Revenue in the first quarter was 52.3 billion! Geely's good results are because of the secret of the word "high"?

Kung Fu shooting

2024-06-30 16:03Creator in the automotive field

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01Geely Holding achieved revenue of 52.3 billion yuan in the first quarter, a year-on-year increase of 56%, and a net profit of 1.561 billion yuan, a year-on-year increase of 119%.

In terms of 02 sales, Geely Automobile's sales in the first quarter reached 475,700 units, a year-on-year increase of 49%.

03Among them, the sales of new energy vehicles increased by 126% year-on-year to 254,226 units, ranking among the top three in the industry.

04The success of Geely's new energy products is supported by high-quality products and technologies.

05As a result, Geely Automobile has shown strong momentum in the field of new energy, laying the foundation for achieving the annual sales target of 1.9 million units.

Technical support is provided by Tencent Hybrid Model

The sluggish consumption environment and the continuous price war have shrouded the entire auto industry in a cold air.

In this case, the more companies can stick to their original intentions, the more they can stand out in an unfavorable environment.

Li Shufu, chairman of Geely Holding, said during the China Automotive Chongqing Forum earlier: "Healthy competition is the key to high-quality development. ”

In the financial report for the first quarter of this year, Geely showed phased results of high-quality development.

In the first quarter of 2024, Geely achieved revenue of 52.3 billion yuan, a year-on-year increase of 56%; The net profit attributable to shareholders of the listed company was 1.561 billion yuan, an increase of 119% year-on-year.

In terms of sales, Geely Automobile's sales in the first quarter reached 475,700 units, a year-on-year increase of 49%, and from January to May, the group's cumulative sales volume reached 789,645 units, a year-on-year increase of more than 45%, of which the sales of new energy vehicles increased by 126% year-on-year to 254,226 units, showing the company's strong momentum in the field of new energy.

This hard-won "report card" reflects Geely's strength and confidence in the cold winter.

In the view of Kung Fu Auto, Geely's sales performance in the first quarter actually has two core points. For example, the breakthrough of the new energy camp, as well as the support of technology.

Among them, the core is the performance of new energy vehicles, after all, as the current "main battlefield", this not only represents the most forward-looking development direction of the enterprise, but also can affect the morale and potential energy of the team and system.

(1) With the concerted efforts of high-quality products, Geely New Energy is firmly at the head of the industry

In the first five months of this year, Geely New Energy's total sales reached 254,226 units, a year-on-year increase of about 126%, and it has maintained a year-on-year growth for three consecutive months. This achievement is second only to BYD and Tesla in the field of new energy, and it is firmly in the top three.

Geely New Energy has been able to achieve such results thanks to Geely's high-quality products in the new energy product matrix.

For example, ZEEKR, which was successfully listed on the New York Stock Exchange last month, with the strength of the two popular products of ZEEKR 001 and ZEEKR 007, in the first quarter of 2024, ZEEKR's revenue will reach a record high of 14.7 billion yuan, and it has also become the only high-end new energy brand that adheres to the pure electric track in addition to NIO, and it also makes ZEEKR bite Tesla in the list of new forces.

Among them, ZEEKR 001 has been delivered more than 10,000 for two consecutive months after the renovation, and the strength verifies the quality of the explosive model, which is placed in such an involuted pure electric market segment, which shows the strength and confidence of ZEEKR. At the same time, the ZEEKR MIX, which will be launched in the second half of the year, will also provide more support and assistance for the future monthly sales of 20,000 units of ZEEKR.

In the mid-to-high-end new energy track, the combination of Lynk & Co New Energy and Geely Galaxy has also allowed Geely to gain more say in the 100,000-200,000 yuan market segment.

Let's talk about Lynk & Co first, after the Lynk & Co 08 EM-P became a hit last year, Lynk & Co's sales continued to stand at the high ground of monthly sales of more than 10,000, and with the arrival of the Lynk & Co 07 EM-P and Lynk & Co Z10 two new cars, Lynk & Co will undoubtedly gain more weight in the plug-in hybrid and pure electric markets.

Geely Galaxy, on the other hand, has made it a major manufacturer with the fastest delivery of 100,000 new energy series products in only 8 months through 3 products and a plug-in hybrid + pure electric dual-track layout.

What's more, Geely Galaxy models are all mainstream - Galaxy L6, Galaxy L7, and Galaxy E8 have all become the top 3 in their respective market segments. In the first quarter, Geely brand sales exceeded 380,000 units, and Geely Galaxy achieved positive sales growth for three consecutive months from March to May.

The next appearance of Geely Galaxy E5 will bring a quantum and qualitative leap to the Geely Galaxy series. Galaxy E5 is positioned in the A-class family pure electric SUV market, with the world's most appreciated original design, GEA's global intelligent new energy architecture, 11-in-1 intelligent electric drive, Aegis short knife battery, Galaxy Flyme Auto and other industry-leading technologies in one, so that the three value experiences of "good looking, easy to drive, and good intelligence" are upgraded.

The outbreak of a number of high-quality products from ZEEKR, Lynk & Co, and Geely Galaxy has allowed Geely to maintain a balanced layout from high-end to public collaboration in the field of new energy, and promoted Geely New Energy to be at the forefront of the industry.

(2) High-quality technology, consolidate the product foundation

Geely's new energy vehicles have strong product strength and have an advantage in market competition, and the most fundamental reason is that the vertical integration of the supply chain brought about by technology and self-research is comprehensively improved.

In order to consolidate the foundation of high-quality and sustainable development, Geely Automobile has always paid attention to intelligent technology and safety technology innovation.

In the first half of the year, at the power system level, Geely Leishen Power won the first "New Energy Vehicle Hybrid System Reliability Certification" certificate from the China Automotive Center. At the same time, in terms of software application, Geely also cooperated with Meizu to create the "Galaxy Flyme Auto" intelligent cockpit system, and self-developed and self-produced Aegis short knife battery with a new standard that is 8 times higher than the industry safety standard, firmly holding the core technology of the car in hand.

In addition, the technologies include self-development and external procurement of components, unified R&D and bidding of different product parts under the same platform, and optimization of wiring harnesses and accessories brought about by the collaboration of electronic and electrical architecture, each of which can achieve about 30% cost savings.

In addition, after the generalization of the platform, the product development efficiency has increased by 15%-20%, taking the SEA vast architecture as an example, there are already 11 models in use, and the cost of the product will be further controlled after the scale, which is one of the reasons for the further increase in Geely's net profit in the first quarter.

Finally, products at the same price will have more product power advantages than competing products at the same level, and at the same price, they will bring users more experience value.

(3) Kung Fu shooting

The industry is still rolling, price wars, and traffic wars have disturbed many car companies to begin to shake their confidence and go with the flow.

However, Geely's unwavering adherence to its "strategic determination" is the core of maintaining sustainable growth and high-quality development, and it is also the key to verifying Geely's core technical capabilities and system strength.

In 2024, Geely has set a full-year sales target of 1.9 million units, an increase of 13% compared to the total sales in 2023, and the good start of the first quarter is undoubtedly a good start to achieve the full-year target.

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