Geely Automobile ((HK:0175)) has held its Q4 earnings call. Read on for the main highlights of the call.
Geely Automobile’s recent earnings call paints a picture of optimism and growth. The company reported significant increases in sales volume, revenue, and new energy vehicle (NEV) sales, reflecting a positive outlook. Geely’s strategic shift towards NEVs is beginning to show profitability, with a strong emphasis on research and development (R&D) and technological advancements. Despite facing challenges such as intense market competition and the need for further product optimization, Geely remains confident in its growth and expansion plans.
Record-Breaking Sales Volume and Revenue Growth
In 2024, Geely Automobile achieved a remarkable sales volume of 2.177 million units, marking a 32% growth. The company’s total revenue exceeded RMB 240.2 billion, representing a 34% increase from the previous year. This growth underscores Geely’s strong market presence and effective sales strategies.
Significant Growth in New Energy Vehicle (NEV) Sales
Geely’s NEV sales reached 888,000 units, nearly doubling from the previous year with a 92% increase. The NEV penetration rate hit 58.6% in December 2024, highlighting the company’s successful transition towards sustainable automotive solutions.
Strong Export Growth
Geely’s exports soared to 415,000 vehicles, growing by 57%. Export sales accounted for nearly 20% of total sales, showcasing Geely’s expanding international footprint and competitive edge in global markets.
Strategic Transformation and Profitability
The strategic transformation towards NEVs led to profitability in Q4 2024. Net profit attributable to equity holders, excluding extraordinary items, reached RMB 8.52 billion, up 52% year-on-year, indicating successful financial management and strategic execution.
R&D Investment and Technological Advancements
Geely invested RMB 15.9 billion in R&D, focusing on intelligent strategies for NEVs. This investment has resulted in an increase in the average unit price to RMB 107,000 due to product structure optimization, emphasizing Geely’s commitment to innovation.
Challenges in Competitive Domestic and International Markets
Despite successes, Geely faces fierce market competition, with expectations of narrowed sales volume in overseas markets due to global macroeconomic conditions. Competitor pricing adjustments and claims of high-quality intelligent driving capabilities pose additional challenges.
Need for Continued Optimization in Product Matrix
To maintain competitiveness and market position, Geely acknowledges the need to optimize its product matrix in new energy vehicles, ensuring continued success in a rapidly evolving market.
Promising Future Outlook
Looking ahead, Geely aims for a sales target of 2.71 million units in 2025, including 1.5 million NEV sales. The company plans to launch 10 new NEV products, demonstrating its commitment to innovation and market leadership. Geely also aims to reduce R&D expense ratios and sales and administrative fees by 2026.
In summary, Geely Automobile’s earnings call reflects a positive sentiment with strong growth in sales and revenue, driven by strategic transformations and technological advancements. While challenges remain, the company’s forward-looking guidance and ambitious targets indicate a promising future for Geely in the automotive industry.