coincidental! On March 23, Ideal announced a price increase, and Geely Automobile announced that its performance had reached a historic high! It can be said that this is the competitiveness of Geely Automobile, as a traditional mainstream car company, in the first game of the car-making race between mainstream car companies represented by Geely and new forces.
Although in the past year, under the pressure of the epidemic, chip shortage, raw material price increase and intensified competition, the entire automotive industry is facing unprecedented huge challenges, and there are also new energy vehicles that are under cost pressure to announce price increases, but the so-called "real gold is not afraid of fire refining", the real strong, must be the one who breaks through the difficulties and breaks through in the adverse trend.
On March 23, Hangzhou, Geely Automobile Holdings Co., Ltd. held an online conference on the annual results of 2021, and Dai Qing, senior vice president and CFO of Geely Automobile Group, proved with performance that the most capable of resisting market risks is the mainstream car companies represented by Geely.
Data released by Dai Qing shows that in the past year, Geely Automobile has "increased production and harvested", and its China Star high-end series, Lynk & Co brand, new energy and overseas exports have achieved high growth, with a total sales volume of 1.328 million units, winning the chinese brand passenger car sales championship for five consecutive years. At the same time, it also improved profitability from multiple angles such as product structure optimization, technology output, and joint venture force, and cash flow also hit a record high.
This is in stark contrast to the new forces that can't bear the cost pressure and have raised prices to build cars. It also fully illustrates geely automobile, which represents mainstream car companies, its agile and rapid response and problem-solving ability in the face of the external environment.
Behind the non-price increase is the ability to solve problems
On the same day as Geely Automobile's 2021 performance conference, Ideal Auto announced that it would adjust the price of Ideal ONE from the current 338,000 yuan to 349,800 yuan.
The ideal car is only one of the "sentient beings" of the price increase of new energy vehicles, before that, Tesla announced price increases three times in a week, of which the highest price of Model Y has risen by 30,000 yuan. After Tesla, nearly 20 new energy companies such as BYD, Xiaopeng, Weima, Nezha Automobile, and Zero-run Cars have followed suit.
Behind the price increase of new energy vehicles is driven by many factors, first, the rise in raw materials is the main reason, and the increase is very large;
Ideal Auto CEO Li Xiang once released an interpretation of the price increase of new energy vehicles on his personal social platform, saying that "the increase in battery costs in the second quarter was very outrageous.
To make matters worse, new energy countries make up for the decline, so that income will be reduced. On the last day of 2021, the Ministry of Finance and other four departments jointly issued the "Notice on the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles in 2022" and the subsidy plan. The content shows that in 2022, the subsidy standard for new energy vehicles will be reduced by 30% on the basis of 2021, and new energy vehicles that are licensed after December 31 this year will no longer be given state subsidies. The increase in raw material prices + subsidies means that the cost of a new energy vehicle has increased by at least 10,000 yuan.
This has also made new energy vehicle companies, under pressure, began to increase prices. However, the price increase also means that the competitiveness is reduced, not all new energy vehicles will increase in price, in the new force car companies, Weilai Automobile did not announce a price increase. Similarly, so is Geely Motors.
How can we resist the increase in costs due to raw material costs and policy risks? Gan Jiayue, CEO of Geely Automobile Group, believes that the problem of manufacturing scale, the response to the supply chain end and the ability to control the procurement cost will be very different. The long-term accumulation of mainstream car companies' understanding of the technical depth of the car is also more agile to solve problems.
Also in the face of chip shortages, Geely Automobile and all car companies face the same problems. Gan Jiayue revealed that although the upstream of Geely Automobile was also greatly affected last year, due to the shortage of customized chip production capacity, the impact on the company's production capacity is greater, but the degree of impact is lower than the impact of the industry, the reason behind it is the creation of Geely's mature supply chain system.
Gan Jiayue revealed: Geely's supply chain system is a global and international. In fact, in the early stage, Geely has established a daily communication mechanism with more than 130 chip original factories, and has also reached strategic cooperation agreements with a number of core chip original factories, and some large chip original factories have achieved direct supply.
