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On March 23, Geely Automobile disclosed its 2021 financial report,
The company's total revenue in 2021 is 101.6 billion yuan,
An increase of 10.3% year-on-year.
In 2022, Geely plans to deliver 1.65 million vehicles for the whole year.
While revenue growth, Geely will also consolidate the stability and security of its supply chain. At the 2021 annual results conference of Geely Automobile, Geely CEO Gan Jiayue said that it will continue to strengthen the route of deploying self-developed chips, and solve the problem of chip shortage in a variety of ways through a variety of technical route solutions.
Revenue growth Net profit declined
According to the data, Geely Automobile's revenue in 2021 increased by 10.3% year-on-year to 101.6 billion yuan. Profit attributable to shareholders net of share payments was RMB6.06 billion, up 9.4% year-on-year.
In addition, Geely Automobile's 2021 financial indicators improved overall, with a total cash level of 28 billion yuan, a record high, and net cash of 20.8 billion yuan.
In terms of sales, Geely Automobile sold 1.328 million units in 2021, resulting in revenue of 87.697 billion yuan, an increase of 4.63% over the same period last year, accounting for 86.32% of the company's total revenue. However, it failed to meet the sales target set for 2021 (1.53 million units, the actual sales volume was 1.328 million units, the completion rate was 86.8%).
The overall average bicycle revenue of Geely Automobile (including Lynk & Co) was 87,672 yuan, an increase of 9.0% year-on-year, and the brand premium and high value helped the brand continue to rise. In terms of new energy vehicles, Geely Automobile exceeded 100,000 units last year.
It is worth noting that Geely Automobile's revenue growth also comes from licensing revenue. Li Donghui, CEO of Geely Holding Group, pointed out that in 2021, Geely Automobile's direct income from technology licensing reached 1.275 billion yuan, an increase of 125% year-on-year.
In 2021, 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%. Other revenues, such as technology services and licensing profits, continued to grow, up 245.3% year-over-year.
In terms of overseas markets, in 2021, Geely Automobile exported a total of 115,000 units to overseas markets, an increase of 58.2% year-on-year. In terms of overseas markets, it mainly focuses on four major markets such as Eastern Europe, Malaysia, the Middle East and Northern Europe.
Geely Automobile's sales target for this year is 1.65 million units, of which The Company's sales target for Kr is 70,000 units. Geely Automobile plans to achieve a total group sales of 3.65 million units in FY 2025. Among them, There are 650,000 vehicles of Extreme Kr Technology, 3 million vehicles of Geely Automobile, and 600,000 vehicles in overseas markets.
Although there is an increase in revenue in 2021, it is worth noting that Geely Automobile's net profit is only 4.85 billion yuan, compared with 5.57 billion yuan in the same period of the previous year, a year-on-year decline of 12.9%, and also lower than the market expectation of 6.55 billion yuan. So far, Geely Automobile has experienced a decline in net profit for three consecutive years.
Power chip self-research and deployment
For the decline in net profit, Geely Automobile attributed the reason to the shortage of chip supply. Geely's 2021 financial report mentioned that there is no sign of abating competition in China, rising raw material prices, other outbreak-related disruptions and global chip supply shortages, and will continue to put pressure on the Group's sales performance and profitability in 2022.
Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, said publicly that there is still a big gap in the current supply of automotive chips, and compared with the fourth quarter of last year, there is still no significant improvement, and car companies still have to go through a long wait to buy chips.
Geely Automobile Group CEO Gan Jiayue said that the company will actively respond to the uncertainties brought about by the supply chain, and will continue to strengthen the deployment of self-developed chips in the future, and solve the chip shortage problem in a variety of ways through a variety of technical route solutions.
At present, the automotive intelligent chip market is dominated by a few overseas manufacturers, chip research and development requires a lot of capital investment and long-term accumulation, industry barriers are high, and it is difficult for new manufacturers to enter. Suppliers with a large share of the ADAS chip market are Mobileye, NVIDIA and Tesla, and the smart cockpit market is dominated by Qualcomm, Renesas and NXP.
On the road of self-development, Hubei ECARX invested by Geely and Anmou Technology are a technology enterprise specializing in automotive semiconductors. At the end of 2021, its self-developed cockpit chip "Dragon Eagle One" design has been verified and meets the vehicle-level AECQ100 Grade 3 standard. "Dragon Eagle One" is very close to Qualcomm 8155 in terms of performance and process, and will be the first high-end intelligent cockpit chip with 7nm process in China after mass production.
In addition, Geely will launch in-vehicle chips with 5nm processes and high-computing automatic driving chips with a computing power of up to 256TOPS from 2024 to 2025 to realize the commercialization of L4 level autonomous driving.
It is worth mentioning that recently there is news that Yijiatong is considering listing in the United States through SPAC (commonly known as "backdoor listing").
In addition to self-research, Geely is also ensuring the supply of chips through joint ventures. At the end of December 2021, Shandong Fujikang Intelligent Manufacturing Co., Ltd., a joint venture between Geely Automobile and Foxconn, was established with a registered capital of 100 million yuan and each holding 50% of the shares, and the company's business scope includes intelligent control system integration, power electronic component manufacturing, integrated circuit chip and product manufacturing. Geely invested in the construction of the company, the purpose of which is to alleviate the shortage of geely automobile semiconductor chips.