In 2024, the word “competition” has dominated the automotive industry for most of the year.

Automakers have been striving to outdo each other in technology, products, services, marketing, pricing, and more. The entire industry generally faces the situation of increased revenue without commensurate profit growth, and some automakers have even experienced declines in both revenue and profit, putting them under immense pressure.

Remarkably, amidst this backdrop, one automaker has bucked the trend, delivering a mid-year performance far exceeding expectations, significantly boosting market confidence.

This automaker is Geely.

Geely's revenue exceeded 100 billion yuan in the first half, exceeding sales expectations

In the first half of 2024, Geely Automobile achieved a total revenue of 107.3 billion yuan, a record high, with a significant year-on-year increase of 47%. Shareholders' profit reached 10.6 billion yuan, a staggering 574.7% year-on-year increase. Excluding non-recurring items, shareholders' profit amounted to 3.37 billion yuan, a 114% year-on-year growth.

This outstanding performance is primarily attributed to Geely Automobile's sales exceeding expectations.

In the first half, Geely Automobile Group sold a total of 956,000 vehicles, a record high, representing a year-on-year increase of approximately 41%. Sales have been consistently growing both year-on-year and month-on-month for three consecutive months. Geely brand sales reached 742,000 vehicles, a 34% year-on-year increase, maintaining a year-on-year growth in monthly sales for 18 consecutive months.

Regarding another core metric, profitability, Geely's gross profit totaled 16.2 billion yuan, a substantial increase from 10.54 billion yuan in the same period last year. Gross margin reached 15.1%, showing a steady increase.

Currently, apart from Geely, only BYD, Lixiang, Changan, and Great Wall have gross margins above the 12% threshold.

In terms of cash flow, which is of utmost concern to all, Geely's net cash level increased by 25.4% to 35.7 billion yuan, also a record high, indicating ample financial resources. According to Dai Yong, Deputy CFO of Geely Automobile Group, Geely places great importance on rewarding minority shareholders and plans to maintain a stable and increasing dividend payout ratio in the future, enhancing the value of shareholders' investments. It is expected that the dividend payout ratio will exceed 30% of operating profit in 2024 and beyond.

Due to its exceptional financial performance, Geely has revised its annual sales target from 1.9 million to 2 million vehicles.

New energy transition accelerates, with product sales surging 117%

Another crucial data point in Geely's financial report is particularly noteworthy:

Cumulative new energy vehicle sales exceeded 320,000, a record high, with a robust year-on-year increase of approximately 117%.

This signifies that Geely's new energy transition has been highly effective.

Specifically, the mid-to-high-end new energy series, Geely Galaxy, recorded cumulative sales of 81,000 vehicles, a staggering 742% year-on-year increase, with monthly sales averaging over 10,000.

Driven by popular models such as the Lynk & Co 08 EM-P PHEV SUV, Lynk & Co sales grew rapidly, reaching a total of 126,000 vehicles in the first half, a robust 53.6% year-on-year increase. Among them, new energy vehicle sales totaled 64,000, accounting for 50.9% of total sales, setting a new high. As of the end of June this year, Lynk & Co's cumulative sales exceeded 1.17 million, setting a new record for high-end Chinese automotive brands.

ZEEKR delivered a total of 88,000 vehicles in the first half, a 106% year-on-year increase, claiming the top spot among Chinese pure electric brands with vehicles priced above 200,000 yuan in 2024. ZEEKR's annual sales target achievement rate leads among emerging players.

At the earnings conference, An Shiyue, Executive Director and CEO of Geely Automobile Holdings, emphasized that in the first half of 2024, Geely Automobile's share of new energy vehicle sales increased significantly, and its gasoline-powered vehicles regained the top spot among independent brands.

This confidence stems primarily from two aspects. Firstly, the strong growth momentum in sales, with each half-year setting new records. Secondly, the new energy segment, with the company's rational layout across various price ranges and the combined improvement of scale effects and intelligent technology, is poised to turn profitable soon.

The transformation of this automotive giant requires diverse technological support

Since Geely unveiled its new energy strategy and launched the mid-to-high-end new energy series, Geely Galaxy, last year, Geely Automobile has established a comprehensive layout in the new energy market.

From Polestar and ZEEKR to Lynk & Co, Galaxy, and Geometry, as well as smart, Volvo, and Lotus, Geely can be considered one of the most comprehensive and segmented automotive groups in new energy.

Such a vast transformation requires significant research and development investment and technological support.

The financial report reveals that in the first half of this year, Geely Automobile continued to increase its R&D investment, with total R&D expenditure reaching 7 billion yuan, a 17.9% year-on-year increase. The R&D efficiency has continued to improve, further enhancing the competitiveness of core products.

Taking Geely's self-developed GEA Global Intelligent New Energy Architecture as an example, this architecture, costing billions of yuan, integrates hardware, systems, ecosystems, and AI to provide modular architecture solutions featuring comprehensive safety, AI intelligence, versatile energy sources, high-quality driving control, and flexible space.

In terms of power batteries, Geely has independently researched and produced the Shendun Dao battery. This battery has achieved technological breakthroughs in safety, cycle life, fast-charging capabilities, and low-temperature discharge performance, setting the standard for safety and efficiency among the new generation of "blade-type" lithium iron phosphate batteries.

