According to the surging news, Geely Automobile's financial performance in 2021 is lower than management expectations.
Geely Automobile Holdings Limited announced its 2021 financial results for the year ended December 31, 2021. For the whole year of 2021, Geely Automobile's revenue was 101.61 billion yuan, an increase of 10.3% year-on-year; net profit was 4.35 billion yuan, down 22% year-on-year; net profit attributable to the company's equity holders was 4.85 billion yuan, down 12% year-on-year; earnings per share were 0.48 yuan, down 15% year-on-year.
In addition, Geely Automobile intends 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.
In the "Management Discussion and Analysis" item of the earnings report, Geely Automobile said that its financial performance in 2021 was lower than the original expectations of management, mainly due to the shortage of global chip supply during the year.
In terms of automobile sales, Geely Automobile's annual sales in 2021 were 1.328 million units (including Lynk & Co), an increase of 1% year-on-year. From the perspective of financial data, in the whole year of 2021, Geely Automobile's revenue was 101.61 billion yuan, an increase of 10.3% year-on-year; net profit was 4.35 billion yuan, down 22% year-on-year.
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. By 2025, the annual sales target of Extreme Kr is 650,000 units.
To be honest about seeing geely automobile's financial report, the biggest feeling is that geely automobile's financial report is not very good, the overall net profit decline is still relatively obvious, it can be said that geely automobile is now also facing a problem of increasing revenue and not increasing profits, so how should we look at the financial report of Geely automobile?
First of all, from the performance of Geely Automobile's overall financial report, although the performance is not particularly ideal, but at least this performance is not bad, after all, last year the entire automobile industry faced an extremely serious chip shortage problem, resulting in major auto companies in the entire market more or less have different degrees of problems, Geely Automobile can not actually be alone, under the nest, no end of the egg is a common situation in the entire industry For Geely Automobile, there may not be a good way for Geely Automobile. So what we see is that the overall profit level of Geely Automobile is not ideal, and there is no way to do this.
Secondly, what we see is that the transformation of Geely Automobile to the direction of new energy vehicles is actually very obvious, we look at the development of the entire Geely Automobile electric vehicle brand is very clear, and Geely Automobile's R & D investment has increased very much, in the past 5 years, Geely Automobile's total R&D investment reached 25.6 billion, and the focus of research and development is intelligent and electrified, so in this regard Geely Automobile can be said to be full of energy. Promoting the development of its own business is the biggest feature of Geely Automobile at present, and it is also its advantage. It can be said that this is a very important market layout of Geely Automobile, after all, when new energy vehicles have become the main direction of market development, Geely Automobile's layout can undoubtedly help itself to obtain more market advantages.
Third, what we see is that Geely Automobile has actually not only laid out in the field of new energy vehicles in recent years, but also has a layout in the mobile phone market, it can be said that Geely Automobile is changing to the direction of the whole industry chain of the automobile, if Geely Automobile can make a difference in the whole industry chain market, the current Growth Pole of Geely's automobile market will not only be the direction of traditional cars, there will be more directions, and Geely Automobile, which has more directions, can undoubtedly give the capital market more imagination space.
Therefore, we can say that the performance of Geely Automobile is indeed not very good, but the prospects for the overall market development are still worth looking forward to.