At noon on March 23, Geely Automobile (00175. HK) released its 2021 financial report. In 2021, Geely Automobile achieved operating income of 101.611 billion yuan, an increase of 10.3% year-on-year; net profit of 4.353 billion yuan, down 21.9% year-on-year; the company's cash flow was 28 billion yuan, the highest level in history; and diluted profit per share decreased by 15% year-on-year to 0.48 yuan. The Company proposes to pay a dividend of HK$0.21 per share, representing a dividend ratio of 35.3%, an increase of 5.8 percentage points over 2020.
Geely Automobile according to IC photo
Affected by this news, Geely Automobile rose 4% in the afternoon, closing at HK$11.96 per share, up 1.53%.
Geely disclosed that the performance highlights include revenue diversification and profit diversification, licensing services and technical services revenue increased by 245.3%, and the proportion of profit continued to increase.
Specifically, Geely Automobile's operating income from automobile sales and related services was 87.697 billion yuan, an increase of 4.6% year-on-year; operating income from auto parts sales was 8.798 billion yuan, an increase of 25.9% year-on-year; revenue from research and development and related technical support services was 3.251 billion yuan, an increase of 336.4% year-on-year; operating income from intellectual property licensing was 1.275 billion yuan, an increase of 125.4% year-on-year; and operating income from battery packs and related parts was 589 million yuan, without this income in 2020.
In terms of automobile sales, in 2021, Geely Automobile's total annual sales reached 1.328 million units, up 1% year-on-year; domestic sales in China reached 1.213 million units, down 3% year-on-year; and export sales of 115,000 units, up 58% year-on-year.
In the total sales volume, the cumulative sales of the Lynk & Co brand, which is 50% owned by Geely Automobile, exceeded 650,000 units, achieved normalized exports to Europe, achieved terminal delivery in the Netherlands, Germany, Belgium and other markets, landed in Kuwait as the first stop of the Asia-Pacific strategy, and began to deliver in four countries in the Middle East.
Geely Automobile's Board of Directors has set a 2022 auto sales target of 1.65 million units, an increase of approximately 24% over total sales in 2021.
In terms of new energy and electrification products, in 2021, Geely's sales of electrified vehicles exceeded 100,000, of which a geometric increase of 145.3%, and the market share in the A-class pure electricity market reached 7.43%.
Since the start of deliveries in October 2021, Geely's electric brand, Extreme Krypton, has delivered a total of 12,453 Extreme Kr 001 models in four months. By 2025, the annual sales target of Extreme Kr is 650,000 units. According to Geely's plan, in November this year, Geely Automobile will increase the ratio of krypton to 58%. In the next three years, Extreme Kr will launch 6 new models. The Krypton MPV model will be available for delivery in the fourth quarter of 2022.
In 2021, the average selling price of Geely Automobile increased, and the overall gross profit margin rose to 17.1%. Benefiting from the optimization of the product portfolio, the average selling price of Geely Automobile in 2021 increased by 8% compared with the same period last year, and the overall average bicycle revenue including Lynk & Co was 87,672 yuan, an increase of 9.0% year-on-year. In 2021, the average weighted transaction price of Lynk & Co products reached 165,000 yuan, and the average order unit price of Extreme Kr 001 reached 335,000 yuan.
However, due to the shortage of chips, rising raw material prices, and rising research and development expenditure, Geely Automobile's operating profit margin fell to 5.4%.
In 2021, Geely Automobile's R&D investment totaled 5.5 billion yuan, an increase of 16.1% year-on-year, and the total R&D investment in the past five years totaled 25.6 billion yuan. Geely said that because most of the ongoing R&D projects are for new technologies that are not yet used in existing products, most of the related expenses have been capitalized and amortized only after products using such technologies are placed on the market. In 2021, the cost of capitalized product development increased by 4.3 billion yuan, mainly related to model development, and the rest was used for the development of powertrain and new energy vehicle technology.
In 2022, Geely will continue to increase investment in research and development in new energy products, and exert efforts on pure electricity, super electric hybrid, alcohol-electric hybrid, power exchange and other tracks, and will launch the world's first alcohol-electric hybrid car - the 4th generation Emgrand alcohol-electric hybrid car. Geely also entered the new business of power exchange through the power exchange travel brand Ruilan Automobile, and more than 8 models of Thor Hi · X-oil hybrid and super hybrid products are planned to be launched on the market.
Red Star News reporter Wu Danruo
Edited by Tao Yueyang
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