On March 23, Geely Automobile (00175. HK) announced its financial results for the year ended 31 December 2021.
In 2021, Geely achieved operating income of RMB101.6 billion, an increase of 10.3% year-on-year; profit attributable to shareholders after deducting share payments of RMB6.06 billion, an increase of 9.4% year-on-year; profit attributable to shareholders of RMB4.85 billion, a decrease of 12.4% year-on-year.
Financial data Source: Company financial report
The profit structure is diversified
Geely said the company's financial performance last year was lower than management expectations, mainly due to the shortage of global chip supply during the year. The growth of revenue is mainly related to the improvement of bicycle revenue and the optimization of product structure.
In 2021, Geely Automobile's overall average bicycle revenue was 87,672 yuan, an increase of 9.0% year-on-year. At the same time, under the guidance of the intelligent Geely 2025 strategy, Geely Automobile has fully opened the era of 4.0 architecture car manufacturing, the modular architecture model has been increased to 70%, the product structure has been continuously optimized, and the scale effect of module architecture has been formed.
Geely pointed out that the technology output has contributed to the diversification of the profit structure: in 2021, other revenues such as technical services and licensing profits continued to grow, an increase of 245.3% year-on-year, and licensing revenue has become a new profit growth point for the company; the net profit of the joint venture company increased by 42%, of which the net profit of Lynk & Co increased by 37%, and the net profit of Jizhi Financial increased by 45%.
It can be seen that technological output is an important and sustainable direction for future profit sources. From product output to technology output, it is the embodiment of geely automobile's technical capabilities and business structure diversification, which will support the company's long-term sustainable development.
The sales target for 2022 is 1.65 million units
At present, Geely Automobile has a number of brands such as CMA high-end series "China Star", Lynk & Co, Extreme Krypton, Geometry and so on. In 2021, Geely Automobile's total annual sales reached 1.328 million units, and the overall sales performance was excellent.
The total sales volume of the "China Star" series exceeded 200,000 vehicles last year, of which the Xingyue L sold more than 10,000 yuan per month after its listing, with an average price of 160,000 yuan; Lynk & Co ushered in the fifth anniversary of the brand last year, with cumulative sales exceeding 650,000 vehicles and an average weighted transaction price of 165,000 yuan.
In terms of geely new energy vehicles, sales in 2021 increased by about 47% year-on-year, and sales of new energy and electrification exceeded 100,000 units, of which geometric vehicles increased by 145.3%, and the market share of the A-class pure electricity market reached 7.43%, ranking third. In the more than two years since its launch, Geometry Auto has served more than 200,000 users and sold 55,320 vehicles in 2021.
Since the launch of its first model, The Krypton 001, the new pure electric brand, Has delivered 12,453 new cars in four months, with an average order price of 335,000 yuan.
Geely Automobile has set its sales target for 1.65 million units in 2022, comprehensively promoted the implementation of the smart Geely 2025 strategy, increased investment in research and development of new energy products, and actively laid out in the field of intelligent electric vehicles.
Geely expects that the overall sales of Geometric Automobile will reach 160,000 units in 2022, and Extreme Kr is expected to hit the sales target of 70,000 vehicles, and will launch 6 new products in the next three years, and by 2025, the annual sales volume of Extreme Kr will reach 650,000 units, ranking among the top three in the world in the high-end electric vehicle market.
Enter the power exchange, "dead bump" research and development
In order to achieve the strategic goal of Smart Geely 2025, Geely will continue to invest in self-developed technology to quickly promote the development of its comprehensive intelligent and electrified layout.
In the past five years, Geely has invested a total of 25.6 billion yuan in research and development, and the proportion of R&D investment in revenue has increased year by year. In 2021, Geely invested a total of 5.5 billion yuan in research and development expenses, an increase of 16.1% year-on-year. In 2022, Geely will continue to increase its R&D investment in new energy products.
It is reported that Geely's software research and development focuses on intelligent driving and intelligent cockpit applications. In terms of autonomous driving, Extreme Krypton and Mobileye will deepen cooperation and will launch an all-electric vehicle with L4 autonomous driving capabilities in 2024; the "new generation of smart cockpit" technology based on 7Nm chips will be installed on the new smart SUV and will be displayed within the year.
Extreme Kr and Mobileye deepen cooperation Source: Geely Automobile
In addition, Geely also officially entered the field of power exchange, based on the exclusive power exchange architecture, launched a new "power exchange travel brand" Ruilan Automobile. In 2022, Ruilan Automobile plans to launch a new flagship replacement SUV model to fully open up the private user market.