Geely's revenue exceeded 100 billion, and these car companies have achieved remarkable results

On March 23, 2022, Geely Automobile disclosed the 2021 annual performance announcement, which showed that in 2021, Geely Automobile sold a total of about 1.33 million units, achieved operating income of 101.6 billion yuan, an increase of 10.3% year-on-year, and achieved a net profit of 4.35 billion yuan, which was an eye-catching performance. In recent years, Geely Automobile's R&D investment has increased year by year, and the transformation of new energy has gradually shown results. In addition, other car companies have also released their 2021 annual financial reports, and many companies have performed well.

Source: Photo Network

Technology licensing and R&D services revenue up 245%

In 2021, Geely Automobile (stock code: 00175. HK) sold 1.33 million units of automobiles, including 1.21 million units in China wholesale and 115,000 units in exports, which was basically the same as the sales volume in 2020. The overall average bicycle revenue was 87,672 yuan, an increase of 9.0% year-on-year.

According to the data of the National Passenger Association, Geely Automobile has won the top spot in the sales of Chinese brand passenger cars for five consecutive years, and in 2022, Geely Automobile has set its sales target at 1.65 million units.

Behind the high sales volume and high profitability is Geely Automobile's increasing R&D investment year by year. Data show that in recent years, Geely Automobile R & D investment has increased year by year, in 2021, Geely Automobile's total R & D investment of 5.5 billion yuan, an increase of 16.1% year-on-year, R & D investment accounted for 5.5% of revenue, an increase of 0.2 percentage points year-on-year, the total R & D investment in the past 5 years totaled 25.6 billion yuan.

Geely Automobile mentioned in the "Smart Geely 2025" strategy released in 2021 that it is necessary to continue to promote Geely's accelerated transformation into the era of the new four modernizations, build Geely's full-stack self-developed ecosystem in core technologies such as new energy, automatic driving, intelligent networking, and intelligent cockpit, and build Geely into a technology-led global automotive enterprise.

Strengthen the science and technology ecosystem and create a science and technology moat.

Geely Automobile increased its investment in intelligence and new energy in last year's R&D investment, mainly focusing on the investment in Extreme Kr and Raytheon Power. It is understood that Geely Automobile launched a new intelligent high-end electric brand Krypton Automobile in early 2021, and the brand's first new car ZEEKR001 began delivery in October 2021, with a total of 6,007 units delivered throughout the year. In 2022, Geely Automobile set the sales target of 70,000 units, and it is understood that in the next three years, Extreme Kr will launch 6 new products.

Geely Automobile Group CEO Gan Jiayue said at the 2021 annual results conference held by Geely Automobile on March 23 that in 2022, Geely will continue to increase investment in research and development of new energy products, and make full efforts on pure electricity, super hybrid, alcohol-electric hybrid, power exchange and other tracks.

The high investment in research and development has also won the market return for Geely Automobile. In 2021, Geely Automotive's technical licensing and R&D services have achieved revenue of 4.5 billion, an increase of 245% over 2020. Among them, the technology licensing revenue was 1.275 billion yuan, an increase of 125% year-on-year, and Geely Automobile's technical licensing and technical service revenue will maintain a stable growth trend in the future.

Some rejoice and some are worried

According to the Choice financial terminal, since 2022, in addition to Geely Automobile, a number of domestic auto companies have announced their 2021 annual results, including Guangzhou Automobile Group (stock code: 601238. SH), Great Wall Motor (stock code: 601633. SH), Jiangling Motors (stock code: 000550. SZ), Haima Automobile (stock code: 000572. SZ) performed well, Foton Motor (stock code: 600166. SH), Beiqi Blue Valley (stock code: 600733. SH) made a loss.

On January 11, 2022, GAC Group released its 2021 annual performance forecast, which shows that the net profit attributable to shareholders of listed companies in 2021 is expected to be about 6.6 billion yuan to 7.6 billion yuan, an increase of about 11% to 27% year-on-year, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses is about 5.6 billion yuan to 6.7 billion yuan, an increase of about 16% to 39% compared with the same period last year. In fiscal 2021, GAC Group overcame difficulties such as chip shortages, rising raw material prices, and repeated epidemics, and achieved steady growth in production and sales throughout the year and a steady improvement in operational efficiency through product structure adjustment and cost control measures.

On January 23, 2022, Great Wall Motor released its 2021 annual performance forecast, which shows that Great Wall Motor achieved operating income of 136.3 billion yuan in 2021, an increase of 32% year-on-year compared with 2020, a net profit attributable to the shareholders of the company of 6.782 billion yuan, an increase of 26.47% year-on-year, a net profit of 6.781 billion yuan, an increase of 26.45% year-on-year, and basic earnings per share of 0.74 yuan. In 2021, Great Wall Motors will firmly transform global intelligent technology companies, concentrate on electrification, intelligent technology innovation and global development, deepen category innovation and user operation, and improve system strength and ecological construction. During the year, sales increased and model structure improved, which contributed to the increase in performance.

On January 25, 2022, Jiangling Motors released the 2021 annual performance express, which shows that Jiangling Motors achieved operating income of 35.2 billion yuan in 2021, an increase of 6.42% year-on-year compared with 2020, and achieved a net profit attributable to shareholders of listed companies of 570 million yuan, an increase of 4.26% year-on-year. In 2021, Jiangling Motors' performance growth was mainly due to higher sales, continuous promotion of cost reduction and efficiency, and profit growth from receiving government subsidies.

On January 29, 2022, Haima Automobile released its 2021 annual performance forecast, which shows that Haima Automobile will achieve a net profit attributable to shareholders of listed companies in 2021 of 80 million yuan to 120 million yuan, an increase of 105% to 107% year-on-year. In 2021, Haima Automobile's performance improved year-on-year, mainly due to the significant year-on-year increase in sales of new products Haima 7X and export products listed last year.

However, a few joys and some sorrows, the above-mentioned companies in 2021 performance is eye-catching, and some companies are not performing satisfactorily.

On January 29, 2022, Foton Motor released the 2021 annual performance pre-loss announcement, which showed that the net profit attributable to the shareholders of the listed company in 2021 is expected to be about -5.035 billion yuan. Foton Motor's performance pre-loss was mainly affected by the impairment of Beijing Borgward Automobile Co., Ltd.'s related matters, mainly including the balance and interest of Beijing Borgward's equity transfer, Beijing Borgward's shareholders' borrowings and interest, Beijing Borgward's current arrears, long-term equity investment, and the total profit affected by the above-mentioned impairment is expected to be about -4.704 billion yuan. In addition, considering that the company's total profit from the recognition of investment income due to the holding of Beijing Borgward's equity is expected to be -5.326 billion yuan.

On January 29, 2022, Beiqi Blue Valley released the 2021 annual performance pre-loss announcement. Beiqi Blue Valley expects net profit attributable to shareholders of listed companies in 2021 to be -4.8 billion yuan to -5.3 billion yuan. In 2021, affected by the market environment and the supply of raw materials, the production and sales volume of Beiqi Blue Valley did not meet expectations, the existing gross profit could not cover the inherent cost expenses, the impact on the company's performance was about 20-2.5 billion yuan, Beiqi Blue Valley increased brand communication, advertising and operation and other sales expenses increased, the impact on performance was about 1.7 billion yuan, the company increased R & D investment, and the R&D expenses had an impact on performance of about 1.1 billion yuan.