Original title: Geely Automobile’s first half net profit was 2.41 billion yuan, achieving modular vehicle manufacturing and will gradually phase out low-priced products
China Times (www.chinatimes.net.cn) reporter Yu Jianping reports from Beijing
On August 18, Geely Automobile Holdings Co., Ltd. (hereinafter referred to as “Geely Automobile”) (HK.0175) released the first half of 2021 financial report. In the first half of 2021, Geely Automobile’s revenue reached 45 billion yuan, an increase of 22% year-on-year; the profit attributable to shareholders excluding share-based payments was 3.02 billion yuan, an increase of 31% year-on-year, the profit attributable to shareholders was 2.38 billion yuan, and the net profit was 2.41 billion yuan. Renminbi.
Regarding the performance of Geely Automobile in the first half of the year, Gui Shengyue, Chief Executive Officer and Executive Director of Geely Automobile Holding Co., Ltd., said: “The semi-annual report generally meets basic expectations.”
Although it can be seen from the half-year performance that Geely Automobile has performed well as a whole, Geely Automobile still faces challenges under multiple pressures such as chip shortages and rising raw materials.
Diversified profit structure
The semi-annual report shows that in terms of sales volume, from January to June 2021, Geely Automobile’s total sales volume is 630,237, an increase of approximately 19% year-on-year. Among them, the global new high-end brand Lynk & Co. has sold 107,873 vehicles from January to June, an increase of 96.98% year-on-year, demonstrating strong brand competitiveness.
In the first half of 2021, Geely (including Lynk & Co) had an average bicycle revenue of 84,184 yuan, a year-on-year increase of 10%, and the brand’s premium ability continued to increase. It can be seen that because of the growth of Lynk & Co, the overall profit margin of Geely Auto has been driven.
It can be seen from the semi-annual report that Geely Auto’s profit structure is diversified. In the first half of the year, the net profit of the joint venture (Lynk & Co and Jizhi Financial) increased by 62%, of which Lynk&Co’s net profit increased by 144%, and Jizhi Financial’s net profit increased by 41%. %. At the same time, high-end R&D has helped technology output become a new highlight of profitability, and the proportion of technical services and authorized profits has increased to 29%.
At present, Geely Auto has ample cash flow. As of June 30, 2021, Geely Auto’s total cash level reached 19.92 billion yuan. Bills receivable was 16.54 billion yuan, and operating cash flow increased from negative 3.24 billion yuan in the first half of 2020 to positive 4.12 billion in the first half of 2021.
The semi-annual report shows that 2021 will be the product year of Geely Automobile, and it will fully enter the “4.0 era of car-making with a comprehensive architecture system”, and product competitiveness will be further enhanced. On July 20, Geely Automobile officially released the “Geely Brand CMA High-end Series”-named “China Star”. The data shows that the cumulative sales of “China Star” models from January to July, including the three star products of Xingrui, Xingyue S, and Xingyue L, were 95,465. Xingrui continued to maintain a monthly sales trend of over 10,000, with a cumulative sales of nearly 100,000 units in the nine months of listing; Xingyue L’s orders exceeded 30,000 units in less than one month after its listing.
2021 is the fifth year of Lynk & Co’s development, and its cumulative sales in China exceeded 550,000 vehicles, achieving a new breakthrough in the development of China’s high-end automobile brands. The data shows that the cumulative total sales of Lynk & Co 01 exceeded 200,000 vehicles.
In the field of new energy, in the first half of 2021, Geely Automobile’s sales of pure electric vehicles and plug-in hybrid models increased by 189% year-on-year. The 2021 deliverable orders for the first model of Jikrypton Motor, the Jikrypton 001, have been sold out.
In terms of exports, Geely’s cumulative exports from January to June reached 53,422 units, an increase of about 173% year-on-year. Proton Automobile sold 57,854 vehicles in the first half of the year, with a market share of 23.5%.
Target sales of 3.65 million vehicles in 2025
According to Gan Jiayue, CEO of Geely Automobile Group, at the beginning of this year, Geely established two blue action plans centering on the general directions of new energy, intelligence, and networking.
The first blue action plan is to focus on intelligent energy-saving and small-displacement new energy vehicles, including hybrid power and extended-range plug-in hybrid power. Geely Automobile plans to launch a new power brand within the year, focusing on building Geely GHS2.0 intelligent hybrid system, achieving a world-leading thermal efficiency of 43.32%, a fuel saving rate of 40%, and a full power range OTA, achieving industry-leading power, fuel consumption, and intelligence. Advantage. The GHS2.0 intelligent hybrid system will be first installed on the “China Star”, and will be equipped with more than 10 new Geely models within 3 years. It will also be the first to realize “China Dynamics“Supply to the world. The second blue action plan is to focus on high-end intelligent pure electric vehicles. The brand-new ultra-krypton intelligent technology company is actively participating in the competition in the intelligent pure electric vehicle market.
“These two plans not only retain Geely’s advantages in the field of smart energy-saving and new energy vehicles, but also open up a new situation for high-end pure electric smart vehicles, and promote Geely’s comprehensive new energy strategic layout with’two-wheel drive’.” Gan Jiayue Express.
Since the second half of last year, the shortage of chips in the automotive industry has brought tremendous pressure to the entire automotive industry, and it has also brought challenges to the sales and operation of Geely Automobile. According to Gan Jiayue, since the end of August last year, Geely began to set up a mass goods department from its supply chain procurement company, and began to reserve some chips in September last year. At the same time, Geely has also made preparations for localized alternatives to chips. “The uncertainty caused by the shortage of chips does exist, and the impact of this uncertainty is indeed difficult to assess. Of course, we are confident that relying on Geely’s global resource coordination capabilities, Geely’s impact in this regard will be affected. smaller.”
For the next five-year development plan, Geely Automobile’s goal is: by 2025, its market share will rank first among Chinese brands, with sales of 3.65 million units (including extremely krypton vehicles), of which smart electric vehicles account for more than 30%. Krypton will rank among the top three in the global market for high-end electric vehicles by 2025, with sales reaching 650,000 units. It can be seen that Geely Automobile has high expectations for Ultra Krypton, as Gui Shengyue said: “As the pioneer of the entire Geely Auto electrification, Geely Automobile will determine its leading position in the future high-end electric vehicle market as soon as possible. “
According to An Conghui, chairman of Geely Automobile Group, CEO of Geely Intelligent Technology, and executive director of Geely Automobile Holdings Co., Ltd., Geely adopts an independent operation model and an innovative business model to focus on the ecology of smart electric travel. On April 15 this year, the Krypton brand was officially released, and ZEEKR 001 also opened the reservation simultaneously. The number of locked orders for ZEEKR 001 on the first day exceeded 5,000, with an average price of more than 335,000 yuan. On June 15, ZEEKR 001’s deliverable orders in 2020 were all sold out. According to An Conghui, there will be 6 models within 3 years of the launch of the production and the launch of Krypton. And the first safari coupe-type Jikrypton 001 under Jikr Auto will be delivered in October.
“In the second half of the year, we will successively launch the fourth-generation Emgrand under the BMA architecture and Lynk&Co 09 under the SPA architecture. By 2024, all Geely Auto’s main products will be transferred to the CMA/BMA/SPA architecture, and low prices will be phased out. And old products, to achieve the high quality, high value and high efficiency of modular car manufacturing, to create star products and explosive products.” Gan Jiayue said.
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