Geely Auto released its 2021 financial report.
According to the financial report, Geely Automobile achieved revenue of 101.6 billion yuan in 2021, an increase of 10.3% year-on-year. This is the second time since 2018 that its revenue has exceeded 100 billion. From 2018 to 2020, Geely Automobile's revenue was 106.6 billion yuan, 97.4 billion yuan and 92.1 billion yuan, respectively.
In 2021, Geely Automobile's net profit was 4.35 billion yuan, down 21.9% year-on-year. However, cash flow management is stable, and the company's cash flow is 28 billion yuan, the highest level in history.
Regarding the decline in net profit data, the market has commented that it is mainly due to the increase in warrant expenses and research and development expenses, which are crucial to the company's medium- and long-term value creation.
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.
Brand premium increase New energy transformation accelerated
In 2021, Geely Automobile's cumulative sales reached 1.328 million units, an increase of 0.6% over 2020, and it won 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, and the brand premium ability was highlighted.
Among them, the sales of the Lynk & Co brand exceeded 220,000 vehicles, an increase of 25.7% year-on-year; the average weighted transaction price of products reached 165,000 yuan; and the operating income reached 30.1 billion yuan, an increase of 26.47% year-on-year. The cumulative sales of the "China Star" series in 2021 exceeded 200,000 vehicles, accounting for 18.3% of the annual sales of the Geely brand.
From the distribution chart of the product market guidance price, the proportion of models below 100,000 yuan has dropped from 64% in 2020 to 34%, the proportion of models with 100,000-150,000 yuan has increased from 25% to 44%, and the proportion of models with more than 150,000 yuan has increased from 11% to 22%.
Geely's new energy transformation is also accelerating, and it has been laid out on pure electricity, super electric hybrid, alcohol-electric hybrid, power exchange and other tracks.
In 2021, Geely's electrified vehicle sales exceeded 100,000, of which the cumulative sales of geometric vehicles reached 55,000 units, an increase of 145.3% year-on-year, and the market share of the A-class pure electricity market reached 7.43%.
As Geely's high-end pure electric brand, Extreme Kr has grown at an impressive pace, from its establishment on March 23, 2021 to the release and pre-sale of its first car on April 15, and then to the delivery of the first batch of mass production vehicles on October 23, with 6,000 Krypton deliveries by the end of 2021. According to Geely, the average selling price of extreme krypton bicycles has reached 335,000 yuan.
Because The extreme krypton is still in its infancy, the scale effect is not obvious, and it is temporarily in a state of loss. According to the financial report, in 2021, the operating income of Extreme Kr Automobile was 1.822 billion yuan, and the net profit loss was 370 million yuan.
At the same time, Geely is entering the new business of power exchange through the replacement of the electric mobility brand Ruilan Automobile, and will also launch a alcohol-electric hybrid model this year.
In the future, Geely will enhance the brand's premium ability through its efforts in the field of intelligent electric vehicles, which is also considered by the industry to be the way for Chinese brands to achieve "lane change overtaking" and the highest success rate of the brand upwards.
Strengthen the layout of the scientific and technological field
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.
High-end research and development has helped technology output to promote the diversified development of Geely Automobile's profit structure. In 2021, Geely Automobile's technical licensing and R&D services have achieved revenue of 4.5 billion yuan, an increase of 245% over 2020, of which the operating income of R&D and related technical support services was 3.251 billion yuan, an increase of 336.4% year-on-year, and the operating income of intellectual property licensing was 1.275 billion yuan, an increase of 125% year-on-year.
According to industry analysts, Geely Automobile's structural output to Renault, Baidu, Foxconn and other enterprises may be the source of this income.
"With the help of high-end research and development, technology licensing has become a new profit growth point for Geely Automobile." From product output to technology output, the diversified profit structure and leading technical level ensure the high-quality development of Geely Automobile. Li Donghui, CEO of Geely Holding Group, vice chairman and executive director of Geely Automobile Holdings Co., Ltd., said at the performance meeting.
According to the "Smart Geely 2025" plan, Geely will continue to promote the company to accelerate its 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 cockpits.
At present, Geely Automobile has reached a cooperation with waymo and Baidu, an unmanned driving technology company, and JiKr has deepened its cooperation with autonomous driving company Mobileye. In addition, Geely Automobile is also developing chips independently. On October 31 last year, Geely released the first domestic 7nm vehicle specification-level intelligent cockpit chip "Dragon Eagle One", breaking the monopoly position of international suppliers in this market.
Take advantage of globalization to ensure supply chain stability
In the past year, there has been considerable uncertainty about the global macroeconomic trend, and the automotive industry is facing challenges such as rising raw material prices and chip shortages. However, Geely Automobile has withstood the pressure and not only achieved positive growth in the domestic market, but also continued to exert efforts in overseas markets that have been deeply cultivated for many years.
According to the financial report data, Eastern Europe, Malaysia and the Middle East have become an important source of Geely Automobile's external income in 2021, and the revenue of the Middle East, Northern Europe, the Philippines, Central And South America, and Africa has doubled. According to the data, in 2021, Geely Automobile exported a total of 115,000 units to overseas markets, an increase of 58.2% year-on-year.
The reason for the above achievements, Geely Automobile Group CEO Gan Jiayue said, this is mainly due to the construction of Geely's mature supply chain system.
For the 2022 development plan, Geely Automobile said that it will continue to comprehensively promote the implementation of the smart Geely 2025 strategy, create a diversified new profit model, and make feasible plans in the supply chain security, and is full of confidence in the goal of delivering 1.65 million vehicles in the whole year. However, it is not difficult to achieve this goal, geely's cumulative sales in January and February this year are 224858 vehicles, the completion rate is 13.6%, and supply will also be the most severe challenge for enterprises this year.