With revenue of 101.6 billion yuan in 2021, Geely Automobile continued to electrify and transform intelligently

On March 23, Geely Automobile Holdings Limited (hereinafter referred to as "Geely Automobile") (0175. HK) released its 2021 financial report. According to the data, in 2021, listed companies achieved revenue of 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; profit attributable to shareholders was 4.85 billion yuan; and net profit was 4.35 billion yuan. Total cash reached RMB28 billion, an all-time high, with net cash reaching RMB20.8 billion. 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.

Since the end of 2021, technology stocks, Chinese stocks and auto stocks have ushered in a cold winter, and Geely Automobile's stock price has fallen from more than HK$28 in August 2021 to HK$12 today. Gui Shengyue, CEO of Geely Automobile Holdings Co., Ltd., said: "The company's stock price performance is affected by many factors such as macro environment, industry policies, market fluctuations, etc. From the current valuation level of Geely Automobile, the company believes that there is still a lot of room for improvement. ”

Diversification of profit structures

In 2021, Geely Automobile's total annual sales reached 1.328 million units, winning the annual sales championship of Chinese brand passenger cars for five consecutive years. With the optimization of product structure and the improvement of profitability, the overall average bicycle revenue of Geely Automobile (including Lynk & Co) was 87672 yuan, an increase of 9.0% year-on-year.

Among them, the geely brand CMA high-end series "China Star" series sold more than 200,000 vehicles last year, realizing the upward development and value jump of the Geely brand. In 2021, the global new high-end brand Lynk & Co celebrated its fifth anniversary, with cumulative sales exceeding 650,000 vehicles. The average weighted transaction price of Lynk & Co products reached 165,000 yuan, successfully standing in the core area of the mainstream market, and Lynk & Co 09 has entered the price range of the luxury car market.

Geely Automobile said that the new pure electric brand Extreme Kr launched in April 2021 quickly built a complete pure electric intelligent technology ecosystem, and the first model, Extreme Kr 001, has delivered 12,453 units in four months since the delivery of the first model, Krypton 001, with an average order price of 335,000 yuan, which is expected to hit the sales target of 70,000 vehicles this year. In the next three years, Extreme Kr will launch 6 new products to meet the needs of more users with a more comprehensive product layout.

In 2021, the net profit of the joint venture company (Lynk & Co and G&Z Financial) increased by 42%, of which the net profit of Lynk & Co increased by 37% and the net profit of G&G Financial increased by 45%.

Li Donghui, CEO of Geely Holding Group, introduced that with the help of high-end research and development, technology licensing has become a new profit growth point for Geely Automobile. In 2021, Geely Automotive's technical licensing and R&D services have achieved revenue of 4.5 billion, an increase of 245% over 2020. Among them, the revenue of technology licensing was 1.275 billion, an increase of 125% year-on-year. "Based on the cooperation agreement with other brands under Geely Holding Group and partners in the Geely Holding ecosystem, Geely Automobile's technical licensing and technical service revenue will maintain a stable growth trend in the future."

It is reported that in 2022, Geely Automobile will set its sales target at 1.65 million vehicles and will continue to transform to electrification and intelligence.

Strengthen the intelligent and electrified layout

According to the data, 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, and in 2022, it will continue to increase R&D investment in new energy products. It is precisely because of the emphasis on self-developed technology that it has rapidly promoted the development of Geely Automobile's comprehensive intelligent and electrified layout.

In 2021, Geely Automobile's new energy and electrification sales exceeded 100,000, of which the geometric growth reached 145.3%, and the market share of the A-class pure electricity market reached 7.43%, ranking third.

In October 2021, "Smart Geely 2025" was officially released, which will continue to promote Geely's accelerated transformation into the era of the new four modernizations and build a full-stack self-developed ecosystem in the core technologies of new energy, automatic driving, intelligent networking, and intelligent cockpit. "Thor Power" is an important part of the "Smart Geely 2025" strategy, marking Geely's comprehensive entry into the "Power 4.0" new era of power technology electrification. The highlights of "Thor Power" are that the thermal efficiency reaches 43.32%, the fuel saving rate exceeds 40%, and the dynamic 100 km/h acceleration is 7.9 seconds, which not only achieves the dynamics, but also achieves the effect of fuel saving.

Geely Automobile Group CEO Gan Jiayue said that in 2022, Geely will continue to increase investment in research and development of new energy products, and make full efforts in pure electricity, super mixing, alcohol-electric hybridization, power exchange and other tracks. The specific planning of new energy includes: in 2022, five Raytheon super hybrid models, three Raytheon oil-electric hybrid models, one alcohol-electric hybrid model, a new luxury intelligent pure electric MPV of the Krypton brand, two new SUVs of the Geely brand, and a new pure electric SUV of geometry will be launched.

In 2021, Geely, as one of the main drafting units of the "Safety Requirements for Electric Vehicle Replacement", participated in the formulation of national standards, line standards, group standards and other standards. At present, Geely has a comprehensive layout of the power exchange model, and will make full use of the existing technical foundation to create a market-leading charging and replacing technology platform.

Based on the exclusive power exchange architecture, Geely launched a new "power exchange travel brand" Ruilan Automobile, focusing on the landing of power exchange products and power exchange services, officially opening up a new situation of Geely's power exchange. In 2022, Ruilan Automobile plans to launch a new flagship replacement SUV model, fully opening up the private user market.

In addition, Geely Automobile will accelerate the process of intelligent networking, focus on strengthening software self-research, and accelerate the realization of a new generation of intelligent driving and intelligent cockpit applications. In terms of smart cockpit, the "new generation of smart cockpit" technology based on 7Nm chip will be displayed this year and will be the first to be installed 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.

Geely said that it will strengthen the technology ecosystem and create a technology moat by laying out new energy technology, internet of vehicles, automatic driving, low-orbit satellites, on-board chips, operating systems and other businesses.

Gui Shengyue said: "The company is still firmly optimistic about the long-term investment value of the automobile and global mobility market in the future, and also predicts that the demand in China's passenger car market will continue to grow steadily. Over the years, the company has made a series of scientific and technological ecosystem layouts around intelligence and electrification, and it is believed that it will eventually feed back into the consumer market, form a stable technical moat of Geely, and lay the basic plate for long-term development. ”

"Geely Automobile has sufficient upward growth momentum in the future, and I believe that market performance will eventually return to a level that matches value." Gui Shengyue said.

Responsible Editor: Li Yan'an Editor-in-Chief: Yu Jianping