After a 2021 year of lack of cores, epidemic, raw material price increases and other unfavorable factors, Geely Automobile Holdings Co., Ltd. (0175. HK, hereinafter referred to as "Geely Automobile") handed over a bright "report card".
On March 23, Geely Automobile released its 2021 financial report showing that the company achieved revenue of 101.6 billion yuan in 2021, 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; profit attributable to shareholders of 4.85 billion yuan; net profit of 4.35 billion yuan. In addition, Geely Automobile's cash flow management was stable, with total cash reaching 28 billion yuan, a record high, and net cash reaching 20.8 billion yuan.
Geely Automobile Group CEO Gan Jiayue said in an interview with China Business Daily and other media reporters: "2021 is the first year that Geely entered the 4.0 era, and it is also a key year for Geely Automobile's high-quality development: Geely Automobile will ship 1.328 million vehicles in 2021, winning the chinese brand passenger car sales championship for five consecutive years; achieving more than 1.4 million terminals, an increase of 11.4% year-on-year, and the domestic market share has increased year-on-year." ”
It is worth mentioning that under the industry wave of "new four modernizations", Geely Automobile's new energy transformation is accelerating in an all-round way. Relevant data show that in 2021, Geely Automobile's new energy and electrification sales exceeded 100,000 units, an increase of 47% year-on-year.
For this year's development plan, Dai Qing, senior vice president and CFO of Geely Automobile Group, said that Geely Automobile's annual sales target for 2022 is 1.65 million units (including 70,000 kryptonian vehicles). "With the comprehensive promotion of the 'Smart Geely 2025' strategy, building Geely's leading system in the era of intelligent new energy vehicles will ensure that we can cope with various uncertainties to ensure the achievement of the annual target."
The brand premium ability is highlighted
"In the past year, the company has fully entered the era of 'Technology Geely 4.0', with China Star High-end Series, Lynk & Co brand, new energy and overseas exports achieving high growth, and our total sales volume was 1.328 million units. We have improved profitability from multiple perspectives such as product structure optimization, technology output, and joint venture force, and cash flow has also reached a record high. Dai Qing said.
From the perspective of sales structure, China Star high-end series, Lynk & Co, new energy and export performance is outstanding. From the distribution chart of the product market guidance price, the proportion of products priced at 100,000 to 150,000 yuan and more than 150,000 yuan increased by 30%. In addition, the proportion of Geely Automobile's high-value products increased, resulting in an increase in the overall average bicycle price in 2021 by 9% year-on-year to 88,000 yuan. This also means that Geely Automobile's brand premium ability is constantly prominent, and high value is also helping Geely's brand to continue to rise.
Specifically, the cumulative sales of the Geely brand CMA high-end series "China Star" series in 2021 exceeded 200,000 vehicles. It is reported that in 2021, the average selling price of the China Star series will reach 150,000 yuan, with a maximum monthly sales of nearly 30,000 vehicles; the average price of the China Star flagship SUV Xingyue L will reach 170,500 yuan, and the average monthly sales have exceeded 10,000 vehicles.
The cumulative sales of the Lynk & Co brand exceeded 650,000 units in the fifth anniversary of its launch, and the sales volume exceeded 220,000 vehicles in 2021, achieving double growth in annual sales and net profit. In addition, the average weighted transaction price of Lynk & Co brand products reached 165,000 yuan, and Lynk & Co 09 has entered the price range of the luxury car market, and the cumulative orders have exceeded 10,000.
The new pure electric brand Extreme Kr launched in April 2021 has also quickly built a complete pure electric intelligent technology ecosystem, and the first model, Extreme Kr 001, has delivered 12,453 vehicles in four months since it began to be delivered in October 2021, with an average order price of 335,000 yuan, which is expected to hit the sales target of 70,000 vehicles this year.
An Conghui, chairman of Geely Automobile Group, executive director of Geely Automobile Holdings Co., Ltd. and CEO of Extreme Kr Intelligent Technology, said that in the next 3 years, Extreme Kr will launch 6 models. At the same time, in 2022, the Extreme Kr OTA will carry out 5 major version updates and several small version experience optimizations, the download and installation time will be further reduced, and the installation success rate will continue to increase.
