Since 2024, the domestic automotive market has continued to be "internalized", and market competition has become increasingly fierce. Despite this industry trend, Geely Automobile Holdings Limited (hereinafter referred to as "Geely Automobile", 0175. HK) still delivered a good transcript.
On June 28th, Geely Automobile released its first quarter financial report for 2024. Data shows that Geely Automobile achieved a revenue of 52.3 billion yuan in the first quarter, a year-on-year increase of 56%; Realized a net profit attributable to shareholders of the listed company of 1.561 billion yuan, a year-on-year increase of 119%.
A reporter from China Business Daily noticed that in the face of a complex and ever-changing industry environment, Geely Automobile adheres to a high-quality development path, continuously optimizes its product structure and improves operational efficiency. In the first quarter, Geely Automobile's gross profit reached 7.15 billion yuan, a year-on-year increase of 51%.
According to a research report by Guojin Securities, Geely Automobile's performance in the first quarter met expectations and achieved a strong start. "Supported by brand transformation and the new car cycle, it is expected that Geely Automobile's business situation will continue to rise in the second quarter, and sales will remain strong."
In the fiercely competitive market environment, Geely Automobile has achieved record highs in both revenue and profit, reserving stable cash flow for improving product value and service quality. As of March 31, 2024, Geely Automobile's total cash level reached 39.4 billion yuan.
According to the previously announced plan, Geely Automobile will accelerate the pace of new energy transformation and intelligence in 2024, continue to focus on creating high-value products, and achieve a sales target of 1.9 million units for the whole year, an increase of 13% compared to the total sales in 2023. Multiple forms of energy vehicles will develop in a balanced manner, advancing side by side. The sales target for new energy vehicles will increase by more than 66% compared to the total sales achieved in 2023.
Data shows that from January to May this year, Geely Automobile sold a total of 789645 vehicles, a year-on-year increase of over 45%, and completed 41% of its annual sales target of 1.9 million vehicles as planned. Among them, Geely Automobile's total sales of new energy vehicles reached 254226, a year-on-year increase of about 126%.
Geely, Lingke, and Jike are the three important grippers. Geely Galaxy is positioned in the mid to high end new energy field, and the Galaxy L7 has delivered 100000 vehicles in just one year since its launch, ranking first in the electric hybrid SUV market. The first pure electric sedan of Galaxy, Galaxy E8, was launched in January, and together with Galaxy L7 and Galaxy L6, it continues to deepen the market for high-value new energy intelligent boutique cars worth 100000 to 200000 yuan. In the first quarter, Geely's car sales exceeded 380000 units, while Geely Galaxy achieved positive month on month sales growth for three consecutive months from March to May.
The reporter learned that in order to further improve the user travel experience, Geely Galaxy is continuously improving the model matrix of pure electric, electric hybrid, sedan, and SUV. In May, the first pure electric SUV, Geely Galaxy E5, made its global debut, integrating GEA's global intelligent new energy architecture, 11 in 1 intelligent electric drive, Shendun short knife battery, Galaxy Flyme Auto and other industry black technologies. In addition, as the first global intelligent boutique car to anchor the global market in the Geely Galaxy series, the Geely Galaxy E5 gathers Geely's resources in global research and development, global standards, global intelligent manufacturing, global services, and other fields. Both left-hand and right-hand drive vehicles are developed and tested simultaneously, meeting regulatory requirements in 89 countries around the world. It also passes strict European standards and has obtained the four most authoritative safety certifications in the world.
Lynk&Co is also continuously laying out its model matrix. Following the Lynk&Co 08 EM-P becoming one of the most popular plug-in hybrid SUVs priced above 200000 yuan, the Lynk&Co 07 EM-P was launched in May, injecting fresh blood into the mid size electric hybrid sedan segment priced below 200000 yuan. Its first pure electric sedan, the Lynk&Co Z10, was launched globally in June and entered the ranks of luxury pure electric sedan rookies. Supported by millions of users, Lynk&Co achieved sales of 61056 vehicles in the first quarter, with sales climbing to 21778 vehicles in May. The proportion of new energy sales reached a record high of 57%.
Jike, based on the luxury intelligent pure electric track, rang the bell on the New York Stock Exchange 37 months after its establishment, setting a record for the fastest IPO by new forces. As of the end of May 2024, Jike has delivered over 260000 vehicles since its establishment, winning the sales crown of Chinese pure electric brands worth over 200000 yuan in 2024. Among them, the Jike 001 took 972 days to become the fastest high-end pure electric vehicle in China to deliver over 200000 units. Thanks to user recognition and improved operational efficiency, Jike achieved a record high revenue of 14.7 billion yuan in the first quarter of 2024.
According to a research report by Guojin Securities, the market performance of Jike has been validated by its explosive strategy of "mismatched competition". The sales of Jike 001 remain strong, continuously winning the top spot in the high-end pure electric market. The new Jike MIX currently has no competitors on the market, and it is expected to have considerable sales after its launch. In the future, as the proportion of sales of high gross profit models increases, Jike's net loss is expected to shrink.
In addition, in overseas markets, Geely Automobile's sales in May increased by about 68% year-on-year. The all-new Preface made its debut in Saudi Arabia overseas, and three star SUV models were launched in the Mexican market. Geely Automobile's overseas product matrix is accelerating expansion.
The reporter noticed that Geely Automobile has always focused on innovation in intelligent technology and safety technology. In the first half of the year, Geely Raytheon Power received the first "New Energy Vehicle Hybrid System Reliability Certification" from the China Automotive Center, and the "Galaxy Flyme Auto" intelligent cockpit system jointly developed by Geely and Xingji Meizu was released. The self-developed and self-produced Shendun Short Knife Battery leads the safety standards of power batteries.
Taking the Shendun short knife battery as an example, it can achieve a replenishment rate of up to 80% in 17 minutes and an average charging rate of 2.45C in terms of ultrafast charging. In addition, the Shendun short knife battery has a cycle life of 3500 cycles and can safely travel over 1 million kilometers.
"In the future, Geely Automobile will focus on technological innovation, accelerate the construction of new energy and intelligence, develop new quality productivity, and achieve high-quality development," said Geely Automobile.