Geely Auto: Expected Q1 net profit to increase by 220%-270% year-on-year, with sales reaching a record high | Financial Report Insights

Geely Auto expects that net profit in Q1 2025 will reach RMB 5.2 billion to 5.8 billion, a substantial increase of 220%-270% compared to the same period in 2024. The significant improvement in profitability is mainly attributed to the group's record-high sales this quarter, strong growth in the new energy business, optimization of product structure, and the highlighting of scale effects.

On April 10, Geely Auto announced its profit forecast:

Expected for Q1 2025:

• Before accounting policy changes, net profit is expected to be RMB 11.6 billion to 12.3 billion, a year-on-year increase of 640% to 690%;
• After accounting policy changes, net profit is expected to be RMB 5.2 billion to 5.8 billion, a year-on-year increase of 220% to 270%.

Record-high sales, rapid expansion of export business

According to the announcement, the significant growth in the company's performance in the first quarter mainly comes from two aspects:

1. Inherent business growth: Sales in the first quarter reached a record high, especially the strong growth in the new energy business became the main driving force. At the same time, the optimization of product structure and the increasingly prominent scale effects have significantly enhanced the company's overall profitability.
2. Contribution from exchange rate gains: With the rapid expansion of Geely's export business, fluctuations in foreign exchange rates brought the company a post-tax net gain of RMB 2 billion to 2.3 billion, and this non-recurring income played a significant role in enhancing this quarter's performance.

Geely Auto stated that during the reporting period, the group firmly promoted the transformation to new energy, accelerated the layout of its globalization strategy, focused on the comprehensive AI intelligence layout, and aimed to become a technology company with strong intelligent manufacturing capabilities.

Last month, Geely Auto announced its 2024 financial report. The data showed that Geely not only broke through RMB 240 billion in revenue for the first time but also delivered impressive results with a year-on-year surge of 213% in net profit attributable to the parent company, a new energy penetration rate exceeding 50%, and global exports surpassing 410,000 units.

Some analysts believe that the rapid growth in Geely Auto's sales hides two key transformations. First, it is the diversification breakthrough of its technological path. Geely has established a multi-brand matrix with ZEEKR focusing on high-end pure electric, Lynk & Co emphasizing hybrid globalization, and Geely Galaxy achieving full coverage of the mainstream market, creating a three-dimensional technological moat of "pure electric + hybrid + intelligent ecology."

On the other hand, Geely is achieving new breakthroughs through high-end value reconstruction. Among them, the average price of the ZEEKR brand exceeds RMB 300,000 while still achieving an 87% growth, and Lynk & Co's overseas unit price has surpassed EUR 40,000. This marks that Chinese car companies are beginning to master "pricing power," supported by Geely's full-stack self-research capabilities in core areas such as self-developed golden brick batteries, the Qianli Haohan system architecture, and the SEA Haohan platform