"Although the uncertainty of the epidemic and supply chain is large, but the determination of Extreme Kr to achieve 650,000 sales in 2025 is unswerving, we are confident that the global high-end electric vehicle market share ranks among the top three in the world." An Conghui said.
It is worth mentioning that for the problem of chip supply chain, Gan Jiayue said that the company will actively respond to the uncertainties brought by the supply chain, and will continue to strengthen the deployment of localization and self-developed chips in the future, and solve the problem of chip shortage in a multi-faceted manner through a variety of technical route schemes.
The year-on-year optimization of the product structure has also contributed to the diversified development of Geely Automobile's profit structure: in 2021, the net profit of the joint venture company (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 G&G Financial increased by 45%. Other revenues, such as technology services and licensing profits, continued to grow, up 245.3% year-over-year. From product output to technology output, the diversified profit structure ensures 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 that in 2021, Geely Automobile's direct income from technology licensing reached 1.275 billion yuan, an increase of 125% year-on-year, becoming a new profit growth point for the company. "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."
The reporter learned that in terms of overseas exports, Geely Automobile will sell 115,000 vehicles to overseas markets in 2021, an increase of 58.2% year-on-year, and 24 new sales outlets will be added. In the 20 years since "going to sea", Geely Automobile's business footprint has covered 28 countries, and its overseas sales and after-sales outlets have reached 227.
The transformation of new energy has been accelerated in an all-round way
In terms of new energy transformation, Geely's new energy transformation has accelerated in an all-round way and entered the fast lane of development. Relevant data show that in 2021, Geely's total sales of new energy and electrified models were 100,126 units, an increase of about 47% year-on-year, and in addition to pure electric and PHEV models, a number of HEV models were also launched.
In the field of hybridization, in October 2021, Geely Automobile officially released the global power technology brand - Raytheon Power and the world-class modular intelligent hybrid platform - Raytheon Intelligence Engine Hi · X。 In terms of key technologies, Ray's Mind Ishi · X is the only hybrid system that can achieve FOTA upgrades, with up to 20 intelligent driving modes; the first production three-speed hybrid transmission; engine thermal efficiency of 43.32%, fuel saving rate of more than 40%, and a tank of fuel range of more than 1300 kilometers.
As the first model to carry the Thor God Spirit Engine Hi · The model of the X three-speed hybrid electric drive transmission DHT Pro, the Star-Etsu L Raytheon Hybrid Edition, was launched on December 25, 2021, and the 2022 pre-sale places were sold out in 8 minutes and 21 seconds. The Star-Etsu L Thor Hybrid Edition is expected to be officially delivered at the end of March this year. It is reported that in 2022, more than 8 models of Thor Hi · X-oil hybrid and super hybrid products are planned to be launched on the market.
The reporter noted that on March 24, the god of thunder Hi · X "Super Electromix" was officially released. Gan Jiayue introduced that the god of thunder Hi · X "Super Mix" is a follow-up to Thor Hi· After X "HEV", based on the "Thor Theosophical Engine Hi · X" hybrid platform to create a new generation of "large mileage PHEV".
In the field of pure electricity, the sales volume of geometric cars in 2021 reached 55,320 units, an increase of 145.3% year-on-year, and the market share of the A-class market was 7.43%, the market potential should not be underestimated, and the overall sales volume is expected to reach 160,000 units in 2022.
For the transformation of new energy, Gan Jiayue said: "In order to accelerate the comprehensive transformation of Geely New Energy, we will comprehensively empower and upgrade the sales network with new energy, open up the resources of Geely main network dealers, concentrate superior resources, strengthen and expand the Geely geometric pure electricity sales network, and increase channel coverage." In addition, Thor Super Electromix will fully empower Geely's main sales network G network and L network, and Geely's new energy transformation will enter a new era. ”
In addition, the first model of the high-end intelligent electric vehicle brand, Extreme Kr 001, is based on the SEA Haohan Intelligent Evolution Experience Architecture, and since the delivery began in October last year, a total of 12,453 units have been delivered in four months, with an average order price of 335,000 yuan, and the MPV model will be launched in the fourth quarter of 2022. By 2025, the annual sales target of Extreme Kr is 650,000 units, ranking among the top three in the world in the market share of high-end electric vehicles.
