In 2021, Geely Automobile's revenue is 101.6 billion yuan, and its net profit is 4.35 billion yuan, and it only earns more than 3,000 yuan per vehicle on average!
On March 23, Geely Automobile released its 2021 annual report. During the reporting period, the company's revenue increased significantly, achieving revenue of 101.6 billion yuan, an increase of 10.3% year-on-year, and net profit of 4.35 billion yuan, down 22% year-on-year.
Geely Automobile is an intelligent electric mobility and energy service technology company, with business scope covering passenger cars, commercial vehicles, travel services, digital technology, financial services, education and so on. Headquartered in Hangzhou, the Group owns Geely, Lynk & Co, Extreme Krypton, Volvo, PoleStar, Remote New Energy Commercial Vehicle, Cao Cao Chuxing and other brands.
In 2021, Geely Automobile's total revenue increased significantly, and the sales growth and bicycle revenue of the automotive segment made a major contribution. According to the data, the overall average bicycle revenue of Geely Automobile (including Lynk & Co) was 87672 yuan, an increase of 9.0% year-on-year; Geely Automobile's annual sales in 2021 were 1.328 million units, calculated according to the annual net profit of 4.35 billion yuan, with an average of only 3275 yuan per vehicle.
Revenue growth, sales growth, why does Geely have a decline in net profit?
According to the annual report, due to the shortage of global chip supply during the year, the company's costs and expenses have increased to varying degrees, resulting in a decline in Geely's net profit. But at the same time, the company's product mix has improved, resulting in an 8% increase in the average ex-factory selling price compared with the same period last year. In addition, sales of "Lynk & Co" brand cars sold by the joint venture also contributed to a 9% increase in the overall average selling price. The above factors allowed Geely to "return the blood" in time, and the gross profit margin in 2021 was 17.14%, an increase of 1-2 percentage points over the previous year's 16%.
It is worth mentioning that in 2021, Geely Automobile's R&D investment totaled 5.5 billion yuan, an increase of 16.1% year-on-year; in the past five years, the total R&D investment totaled 25.6 billion yuan. Geely CEO said at the earnings conference that in 2021, Geely Automobile's R&D investment is mainly used for the growth of investment in Extreme Kr Automobile, and in 2022, it will continue to increase investment in research and development of new energy products.
Geely Automobile said that there is no sign of abating competition, rising raw material prices and global chip supply shortages, which may continue to put pressure on the company's sales performance and profitability in 2022. At the same time, Extreme Kr Holdings is still in the early stage of development, with high operating costs and limited returns. In the long run, the development demand will shift from traditional cars to new energy vehicles.
As of March 23, 2022, hong Kong stock Geely Automobile closed at HK$11.96/share, down 65.51% from last year's highest point of HK$36.08/share, with a market capitalization of HK$119.8 billion.
(Author 丨Shijie Zhou Yihang Editor 丨Liao Ying)