Geely Automobile Holdings Co., Ltd. (hereinafter referred to as "Geely Automobile") recently disclosed the 2021 financial report, showing that the company's total revenue last year was 101.6 billion yuan, an increase of 10.3% year-on-year; profit attributable to shareholders after deducting share payments was 6.06 billion yuan, an increase of 9.4% year-on-year; and the total cash level reached 28 billion yuan.
In addition, the Company proposes to pay a dividend of HK$0.21 per share, representing a dividend payout ratio of 35.3%, an increase of 5.8 percentage points over 2020.
According to the data of Oriental Wealth Network, as early as 2018, the total operating income of Geely Automobile was 106.595 billion yuan, which also exceeded 100 billion. Last year, 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. The company's future research and development focus is intelligent and electrified.
It is worth mentioning that Geely Automobile's total sales in 2021 totaled 1.328 million units, an increase of 0.6% over 2020, and won the annual sales championship of Chinese brand passenger cars for five consecutive years.
In terms of business, in 2021, Geely Automobile's other revenues such as technical services and licensing profits continued to grow, up 245.3% year-on-year. Geely pointed out in the financial report that licensing revenue has become a new profit growth point for the company, and technology output is an important and sustainable direction for future profit sources.
Source: Oriental Fortune Network
Geely Automobile said that in 2021, Geely's core financial indicators will continue to improve, cash levels will be excellent, and overseas markets will be steadily developed. 2022 is still a year of fruitful results for Geely's technology and products, adhere to technological innovation, continue to focus on the leading edge of architecture, comprehensively promote the implementation of the smart Geely 2025 strategy, create a diversified new profit model, and make feasible solutions in supply chain security, and are full of confidence in the goal of delivering 1.65 million vehicles throughout the year.
For future development, Geely Automobile Group CEO Gan Jiayue said at the Geely Automobile 2021 annual results conference that in 2022, Geely will continue to increase investment in research and development of new energy products, and make full efforts on pure electricity, super electric hybrid, alcohol-electric hybrid, power exchange and other tracks.
Looking back at 2021, despite multiple factors such as repeated epidemics, rising raw material prices, and chip shortages, which have led to pressure on production and sales, and sales in the domestic market have declined, export performance has still promoted the growth of Geely's production and sales, making Geely Automobile win the annual sales championship of Chinese brand passenger cars for five consecutive years.
According to the data released by the China Association of Automobile Manufacturers, in 2021, the cumulative sales of Chinese brand passenger cars reached 9.543 million units, an increase of 23.1% year-on-year, and the market share reached 44.4%, up 6.0 percentage points year-on-year.
The overall market share of Chinese brand passenger cars has been closely related to the collective efforts of Chinese auto companies in recent years. Taking Geely Automobile as an example, in 2021, Geely Automobile's total annual sales reached 1.328 million units, and its production and sales exceeded one million units for five consecutive years. It is worth noting that the overall average bicycle revenue of Geely Automobile (including Lynk & Co) was 87,700 yuan, an increase of 9% year-on-year, and the brand premium ability has improved. In 2021, the cumulative sales volume of the Lynk & Co brand exceeded 650,000 vehicles. The average weighted transaction price of Lynk & Co products reached 165,000 yuan.
In 2021, Geely's wholesale car sales in Chinese mainland (including the "Lynk & Co" brand, in which the Group has a 50% interest), fell 3% year-on-year to 1,213,000 units. However, demand in major export markets recovered rapidly, with export sales in 2021 growing by 58% year-on-year to 115,000 units.
Geely also said that the company has entered the high-end intelligent electric vehicle market through its new subsidiary, Extreme Kr Holdings, and the establishment of Extreme Kr Holdings will accelerate the company's transformation into a new technology company. In 2021, In October 2021, The first model, The Krypton 001, was delivered for the first time, with a total of 6,009 units delivered.
In terms of new energy vehicles, in 2021, Geely's sales of electrified vehicles exceeded 100,000, of which the geometric increase was 145.3%, and the market share in the A-class pure electricity market reached 7.43%. It has been laid out on pure electric, super electric hybrid, alcohol-electric hybrid, power exchange and other tracks.
It is worth mentioning that Geely pointed out in the 2025 plan that in the future, it will enhance the brand's premium ability through its efforts in the field of intelligent electric vehicles.
In addition, the financial report also shows that due to the continued good operating cash inflows last year, coupled with the Pre-A round of external financing by Extreme Kr Holdings, the company's total cash level, including bank balances and cash + mortgaged bank deposits, increased by 46% at the end of 2021 to 28 billion yuan.
The financial report also disclosed that the Group's capital expenditure budget for 2022 (excluding acquisitions through business mergers) is approximately $9.2 billion, including funding for the development of new vehicle platforms and models, as well as the expansion and upgrading of production facilities at existing plants. The Company does not have a specific plan or timetable for raising capital in the international capital markets.
Thanks to the continuous improvement of the company's core financial indicators, international rating agencies have raised Geely Automobile's outlook. At the end of 2021, Standard & Poor's Global Ratings confirmed the long-term credit rating of Zhejiang Geely Holding Group and its subsidiary Geely Automobile as "BBB-", and the outlook rose to "stable".
S&P said in the report that it is expected that from 2022 to 2023, Geely's annual sales volume will grow at an annual rate of 5%-9%, and the EBITDA margin is expected to remain at about 8%. S&P predicts that Geely Holdings will continue to maintain its market position in the future, and the growth rate will remain above the industry average. (Beijing time finance and economics Xiang Yu)