After the chip shortage, Geely has been making some adjustments and optimizations to the management of the supply chain system, and will further strengthen the strategic cooperation with the chip factory in the future, especially to optimize the cooperation mode of Tier1 and Tier2. In addition, Geely has also taken the initiative to take a series of risk prevention and control measures in the supply chain, which will focus on platform common parts, identify production capacity risks, lock in some core chips, and strengthen the localization of chips and the route of self-developed chips.
These measures are all in order to lay out the chip production capacity in the next 3 to 5 years and some new technical cooperation, through a variety of technical route solutions, to solve the problem of chip shortage in a multi-faceted and all-round way.
Rising bicycle prices are the determinants of a new high in net profit
In the face of rising raw material prices, it can also maintain competitiveness, which has a lot to do with Geely Automobile's product upwards and rising unit prices over the years.
In the past year, Geely has gradually increased its products by launching the China Star high-end series; the sales of new energy have increased rapidly, an increase of 177.3% year-on-year; and the release of the Thor Super Hybrid System. X thermal efficiency of 43.32%, fuel saving rate of more than 40%, the launch of the second generation of electrical and electronic architecture and Galaxy operating system, the establishment of the Krypton brand, the acceleration of the Lynk & Co Europe program, etc., achieved historic growth.
In the past year, the proportion of high-value products has increased, making the overall average bicycle price in 2021 increase by 9.0% year-on-year to 88,000 yuan. Judging from the distribution chart of the product market guidance price, this is mainly due to the fact that the proportion of Geely's products with a price of 100,000-150,000 and more than 150,000 increased by 30%.
GanJiayue revealed that in 2021, the sales growth rate of Lynk & Co will reach 25.7%. In fact, Lynk & Co achieved double growth in sales and net profit in 2021. Deliveries of 660,000 units were completed in four full years. Lynk & Co's "European Plan" and "Asia-Pacific Plan" landed, achieving terminal delivery in many European countries. The cumulative orders of the high-end SUV Lynk & Co 09 have exceeded 10,000. The high-end SUV Lynk & Co 09 has accumulated orders of more than 10,000 units.
In the high-end intelligent electric vehicle market, the first model of the Krypton 001, which was established in March last year, has an average order price of 335,000 yuan, and has delivered more than 12,000 units in four months, setting a record for the fastest delivery speed of high-end intelligent electric vehicle companies. In August last year, Extreme Kr completed the Pre-A round of financing, with a valuation of $9 billion.
No. 23 is the first anniversary of the establishment of The Krypton Company, the chairman of Geely Automobile Group, the executive director of Geely Automobile Holdings Co., Ltd., the CEO of Extreme Kr Intelligent Technology An Conghui An Conghui summed up, on April 15 last year to open the brand release and accept the booking, October 23 began product delivery, last two months, a little more than two months, the cumulative delivery reached 6,000 units. By February this year, the cumulative delivery volume reached 12453 units, it should be said that this is the high-end intelligent electric industry, the fastest cumulative delivery of enterprises exceeding 10,000.
As a high-end electric vehicle brand of Geely Group, the price of Extreme Kr's bicycles reached 335,000 yuan per vehicle, which is close to the luxury brand. So far, the entire extreme krypton order is also very good, and the factory with an annual output of 300,000 units of extreme krypton has also been tested and has the ability to mass produce.
The phased success of JiKr and Lynk & Co, coupled with the loan balance and net profit of Jizhi Auto Finance, maintained rapid growth, up 15% and 45% year-on-year, respectively, and maintained a consistent and stable risk control system, and the bad debt rate was maintained at a low level for a long time. As a result, Geely Automobile's cash reserves are sufficient, with a net cash of 20.8 billion, reaching a record high. The payout ratio has maintained five consecutive years of growth.
