On March 23, Geely Automobile released its 2021 financial report, with annual revenue of 101.6 billion yuan, an increase of 10.3% year-on-year. After 2018, the revenue returned to the level of 100 billion, and the cash flow was 28 billion yuan, the highest level in history.
However, Geely Automobile's net profit in 2021 was 4.35 billion yuan, down 21.9% year-on-year, compared with 5.57 billion yuan in the same period last year. For the decline in net profit, Geely Automobile explained that it was mainly due to the shortage of global chip supply during the year.
It should be noted that the net profit has declined synchronously for three years, which is also related to Geely Automobile's vigorous investment in research and development. 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 yuan.
"In the future, Geely Automobile will maintain a stable proportion of R&D investment in revenue, maintaining a horizontal line of about 5.5%." Dai Qing, senior vice president and CFO of Geely Automobile Group, revealed that in terms of R&D investment structure, on the one hand, it will increase investment in the field of intelligent software in the future, and on the other hand, it will further enhance and give play to the advantages of modular architecture car manufacturing in terms of cost, quality consistency and efficiency.
This year's financial report data shows that Geely Automobile's research and development results have gradually become prominent, and product profitability has improved. In 2021, the average sales price of Geely Automobile's bicycles reached 87,672 yuan, an increase of 9.0% year-on-year. Among them, the proportion of models with a guidance price of less than 100,000 yuan has dropped from 64% to 34%; the proportion of models with a guidance price of 100,000-150,000 yuan has increased from 25% to 44%; and the proportion of models with a guidance price of more than 150,000 yuan has increased from 11% to 22%.
The high-end performance of Lynk & Co and Extreme Kr is worth mentioning. The average weighted transaction price of Lynk & Co products reached 165,000 yuan, and the cumulative sales volume of the fifth anniversary of the listing exceeded 650,000 units. The average order price of the Krypton brand reached 335,000 yuan, and the first model, the Krypton 001, has been delivered in 12,453 units in four months since it began to be delivered in October 2021, and is expected to hit the target of 70,000 vehicles this year.
Geely Automobile's profit structure has also been further diversified. 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 technical services and licensing profits continued to grow, an increase of 245.3% year-on-year, of which licensing revenue has become a new profit growth point for the company, from product output to technology output, the diversified profit structure ensures the high-quality development of Geely Automobile.
This year is the big year of Geely's products, will launch five Raytheon super hybrid models, three Raytheon oil-electric hybrid models, a pure electric hybrid model, Geely brand two new SUVs and geometric brand pure electric SUVs, extreme krYPPV models will be delivered in the fourth quarter of 2022, and the Krypton brand will deliver 70,000 vehicles this year. Looking ahead to 2022, Geely said it is confident of its goal of delivering 1.65 million vehicles for the full year.
[Reporter] Wei Hongquan
【Author】 Wei Hongquan
【Source】 Southern Press Media Group South + client