Authored by Qiaofu

People | Cars | The Automotive Universe

Co-witnessing the Ascendancy of China's Automotive Sector

Geely has officially declared in a statement that Li Shufu has stepped down from his roles as Chairman of the Board and Executive Director at Geely Automobile Holdings Limited.

This announcement has sparked considerable interest.

Li Shufu's departure prompts a significant inquiry: Is Li Shufu truly relinquishing his leadership? It also fuels a major anticipation: What's the future trajectory of Geely's 'acquisition strategy'?

Li Shufu's resignation from the listed entity's leadership does not signify his retirement from the automotive industry.

So, through what channels will he continue to shape Geely's destiny? To answer this, we must delve into Geely's equity framework, particularly discerning between Zhejiang Geely Holding Group and Zhejiang Automobile Holdings.

Geely's equity setup can be dissected into three tiers.

As depicted in the diagram:

Special Note: 1. The diagram illustrates only select projects; 2. Owing to the principle of penetration (tracing ultimate ownership), there might be variances in holding entities and proportions.

At the apex are Li Shufu, his son Li Xingxing, and their controlled entity, Ningbo Yima. Collectively, these three entities own 100% of Zhejiang Geely Holding Group.

Serving as a platform, Zhejiang Geely Holding Group has embarked on a series of investments, encompassing Volvo, Proton, Lotus, Mercedes-Benz, and Zhejiang Automobile Holdings, among others.

Among these, Zhejiang Automobile Holdings is listed in Hong Kong, and numerous Geely brands fall under this listed entity. In 2025, Geely Holding's consolidated revenue reached RMB 631.555 billion, with Geely Automobile Holdings contributing RMB 345.232 billion, accounting for over 54%. This underscores Geely Automobile Holdings' undeniable significance.

The position Li Shufu vacated was the Chairman of the Board at the listed entity level. His roles at the investment platform level, namely within Geely Holding Group, remain intact.

This implies that, as long as Li Shufu desires, he can still wield influence across the Geely empire via this platform.

Equity acquisitions have been a hallmark of Geely's growth trajectory.

According to publicly disclosed information by Geely Holding Group, at the outset of 2025, the book value of its investments soared to RMB 55.426 billion. Throughout the year, it injected an additional RMB 11.409 billion into investments and realized investment income of RMB 1.553 billion. By the end of 2025, the book value of its long-term investments had escalated to RMB 69.642 billion. Based on shareholding ratios, its investment targets can be categorized into joint ventures and associates. There are 24 joint ventures, with a book value of RMB 39.548 billion at the year's start and investment income of RMB 2.511 billion during the year, with Horse Powertrain Limited alone contributing RMB 1.912 billion in investment income. There are 48 associates, which incurred an investment loss of RMB 957 million during the year.

Why might Li Shufu's resignation as Chairman of the Board of the listed entity not necessarily impede Geely's acquisition spree?

This is because while some of Geely's acquisition activities are conducted through the listed entity, a substantial portion is executed via the Geely Holding Group platform.

Hence, even after relinquishing the Chairman of the Board role, Li Shufu can still orchestrate mergers and acquisitions through the Geely Holding Group platform.

Li Shufu's exit from the listed entity is ostensibly aimed at 'further refining the professional manager authorization and operation mechanism and optimizing the company's corporate governance structure.'

This rationale is undoubtedly plausible, but are there underlying motives?

Currently, the automotive industry is undergoing a transition from internal combustion engines to electric vehicles, with traditional automakers and newcomers clashing head-on. For Chinese automakers, the emphasis is on seizing opportunities and achieving breakthroughs—a 'transformative era unparalleled in a century.'

As for Geely itself, its proposed 'One Geely' strategy undoubtedly hinges on the stability of its core leadership to realize its ambitions.

Therefore, Li Shufu's resignation still leaves many perplexed.