According to Geely Automobile, the Shendun Dao battery boasts a cycle life of up to 3,500 cycles and a safe driving range of up to 1 million kilometers. Assuming an average annual mileage of 20,000 kilometers for a typical family car, the Shendun Dao battery can last up to 50 years.

Furthermore, Geely Automobile has independently developed intelligent electric drive systems. For instance, the intelligent electric drive system equipped in Galaxy 11 is lighter and smaller than traditional systems, effectively enhancing vehicle handling performance while reducing overall energy consumption.

On the path of technological innovation, Geely Automobile has achieved numerous remarkable accomplishments. Among them, the Xingrui AI Computing Center showcases Geely's technological prowess. With a computing power of 81 petaflops per second, it can process data from 3.5 million vehicles in parallel, placing it at least five years ahead of the industry in terms of technology.

The self-developed basic large model, Xingrui AI Large Model, launched in January this year, is built on the computing power of the Xingrui AI Computing Center. It boasts the richest application scenarios, the most powerful computing power, the most comprehensive automotive professional knowledge system, and the most secure and reliable data and models in the automotive industry. It is also the world's first fully self-developed, full-scenario AI large model in the automotive industry.

Currently, multiple AI-native applications based on the Xingrui AI Large Model have been integrated into various smart electric products such as Galaxy L6, Galaxy L7, and Galaxy E8.

Li Donghui, CEO of Geely Holding Group, Vice Chairman and Executive Director of Geely Automobile Holdings, stated that to support the development of its automotive core business, Geely has deployed in various technological ecosystems, including basic research, architecture development, batteries, and chips. In the future, Geely will continue to make in-depth advancements in supply chain, manufacturing, R&D, quality management, global market expansion, and global capacity utilization. With the continuous emergence of synergies, Geely Holding's revenue will continue to grow.

Continuous deepening of the global market

Geely has always positioned itself as a global enterprise.

In recent years, Geely has leveraged its robust technology and unique designs to bring Chinese automotive brands to the international stage, gradually securing a place in the global automotive industry, showcasing the strength and charm of Chinese manufacturing. In the first half of this year, Geely Automobile achieved new breakthroughs in its overseas business.

Financial report data indicates that in the first half of 2024, Geely Automobile's cumulative exports reached 197,400 vehicles, a year-on-year increase of over 67%. In July, Geely Automobile exported 32,382 vehicles, a year-on-year increase of approximately 65%. Geely Automobile has revised its overseas export target upwards from 330,000 vehicles at the beginning of the year to 380,000 vehicles.

This outcome is a testament to the collective success of Geely's various brands.

Lynk & Co has continued to export products to Europe since announcing its “Europe Strategy” in 2021. Data shows that from the start of exports to the first half of 2024, Lynk & Co's global overseas shipments exceeded 72,000 vehicles.

In the European market, Lynk & Co has opened 12 experience stores in seven countries, with a brand recognition rate of 13%. Additionally, Lynk & Co has established 10 Lynk & Co centers and two Lynk & Co spaces in the Asia-Pacific region and officially entered the Azerbaijani and Philippine markets in the first half of this year. It has deployed sales outlets in eight markets, including the Middle East and Vietnam, offering multiple models.

Regarding ZEEKR, in the first half of 2024, the brand entered 30 countries, including Sweden, the Netherlands, the United Arab Emirates, Saudi Arabia, and Mexico. Overseas deliveries of the ZEEKR 001 and ZEEKR X have commenced.

To date, Geely has deepened its presence in various regions, including the Middle East, Asia-Pacific, Africa, Latin America, and Europe, launching 12 products in 30 countries overseas in the first half. Furthermore, Geely has established 653 sales and service outlets in 76 countries.

Meanwhile, Geely's investment in Proton Holdings Berhad has contributed to its stable development in the ASEAN market. In the first half of 2024, Proton sold 78,000 vehicles, generating a net profit of 126 million yuan. Renault Samsung Motors sold 42,000 vehicles in the first half, with a net profit of 85 million yuan. With stable investment returns in Korea, Europe, and the Americas, Renault Samsung Motors received dividends of 180 million yuan and 150 million yuan in 2023 and the first half of 2024, respectively.

Furthermore, Geely Automobile is also promoting the export of its technology.

In May this year, HORSE Powertrain, jointly funded by Geely Holding, Geely Automobile, and Renault Group, was officially established. Li Donghui emphasized that HORSE aims to become a global leader in the powertrain sector from its inception. Currently, HORSE operates 17 factories and five R&D centers worldwide, with an annual production capacity of 5 million powertrain units, covering all types of powertrain solutions and serving nine major customers, including Geely Automobile, Renault Group, Volvo Cars, Proton, Nissan, and Mitsubishi Motors, reaching consumers in 130 countries.

Conclusion

In the first half, Geely Automobile made comprehensive moves in various areas, including new energy, the premium market, and overseas expansion. With an annual target of 2 million vehicles, Geely achieved a 47.8% completion rate in the first half, leading other automakers in progress.

Regarding this exceptional mid-year performance, An Shiyue stated at the earnings conference that these achievements prove that Geely has reversed its relatively sluggish situation over the past few years and is steadily realizing its strategic plan from years ago, which he described as “the dawn of renewed glory.”