In the whole year of 2021, Geely once again won the annual sales championship of Chinese brand passenger cars.
At present, under the influence of the epidemic and the shortage of supply chains, the automotive industry is still facing huge challenges. However, based on the industrial accumulation over the past few years, Geely Automobile actively coordinates supply-side resources on the one hand and makes feasible solutions in supply chain security, on the other hand, it strengthens the self-research capabilities of intelligent electric vehicles, continues to increase R&D investment, and continues to build a new energy vehicle technology ecological matrix. On this basis, 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.
This domestic veteran car company is relying on the new 4.0 architecture system and gradually ushering in the harvest period.
According to Geely Automobile's financial report in 2021, Geely Automobile achieved revenue of 101.6 billion yuan, an increase of 10.3% year-on-year; profit attributable to shareholders after deducting share payments of 6.06 billion yuan, an increase of 9.4% year-on-year; gross profit of 17.4 billion yuan, an increase of 18.37% year-on-year; gross profit margin of 17.1%, an increase of 1 percentage point over the same period last year; profit attributable to shareholders of 4.85 billion yuan; net profit of 4.35 billion yuan.
At the same time, the company's cash reserves were full, with a record increase of 46% in total cash at the end of the period, a record 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.
On the other hand, the global chip shortage and rising battery prices, considering the allocation of limited resources, many mainstream car companies began to focus on bicycle profits in sales and light sales. In contrast, while Geely Automobile won the top sales, its bicycle revenue also increased by 9.0% year-on-year to HK$88,000.
In addition, Geely Automobile continues to increase its research and development, with a total investment of 5.5 billion yuan in research and development in 2021. It is equivalent to investing 4.35 billion yuan earned last year and making up more than 1 billion yuan. R&D expenses increased by 119% year-on-year to CNY 1,292 million.
The brand continues to rise and the profit structure is diversified
As the first year of the 4.0 comprehensive architecture car manufacturing era, geely automobile's product layout results have begun to be revealed. In 2021, geely automobile's total annual sales reached 1.328 million units, of which the total sales of the Geely brand CMA high-end series "China Star" series exceeded 200,000 vehicles, achieving the upward development and value jump of the Geely brand; the cumulative sales of the high-end brand Lynk & Co exceeded 650,000 units, and the average weighted transaction price of Lynk & Co products reached 165,000 yuan, successfully standing in the core area of the mainstream market. It is worth noting that Lynk & Co 09 has entered the price range of the luxury car market, setting a new benchmark for products of the same level.
On the other hand, in April 2021, Geely Group launched a new pure electric brand, Extreme Kr, which quickly built a complete ecosystem of pure electric intelligent technology, and the first model, Extreme Kr 001, has delivered 12,453 units in four months since the delivery began in October 2021, with an average order price of 335,000 yuan.
In recent years, this veteran car company has continuously carried out a series of scientific and technological ecosystem layouts around intelligence and electrification, forming a solid technical moat of Geely and laying the basic disk for long-term development. According to Li Donghui, CEO of Geely Holding Group, vice chairman and executive director of Geely Automobile Holdings Co., Ltd., the 0175 technology licensing income in 2021 will reach 1.275 billion yuan, an increase of 125% year-on-year, which has become a new profit growth point for the company.
Li Donghui said at the performance meeting: Geely Automobile will deeply cultivate the domestic market, and continue to participate in international market competition, seize the opportunity of consumption upgrading, launch more intelligent new energy products, meet more user needs with a more comprehensive product layout, and help the brand continue to rise.
Deepen the intelligent and electrified layout, and continue to increase the research and development of science and technology
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.
Geely has achieved significant advantages in the process of "new four modernizations" transformation, behind which it is not simply transformed from a traditional fuel vehicle manufacturing enterprise to a new energy automobile manufacturing enterprise, but the integrated development of automobile manufacturing, electronic communications industry, Internet industry and other industries, from the past single chain to a new automotive ecological network.
In 2022, Geely will continue to increase its investment in research and development in new energy products, and make full efforts on pure electricity, super mixing, alcohol-electric hybridization, power exchange and other tracks. This includes more than 8 models of Thor Hi · X oil-electric hybrid and super hybrid products and the new power exchange travel brand Ruilan Automobile.
To accelerate the process of intelligent networking, Geely Automobile will focus on strengthening software self-research and accelerating 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.
Behind the construction of the automotive ecological network, it is inseparable from the huge investment in research and development. It is reported that 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 5 years totaled 25.6 billion yuan, and in 2022, it will continue to increase R&D investment in new energy products.
In recent years, Geely Group has continuously built a competitive hard-core technology ecosystem around the big trip, and laid out new energy technology, Internet of Vehicles, automatic driving, low-orbit satellites, in-vehicle chips, operating systems and other businesses. As the digital economy develops and intelligent manufacturing ushers in a new stage, Geely Holding Group will aim to become a smart electric mobility and energy service technology company with global competitiveness and influence.
Hundreds of billions of giant ships, going to the world stage
At present, the world is in a period of turbulent change, and there is considerable uncertainty about the global macroeconomic trend. However, the automobile industry has always been a global industry, Geely Automobile must adhere to the domestic cycle, but also adhere to the international and domestic double cycle, give full play to the advantages of systematization, scale and globalization, ensure the safety and stability of the supply chain and industrial chain, and open up a larger market.
In the process of China's growing strength, it is inevitable to participate in global competition. Under the new development pattern of double circulation, Geely Automobile will also steadily explore overseas markets. In 2021, Geely Automobile exported 115,000 units to overseas markets, an increase of 58.2% year-on-year. Lynk & Co has achieved normalized exports to Europe, achieved terminal delivery in the Netherlands, Germany, Belgium and other markets, landed in Kuwait as the first stop of the Asia-Pacific strategy, and began delivery in four countries in the Middle East.
In addition, under the concept of sustainable development, "carbon neutrality" is also one of the important goals of car companies. Geely Automobile plans to achieve a 25% reduction in full-link emissions by 2025 and carbon neutrality by 2045, while also continuing to increase investment and research and development in methanol vehicles. For example, in 2022, Geely will launch the world's first alcohol-electric hybrid sedan - the 4th generation Emgrandol-electric hybrid sedan. Build an intelligent energy system, build a low-carbon supply chain, and lay a solid foundation for the "zero-carbon revolution" of the whole system and the whole link.
With the growing breadth and depth of Geely Group's automotive ecological network, coupled with the strength of precipitation in the automotive industry over the past two decades and the belief in science and technology, Geely Automobile's leading position and brand influence in global technology will continue to rise, and the future can be expected.