Geely Auto's revenue in 2024 exceeds 240 billion, with a net profit growth of 213% year-on-year, and total sales of 2.177 million vehicles | Financial Report Insights

Geely Auto achieved a dual breakthrough in revenue and profit in 2024. Annual revenue reached 240.2 billion yuan, surpassing the 200 billion yuan mark for the first time, a year-on-year increase of 34%. Despite the fierce competition and slowing growth in the Chinese automotive market, Geely still achieved significant growth.

Net profit increased significantly by 240% year-on-year to 16.8 billion yuan, with net profit attributable to shareholders, excluding one-time items, at 8.52 billion yuan, a year-on-year increase of 52%. Notably, this performance was achieved in an environment of accelerated transformation to new energy and intensified competition, reflecting the effectiveness of the company's strategy.

The company's gross profit margin improved by 0.6 percentage points year-on-year to 15.9%, mainly due to economies of scale, product structure optimization, and cost control brought about by technological improvements. The board of directors proposed a final dividend of HKD 0.33 per share, a 50% increase from last year, demonstrating the company's commitment to shareholder returns.

Significant Changes in Sales Structure, New Energy Vehicles Become the Main Force

In 2024, Geely Auto's total sales reached 2.177 million vehicles (including Lynk & Co brand sales), a year-on-year increase of 32%, exceeding the initial target of 2 million vehicles set at the beginning of the year. Among them, new energy vehicle sales reached 888,000 units, a substantial year-on-year increase of 92%, accounting for 41% of total sales, further consolidating Geely's leading position in the Chinese new energy vehicle market.

At the brand level, Geely Galaxy's annual sales reached 494,000 units, a year-on-year increase of 80%; the luxury new energy brand ZEEKR delivered 222,000 units for the year, a year-on-year increase of 87%; Lynk & Co brand sales reached 285,000 units, a year-on-year increase of 30%, with new energy sales accounting for 59%.

In overseas markets, Geely Auto's export performance was impressive, with export wholesale volume reaching 415,000 units, a year-on-year increase of 57%, setting a historical high and further expanding Geely's global market influence.

Strategic Adjustments Optimize Resource Allocation, Brand Matrix Becomes Clearer

In 2024, Geely Auto made a series of strategic adjustments to optimize resource allocation. From the integration of the Geometry brand into Galaxy to the strategic integration of ZEEKR and Lynk & Co, the company is achieving more efficient resource synergy and avoiding internal competition.

The Galaxy brand focuses on new energy vehicles based on the GEA architecture, launching popular products such as Galaxy E5, Star Wish, and Starship 7; the ZEEKR brand continues to position itself in the high-end pure electric market, with ZEEKR 001, ZEEKR 7X, and ZEEKR 009 leading the luxury pure electric market; the Lynk & Co brand is fully transitioning to new energy, with new energy products accounting for 59% of its sales.

In May 2024, ZEEKR successfully completed its IPO, raising approximately USD 480 million, providing funding support for its future development. The company also increased its stake in ZEEKR by approximately 11.3% for USD 806 million, further consolidating control over its core business.

Technological Innovation Drives the Future, AI Layout Accelerates

In 2024, Geely Auto continued to increase its investment in R&D, with annual R&D expenses reaching 10.4 billion yuan, a year-on-year increase of 33%. The company launched 9 new new energy vehicle products and plans to release multiple new models in 2025, further expanding its new energy product matrix In terms of technological layout, the company has completed a comprehensive artificial intelligence layout, including the Xingrui Intelligent Computing Center with a computing power of 23.5 EFLOPS and the automotive industry's first fully self-developed large model "Geely Xingrui AI Large Model," which is the only automotive large model to receive the 4+ level certification from the China Academy of Information and Communications Technology. At the same time, the company has accumulated data from over 7.5 million vehicles with L2-level and above intelligent driving capabilities, with actual driving data totaling over 10 billion kilometers.

Financial Status is Stable, Cash Flow is Abundant

As of December 31, 2024, Geely Auto's financial status remains stable. The net cash generated from operating activities reached CNY 26.51 billion, and total cash levels (bank balances and cash, as well as restricted bank deposits) increased by 15% to CNY 43.75 billion. The company's total borrowings decreased by 35% to CNY 3.94 billion, and net cash increased by 40% to CNY 39.8 billion.

The company's current ratio is 0.99, down from 1.17 at the end of 2023, but still maintains a relatively reasonable level. The capital debt ratio decreased from 7.6% to 4.5%, reflecting the company's strategy to reduce leverage.

In 2024, the company's capital expenditure was CNY 13.31 billion, mainly used for new energy and intelligent transformation as well as research and development investments. The company expects capital expenditure in 2025 to be approximately CNY 15 billion, primarily for the research and development of new models and intelligent technologies, as well as upgrades to existing factory production facilities.

Future Outlook and Risks

In the face of global macroeconomic uncertainties and intensified industry competition, Geely Auto will promote sustainable development around the five strategies proposed in the "Taizhou Declaration." The company has set a sales target of 2.71 million vehicles for 2025, an increase of approximately 25% compared to 2024.

In terms of technology, the company will continue to enhance existing technologies such as vehicle architecture, electronic and electrical architecture, super electric hybrid, and batteries, while achieving full-stack self-development of core intelligent vehicle technologies through comprehensive artificial intelligence layout.

In terms of globalization, the company will continue to expand overseas markets and adopt targeted strategies based on regional markets, while actively seeking cooperation with international partners to address global trade barriers and tariff risks.

However, the company also faces some risks, such as foreign exchange fluctuation risks. In 2024, the company experienced significant foreign exchange losses, mainly due to currency fluctuations in emerging markets and extended payment terms for export business. The company has implemented comprehensive risk management strategies, including entering into foreign currency forward contracts and increasing the proportion of local currency costs in overseas factories to mitigate risks.

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