The law of continuous outperformance in the future
Unlike the new forces that rely on capital to drive cars and generally make huge losses in the early stage, Geely Automobile's stable profits and sufficient cash flow guarantee can be said to be more practical and stable.
Ganjiayue announced that Geely Automobile's full-year sales target for 2022 is 1.65 million (including 70,000 units of Extreme Kr). "With the comprehensive promotion of the "Smart Geely 2025" strategy, building Geely's leading system strength in the era of intelligent new energy vehicles will ensure that we can cope with various uncertainties to ensure the achievement of the annual target." Gan Jiayue revealed that in 2022, Geely will continue to expand the advantages of "architecture car manufacturing" and accelerate the efficiency of architecture car building, the model built by modular architecture will increase to 70% of the proportion, and the proportion of Chinese stars in the Geely brand will increase to more than 30%.
Second, giving full play to the advantages of architecture combined with hybrid and new energy technology, Geely will launch more than 8 models of Thor Hi · X oil-electric hybrid and super electric hybrid products, among which the large-mileage PHEV star models led by Xingyue L and Lynk & Co 09 will be launched one after another this year, and the maximum price will exceed 400,000 yuan, achieving brand premium power and profitability. In terms of pure electricity, Extreme Kr Intelligent Technology will launch the second luxury intelligent pure electric MPV created by the Vast Architecture.
Third, improve the level of product intelligence, more than 8 new models are equipped with GEEA2.0 electronic and electrical architecture, the application of a new generation of intelligent driving and intelligent cockpit system.
Fourth, maintain the rapid growth of exports, of which the Geely brand accelerates the expansion of new markets in Europe, Australia and New Zealand and South America, and Lynk & Co continues to deepen the market in developed european regions and the Middle East; geometric pure electricity lands in Europe and Southeast Asia.
In order to promote the achievement of the goal, 2022 is also a big year for Geely Automobile's products, and in 2022, Geely will launch five Thor super hybrid models, three Thor oil-electric hybrid models, a alcohol-electric hybrid model, a new luxury intelligent pure electric MPV of the Extreme Kr brand, two new SUVs of the Geely brand, and a new pure electric SUV. In addition, Geely established a joint venture with Lifan Technology in January 2022 - Ruilan Automobile, focusing on creating a power exchange travel ecology, and will launch two new power exchange products in 2022.
At the same time, Geely will comprehensively empower and upgrade the sales network with new energy, open up Geely's main dealer resources, concentrate superior resources, strengthen and expand the Geely geometric pure electricity sales network, and increase the coverage of pure electricity. In addition, Thor Super Electric Hybrid will also fully empower Geely's main sales network G network and L network, and Geely's new energy transformation will enter a new era.
Extreme Krypton has proposed a sales target of 650,000 yuan by 2025, and will also unswervingly promote it. "We will strive to rank among the top three in the world in terms of market share in the high-end electric vehicle industry," An Conghui said.
Geely's confidence to continue to lead in the future comes from its continuous investment in research and development. Dai Qing revealed: Last year, Geely Automobile's overall R&D investment was 5.5 billion, an increase of 16% year-on-year, of which capitalization investment was 4.25 billion yuan and expense was 1.3 billion.
In 2021, Geely's R&D investment accounted for 5.5% of revenue, from 5.3% to 5.5% compared with 2020. In the past year, Geely Automobile's main R&D investment has been investment in Raytheon hybrid models and some investments in extreme krypton high-end intelligent electric models. At the same time, it has also increased the proportion of investment in intelligence and new energy. The results of these R&D investments will be put on the market this year and next year.
In the future, Geely Automobile will maintain a stable proportion of R&D investment in revenue, maintaining a horizontal line of about 5.5%. This stable investment in technology will continue to promote Geely Automobile's ability to maintain a leading position in future competition.
Yuguan Car City was founded by Yu Linglin, an automobile reporter who has been in the industry for more than ten years, all articles in this public account are original, and only represent personal views, copyright, please contact the author's public number for reprinting: 2844125311, and can be reproduced with consent, and please indicate the source and author.
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