Editor's note: The group's management team has decided to raise its annual sales target by about 5%, from 1.9 million units to 2 million units, making Geely the first company to raise its sales target in 2024.
Geely Automobile, which "seeks progress while maintaining stability", has once again come to the forefront of the automotive industry.
A few days ago, Geely Automobile Holdings Co., Ltd. released the first quarter of 2024 financial report showing that the company achieved revenue of 52.3 billion yuan in the current quarter, a year-on-year increase of 56%; The net profit was 1.561 billion yuan, an increase of 119% year-on-year.
In the latest sales data, Geely Automobile's total sales in June were 166085 vehicles, up 24% year-on-year. At the same time, the Group's management team decided to raise its full-year sales target by about 5%, from 1.9 million units to 2 million units, making Geely the first company to raise its sales target in 2024.
Revenue and profit both hit new highs
Thanks to the continuous optimization of Geely's product structure, the operational efficiency continued to improve. In the first quarter, Geely Automobile's gross profit reached 7.15 billion yuan, an increase of 51% from 4.747 billion yuan in the same period last year; Among them, the profit in the first quarter was 1.418 billion yuan, compared with 405 million yuan in the same period last year, and the profit attributable to the company's equity holders was 1.561 billion yuan, an increase of 119% from 714 million yuan in the same period last year.
In a fiercely competitive market environment, it is not easy to achieve record revenues and profits. This is not unrelated to the fact that Li Shufu, chairman of Geely Holding Group, has a clear understanding of the development of Geely Automobile, he said that the company's basic plate should be supported by fuel vehicles, but new increments, new businesses, and new profit points must rely on new energy.
According to the data, in the first half of 2024, Geely Automobile's new energy will have a total sales volume of 411,000 units under the three major brands of Geely, Lynk & Co, and Zeekr, which has also laid a solid foundation for Geely Automobile's half-year financial report to a certain extent.
In addition, traveling lightly has also made Geely's financial report much more "good-looking". As we all know, Geely Automobile has many brands, and the investment of too many brands has consumed a lot of Geely Group's capital and reduced profitability. According to the financial report, Geely Automobile's net profit continued to fall from 12.55 billion yuan to 4.847 billion yuan from 2018 to 2021. Geely's net profit in the first half of 2023 is only 1.57 billion yuan. As of the end of the third quarter of 2023, Geely Holding's total assets were 640.399 billion yuan, and its total liabilities were 441.599 billion yuan, an increase of 61 billion yuan from the end of the previous year, and the asset-liability ratio was 68.96%, which is close to the warning line of the company's asset-liability ratio.
In November 2023, Geely Holding announced that it had reduced its stake in Volvo Cars by about 100 million shares, involving an amount of about US$350 million, and its shareholding ratio was reduced from 82% to 78.7%; In January 2024, Geely Holding sold nearly $680 million worth of Volvo Group's shares to win more financial support for the transformation of electrification and intelligence, and on February 20, Geely Automobile announced the sale of 45% of the shares of Ruilan Automobile, and will no longer hold Ruilan Auto after the transaction is completed.
This series of operations not only allowed Geely Automobile to "regain blood", but also made its funds more abundant; In addition, with the successful IPO of ZEEKR in the United States, the hematopoietic capacity of Geely Holding's various sections has also been further strengthened.
The sales volume of the whole line of products is up
In addition to Geely Automobile's improvement of its "hematopoietic" function, the steady growth of sales of the company's products is also the key to its continued upward trend. According to the data, Geely Automobile showed good momentum in the first six months, and Geely Group sold 955739 vehicles from January to June, which has achieved 50.3% of its original target sales.
Among them, the company's Galaxy, Lynk & Co, and Zeekr have also achieved comprehensive growth. Geely Galaxy is positioned in the field of mid-to-high-end new energy, and the Galaxy L7 has completed the delivery of 100,000 units in only one year after its launch, and now the sales volume of the Galaxy brand has stabilized at more than 10,000 per month. According to the latest sales data, the Galaxy brand sold 15,975 vehicles in June, with a cumulative sales volume of 81,414 units in the first six months, and the Galaxy has achieved positive growth for four consecutive months after March;
After the Lynk & Co 08 EM-P became one of the most popular plug-in hybrid SUVs of more than 200,000 yuan, the Lynk & Co 07EM-P was launched in May, injecting fresh blood into the field of medium-sized electric hybrid cars within 200,000 yuan, and its first pure electric sedan Lynk & Co Z10 made its world premiere in June. With the support of users, Lynk & Co achieved sales of 61,056 units in the first quarter, and sales climbed to 24,439 units in June, with a cumulative sales volume of 126,000 units in the first half of the year, a year-on-year increase of 54%;
ZEEKR not only successfully IPO in 37 months, setting a record for the fastest IPO of a new force, but also maintained positive growth in sales. According to sales data, ZEEKR sold 20,106 vehicles in June, a year-on-year increase of 89%, and a cumulative sales volume of 87,870 units in the first half of the year, a year-on-year increase of 106%.
For OEMs, sales volume is always the core driver of performance, followed by profitability. Today, Geely Automobile has undoubtedly been at the forefront of its own brands with its excellent profitability and continuous upward sales.