Behind the brilliant achievements in the transformation of new energy, it is inseparable from the support of Geely Automobile's R&D investment. It is reported that Geely Holdings is the only car company in the TOP10 of China's R&D investment in 2021, with a cumulative R&D investment of more than 140 billion yuan in the past 10 years, more than 20,000 design and R&D personnel, and 26,000 innovative patents.
Relevant data show 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 five years was 25.6 billion yuan. The reporter learned that in 2022, Geely Automobile will continue to increase its research and development investment in new energy products, and make full efforts on pure electricity, super mix, alcohol-electric hybrid, power exchange and other tracks.
Not only that, Geely Automobile is also accelerating the process of intelligent networking. It is reported that 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. As the official partner of the 2022 Hangzhou Asian Games, Geely Automobile will provide 1,800 passenger cars for the Connection Service of the Hangzhou Asian Games and implement a 6V5R intelligent driving system (NOA).
Actively practice ESG at multiple levels
The automotive industry must be a global industry, under the premise of global compliance, Geely Automobile said that it is necessary to adhere to the domestic cycle, but also to 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.
It is understood that under the new development pattern of double circulation, Geely Automobile has actively integrated into global competition and steadily developed 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 to deliver in four countries in the Middle East, creating a model for China's high-end brands to go overseas.
Actively practicing the concept of sustainable development and fully considering the global dual-carbon timetable, Geely Automobile has set a carbon neutrality goal: to achieve a full-link emission reduction of 25% by 2025 and carbon neutrality by 2045, and will continue to increase investment and research and development in the field of methanol vehicles. In 2021, Geely Automobile was selected as a constituent stock of the Hang Seng ESG 50 Index, the Hang Seng Corporate Sustainability Benchmark Index and the FTSE Social Responsibility Index Series.
Not only that, Geely Automobile is also accelerating the construction of an intelligent energy system to achieve the goal of "double carbon". In terms of batteries, Geely Verui has fully mastered the module and Pack technology, achieved mass production, and has the ability to design batteries, and jointly established joint venture battery factories such as Times Geely with strategic partners to form a diversified layout of batteries.
In terms of electric drive, Geely Automobile will apply 800V, based on the controller of silicon carbide power devices and high-efficiency oil-cooled motors, to achieve a comprehensive efficiency of more than 92%, a maximum power of more than 475 kilowatts, and the most extreme product can achieve an ultra-high-performance experience of accelerating less than 3 seconds from 100 kilometers.
In the field of power exchange, in 2021, Geely Automobile, 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 Automobile has made 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.
It is worth mentioning that in January 2022, Geely Automobile established the Ruilan Automobile brand, positioned as a "new generation of power replacement travel new potential energy", which is based on the listing of the first power replacement car Maple Leaf 60S under the GBRC platform, with a total sales volume of 3301 units (as of the end of February 2022). In 2022, Ruilan Automobile plans to launch a new flagship replacement SUV model, fully opening up the private user market.
The reporter learned that in order to accelerate the creation of an ecology in the field of power exchange, Geely Automobile will lay out 5,000 efficient modular power stations (extremely fast power stations) in 2025, realizing the experience of speeding power exchanges in only 60 seconds per vehicle, serving 1,000 times a day at a single station, covering 100 core cities, and meeting the power exchange needs of 1 million vehicles.
In addition, in the field of new fuels, in 2022, Geely Automobile will launch the "Thunder God Intelligence Engine Methanol Hybrid" model, with a 100-kilometer alcohol consumption of about 9L, a reduction of more than 40% in alcohol consumption, and a travel cost of less than 3 cents per kilometer. By 2025, the alcohol consumption of 100 kilometers will be reduced to 7.6L, which is equivalent to 3.5L of fuel consumption per 100 kilometers, and the travel cost per kilometer will be 2 cents.
"Looking forward to 2022, the world is in a period of turbulence and change, there is considerable uncertainty in the global macroeconomic trend, and the automotive industry is facing challenges such as rising raw material prices and chip shortages." Geely Automobile said that based on the industrial accumulation over the past many years, Geely Automobile on the one hand actively coordinates supply-side resources and makes feasible plans in terms of supply chain security, on the other hand, it strengthens the self-research capabilities of intelligent electric vehicles, continues to increase investment in research and development, creates a new energy vehicle technology ecology, creates more "star products" for different market segments, and leads the transformation and upgrading of the industrial chain with high-quality development.