Geely Automobile Holdings Ltd (HK.0175) (Geely Auto), released its 2024 H1 results revealing revenues of 107.3 billion RMB, up 46.6% YoY with net profit attributable to shareholders of 10.6 billion RMB, up 574.7% YoY. Profit attributable to shareholders after deducting non-recurring items reached 3.37 billion RMB, a year-on-year increase of 114%. Net cash increased by 25.4% to 35.7 billion RMB. Thanks to increased scale and product optimization, the company total gross profit increased to 16.2 billion RMB, achieving a gross profit margin of 15.1% which has remained stable and rising into H2 2024.
In the first half of 2024, Geely Auto solidified its commitment to becoming a leading intelligent and electric brand. The company’s strategic focus on producing smart, premium vehicles for a wide range of consumers paid off, resulting in a robust 41% year-over-year increase in sales to 956,000 units.
Electrified and new energy vehicles (NEVs) accounted for a substantial portion of this growth, reaching 320,000 units – a remarkable 117% increase compared to the same period last year. This surge reflects the rising demand for electric vehicles and Geely’s successful market positioning. As a result, the share of electrified vehicle sales within Geely’s total sales portfolio expanded from 21.8% in 2023 to 33.5% in the first half of 2024, demonstrating significant progress in the company’s electrification journey.
Geely Auto electrified transformation
Geely Auto’s high-value NEV lineup, comprised of the L6, L7, and E8 models, offers a comprehensive ecosystem of advanced hybrid and pure electric sedans and SUVs, catering to a wide range of consumer preferences. In the first half of 2024 sales of the electrified models surged by an impressive 742% year-over-year, reaching 81,000 units. The lineup leverages Geely’s advanced technology ecosystem, including its cutting-edge Short Blade LFP battery, GEA Global Intelligent New Energy Vehicle Architecture, and an integrated intelligent electric drive unit. This powerful combination has enabled Geely to produce electric vehicles with exceptional range, efficiency, and performance. In 2024 Sept, E5, the latest addition to Geely’s high-end electrification lineup, will make its global debut on Electric Vehicles Expo at Automechanika (EVA) held in Frankfurt, Germany.
Increased investment in intelligent electrification
In the first half of 2024, Geely Auto continued to prioritize investment in intelligent electrification research and development. The company increased its R&D spending by 17.9% to 7 billion RMB, demonstrating its commitment to technological advancement. This investment has fueled the development of Geely’s intelligent technology ecosystem and accelerated the implementation of its “Smart Geely 2025” strategy.
Advances have also been seen in smart cockpits in H1 2024. On May 30th, Geely Auto released its “Flyme Auto” smart cockpit system jointly developed by Meizu and Geely. Geely Auto has also begun to apply improved AI capabilities in its smart vehicles backed by the Geely Wise Star Cloud Connected Central Computing System. Geely’s latest smart cockpit technologies have been supported by China’s first self-developed 7nm dedicated intelligent cockpit chip used in many of the company’s models.
Beyond its achievements in intelligent vehicle technologies, Geely has made significant strides in enhancing safety, durability, and efficiency through the development of high-value technologies. Key innovations include the latest Short Blade LFP battery, integrated intelligent electric drive unit, and GEA Global Intelligent New Energy Vehicle Architecture.
Geely’s commitment to applying these advanced technologies is evident in its focus on new energy safety and the improvement of EIC (Electric Integrated Component) standards. The company’s Short Blade LFP battery, for instance, sets a new benchmark for “Blade” type batteries in terms of safety, longevity, and high-speed charging capabilities.
Overseas sales
Geely Auto’s aggressive global expansion strategy yielded impressive results in the first half of 2024. Export sales surged by 67% year-over-year to reach 197,428 units.
The brand’s presence in key markets, including the Middle East, Asia Pacific, Africa, Latin America, and Eastern Europe, has been significantly strengthened through the launch of 12 products in 30 countries during this period. As of June 2024, Geely Auto boasted a robust network of over 650 sales and service outlets in 76 countries and regions outside of China, positioning it for continued international growth.
In 2024 May, Geely and Renault Group officially created HORSE Powertrain Limited, the commitment of which is to lead the global market for hybrid and combustion powertrain components and systems.
Geely Auto’s joint venture partnership with Renault Korea has also begun to bear fruit with cumulative sales reaching 42,000 units. Dividends attributed to the partnership have reached 180 million RMB and 150 million RMB for the first half of 2023 and 2024 respectively as a result of the joint venture’s performance in Korean, European, and American markets.
Sustainability
As of June 2024, Geely Auto has achieved a 14% reduction in carbon emissions and was selected for a number of ESG honors including eighth on the “China Top 100 listed ESG Pioneer Companies,” first among Chinese automakers for two consecutive years, and the only company in China’s automotive industry to receive a “five-star” excellence rating. The company has continued to maintain the honor of being first among Chinese automakers on the S&P Global Sustainability Assessment, and the only Chinese automaker on the Hang Seng Sustainability Enterprise Index.
2024 second half outlook
Geely Auto’s intelligent and electric transformation has yielded remarkable results in the first half of 2024. The company achieved a historic milestone by surpassing 100 billion RMB in revenue, while maintaining steady sales growth and improved profitability.
Looking ahead, Geely has ambitious targets, including increasing annual sales to 2 million units, boosting electrified new energy vehicle sales by 70%, and expanding export sales by 45%. To achieve these goals, the company will continue to focus on its intelligent and electric transformation, leveraging its robust technological foundations and strengthening its technology ecosystem to deliver enhanced intelligent driving and mobility experiences to users worldwide.
SOURCE: Geely
