On March 23, Geely Automobile (0175. HK) released its 2021 financial report. According to the financial report, the annual revenue of listed companies was 101.6 billion yuan, an increase of 10.3% year-on-year; the profit attributable to shareholders after deducting share payment was 6.06 billion yuan, an increase of 9.4% year-on-year; the profit attributable to shareholders was 4.85 billion yuan; and the net profit was 4.35 billion yuan.
From the perspective of revenue, Geely Automobile's revenue is still mainly based on automobile sales and related services, with a total sales volume of 1.328 million units in the whole year, of which the sales volume of new energy products increased by about 47% year-on-year. Geely pointed out that in 2022, it will continue to promote the implementation of the "Smart Geely 2025" strategy and is full of confidence in the goal of delivering 1.65 million vehicles for the whole year.
Benefiting from the output of high-end R&D technology, the company has diversified its profit structure. In addition to automobile sales revenue, sales of auto parts, technical services and licensing services and other revenues have been increased, of which technical services and licensing increased by 245.3% year-on-year, licensing revenue has become a new profit growth point for the company.
In terms of expenditure, R&D investment continued to grow, with Geely's R&D investment totaling 5.5 billion yuan in 2021, an increase of 16.1% year-on-year, and the total R&D investment in the past five years totaled 25.6 billion.
Electric energy saving at the same time, Geely's diversified layout to accelerate the transformation of science and technology
As can be seen in the financial report revenue, Geely's technical services and licensing profits are gradually growing, with a total revenue of 4.526 billion yuan, an increase of 245.3% year-on-year, of which the licensing revenue is 1.275 billion, which has become a new profit growth point for the company. At the same time, the net profit of the joint venture (Lynk & Co and G&G Financial) increased by 42%, of which the net profit of Lynk & Co increased by 37% and the net profit of J&G Financial increased by 45%.
This diversified profit structure ensures the high-quality development of Geely Automobile, which is reflected in sales: in 2021, Geely Automobile's total annual sales volume was 1.328 million units, winning the annual sales championship of Chinese brand passenger cars for five consecutive years. The "China Star" series launched to meet the needs of users' consumption upgrades, with annual sales of more than 200,000 vehicles, of which the monthly sales of Xingyue L exceeded 10,000 yuan, with an average price of 160,000 yuan; Lynk & Co also ushered in the fifth anniversary of the brand, with annual sales of more than 220,000 vehicles and cumulative sales of more than 660,000 vehicles; geometric cars sold more than 10,000 yuan per month, achieving "geometric" growth.
With the maturity and development of the new energy vehicle market, Geely has performed prominently in the new energy market. Relying on the advantages of traditional car companies, Geely adopts the strategy of energy diversification layout, accelerates the transformation of electrification, and adheres to the simultaneous development of electric and energy-saving vehicles. In 2021, Geely Automobile's new energy product sales increased by about 47% year-on-year, and in addition to pure electric and PHEV models, a number of HEV models were launched. In the more than 2 years since its listing, Geometry Auto has served more than 200,000 users. In 2021, the sales volume of geometric cars reached 55,320 units, an increase of 145.3% year-on-year, and the A-class market share was 7.43%, and the market potential should not be underestimated.
In terms of new energy, Geely's krypton intelligent technology launched last year has been the focus of the industry since its birth, and from the financial report data, the performance of extreme krypton has also lived up to expectations. According to the financial report, since the delivery of the Krypton 001 began in October 2021, a total of 12,453 vehicles have been delivered in four months, with an average order unit price of 335,000 yuan. In November, Geely Automobile's move to raise the krypton stock ratio to 58% also showed its confidence in extreme krypton, and it is said that in the fourth quarter of this year, MPV models will be launched and delivered. In the next three years, Extreme Kr will successively launch six new models, and by 2025, The annual sales target of Extreme Kr is 650,000 units, ranking among the top three in the world in the high-end electric vehicle market.
It can be seen that the technology output has become the source of Geely's future profits, from product output to technology output, with the optimization of product structure and the improvement of profitability, geely automobile (including Lynk & Co) overall average bicycle revenue of 87672 yuan, an increase of 9.0% year-on-year, the brand premium ability is highlighted.
R&D investment continues to grow, adhere to the construction of a full-stack self-development system
Geely mentioned in the "Smart Geely 2025" strategy released in 2021 that it is necessary to continue to promote Geely's accelerated transformation to the era of the new four modernizations, build a full-stack self-developed ecosystem in the core technologies such as new energy, automatic driving, intelligent networking, and intelligent cockpit, and build Geely into a technology-led global automotive enterprise.
According to the financial report, 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. "Self-research" strength has become the core competitiveness of new energy vehicle companies, at present, Geely has been fully developed in the three fields of software self-research, hardware self-research and technical data self-research.
Among them, software self-development is particularly important, and Geely is accelerating the realization of a new generation of intelligent driving and intelligent cockpit applications. Geely said that it will display the "new generation of smart cockpit" technology based on 7Nm chips this year, and take the lead in installing it on the new smart SUV. In terms of autonomous driving, Extreme Kr and Mobileye have deepened their cooperation and will launch the world's first all-electric vehicle with L4 autonomous driving capability in 2024.
In terms of hardware, in October last year, geely released the "Smart Geely 2025" strategy at the same time, but also launched the "Thor Power" brand and Thor Wisdom Hi · X Hybrid System, capable of achieving 43.32% of the world's leading thermal efficiency, 40% fuel saving rate and full power domain OTA, has achieved industry-leading advantages in power, fuel consumption and intelligence. Currently Ray's Mind Ishi · The X hybrid system has been installed on Geely's "China Star" series of products, and in the future, there will be more than 20 models equipped with Thermos Hybrid, achieving the first sales volume in the mainstream market segment of the hybrid.
In addition, Geely Automobile also plans to actively promote the landing of new energy technologies such as pure electricity, super mixing, alcohol-electric hybridization, and power exchange, and exert efforts on the large-mileage PHEV, pure electricity, and power exchange multiple tracks, leading the technological transformation of Chinese brand vehicles, and creating new advantages in online and offline integration.
Geely Holding Group said that in 2022, it will continue to increase investment in research and development in new energy products, and continue to empower Geely Automobile through the continuous release of the value of new energy technology, the Internet of Vehicles, and the self-ecosystem, and bring users products and experiences beyond expectations.
Text/Liu Chang Proofreader Guo Li