

Meizu will continue to operate as an independent brand, while Xingji is developing "a portfolio of next-generation smartphones, mobile devices, and wearable smart devices that will utilize XR technologies." Extended reality (XR) tech is a broad umbrella term for augmented and virtual reality applications, services, and devices.

Under the agreement, the two companies will "collaborate to integrate mobile technologies" and provide users with "bundled cross-platform services," the statement said.

Geely is accelerating its shift toward a more electrified, intelligent, and upscale product portfolio to capitalize on growing demand from Chinese car buyers. It launched a dedicated electric-car brand, Zeekr, in 2021 as a combination of the characteristics of a tech company with Geely's carmaking expertise, its president An Conghui said last year.