(Text/Yu Waijun Editor/Lou Bing) On March 23, Geely Automobile released its 2021 annual financial report. According to the data, Geely Automobile's annual revenue in 2021 reached 101.6 billion yuan (the same below), an increase of 10.3% over the same period in 2020, which is also the second time that Geely Automobile has achieved a revenue of more than 100 billion yuan after 2018.
In terms of cash flow, as of the end of December 2021, Geely Automobile's total cash level (bank balances and cash + mortgaged bank deposits) was 28 billion yuan, a record high, an increase of about 46% year-on-year. Among them, net cash was RMB20.8 billion.
In terms of profitability, Geely Automobile's 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 and net profit were 4.85 billion yuan and 4.35 billion yuan, down 12.3% and 21.9% respectively year-on-year.
The decline in Geely's net profit is mainly due to the following reasons: First, Geely Automobile is increasing its investment in research and development. According to the data, Geely Automobile's total R&D investment in 2021 was 5.5 billion yuan, an increase of 48% year-on-year, and the proportion of R&D expenditure to revenue rose to 5.4%. Second, factors such as chip shortages have led to higher costs in the integrated supply chain. Finally, the start-up brand Extreme Kr and the layout investment in the industrial chain have also pulled down the profit data of Geely Automobile.
The high-end transformation has achieved initial results
Behind Geely Automobile's revenue exceeding 100 billion yuan last year, it is inseparable from factors such as the increasing proportion of total automobile sales and sales of high-value products. For the full year of 2021, Geely Automobile sold 1.328 million units, an increase of about 1% year-on-year, achieving the first annual sales volume of Chinese brand passenger cars for five consecutive years. It contributed 87.69 billion yuan of revenue to Geely Automobile, an increase of 4.6% year-on-year, and accounted for 86.3% of Geely Automobile's total revenue.
Although the total sales growth rate is not very obvious, geely automobile's product structure has been significantly optimized, and the proportion of sales of high-end products is increasing rapidly. According to the data, the sales volume of Geely Automobile's products under 100,000 yuan fell from 64% in 2020 to 34% in 2021, the proportion of product sales of 100,000 yuan to 150,000 yuan increased from 25% to 44%, and the proportion of product sales of products above 150,000 yuan increased from 11% to 22%.
For this achievement, Geely Automobile Group CEO Gan Jiayue attributed that Geely Automobile has always adhered to the high-quality development of the brand with high-value products and comprehensively promoted modular structure car manufacturing. In 2022, the proportion of models built by Geely Automobile using modular architecture will increase to 70%, which indicates that the product matrix based on BMA, CMA, SPA and SEA Haohan architecture will be further enriched.
Among them, Geely Automobile's main sales force Geely brand will sell 1.101 million units in 2021, while the high-end product series China Star, which is based on the CMA architecture, sold more than 200,000 vehicles last year and the average price of products exceeded 150,000 yuan, accounting for about 18.2% of Geely brand sales. According to the plan, the sales share of the China Star series in the Geely brand will increase to more than 30% in 2022.
Lynk & Co's sales in 2021 were 220,500 units, which is also the first time that Lynk & Co has exceeded the threshold of 200,000 units, an increase of about 26% year-on-year. The increase in sales has also boosted the profitability of Lynk & Co, whose net profit rose from 510 million yuan in 2020 to 700 million yuan in 2021. At present, the average transaction price of Lynk & Co's products has reached 165,000 yuan.
In addition, Geely Automobile's krypton brand in the high-end new energy vehicle market has also begun to emerge and achieved a positive gross profit margin. Since its delivery in October last year, the cumulative delivery of the Krypton 001 based on the SEA Haohan architecture has exceeded 6,000 units last year. As of the end of February this year, The Company has delivered 12,453 vehicles, with an average order price of 335,000 yuan.
According to the plan, Extreme Krypton Automobile will hit the annual sales target of 70,000 vehicles this year. In this regard, An Conghui, chairman of Geely Automobile Group and CEO of Extreme Kr Intelligent Technology, said at the performance conference: "At present, the order of Extreme Kr 001 has exceeded our expectations, and the factory with an annual output of 300,000 units of Extreme Kr has also been tested and has the ability to mass produce, and we are confident of achieving the delivery target of 70,000 vehicles this year." ”
With the help of China Star Series, Lynk & Co AndKr Automobile and Extreme Krypton Automobile, Geely Automobile has achieved good results in high-end transformation. According to the data, the average price of Geely Automobile's bicycles in 2021 has increased to 88,000 yuan, an increase of 9% over the same period in 2020.
Fully develop the new energy market
Although Geely Automobile has become the champion of Chinese brand passenger cars for many consecutive years, its performance in the field of new energy vehicles has been unsatisfactory, and the penetration rate of new energy vehicles has been at a low level.
In 2021, Geely Automobile's sales of new energy and electrified models exceeded 100,000 units, an increase of 177.3% year-on-year, while the penetration rate of new energy vehicles was only about 7.5%, which is still quite a gap with the industry average (new energy penetration rate of 14.8%). The field of new energy will and must be the focus of Geely Automobile in the past two years.
In March last year, Geely Automobile released "two blue action plans" around electrification and intelligence: first, focusing on energy-saving and new energy vehicles, including hybrid vehicles, plug-in hybrid vehicles, extended-range plug-in hybrid vehicles, and small-displacement energy-saving vehicles; second, focusing on high-end pure electric intelligent vehicles.
Under the guidance of the "Two Blue Action Plans", Geely Automobile has established the high-end pure electric brand Extreme Kr Automobile and released the Lei Shen Zhi Qing Hi · The X hybrid platform, which covers a variety of hybrid technologies such as HEV, PHEV, and REEV, has laid a solid foundation for Geely to accelerate its transition to electrification.
Gan Jiayue said at the performance conference: "In 2022, Geely Automobile will fully accelerate the transformation and upgrading to new energy, including continuing to make efforts in the fields of pure electricity, Thor super hybrid and power exchange travel. At the same time, this year is also a big year for Geely's products, and 4 new products (including two Geely brand SUVs and two pure electric models) and 5 remodeled models will be launched. This means that Geely will accelerate the pace of new energy products in 2022 in order to seize more market share in the new energy vehicle market and increase its own new energy vehicle penetration rate.
Thanks to Ray's Mind Hi · With the blessing of the X hybrid platform, this year will be a year for Geely to fully exert its strength in the hybrid market. According to the plan, Geely Automobile will release 8 Models of Thor Hi · X oil-electric hybrid and super hybrid products, including 5 Raytheon super hybrid models and 3 Raytheon oil-electric hybrid models. In the next three years, Geely will launch more than 20 models equipped with the RayTheon Hybrid. In addition, Geely Automobile will also launch a alcohol-electric hybrid model this year.
In the field of pure electric vehicles, geometric brands will continue to focus on the popular mainstream electric vehicle market. In terms of products, in addition to the current geometry A, geometry C and EX3, the geometry brand will launch a new pure electric SUV this year - geometry E. In addition, Ruilan Automobile, a joint venture company established with Lifan Technology, will also launch 2 power-changing models this year.
At the same time, in addition to launching a sport-oriented new model of Krypton 001 this year, the high-end intelligent electric brand Extreme Krypton will also launch a pure electric MPV model. In the next three years, the Extreme Krypton brand will also launch 6 new models. An Conghui said: "We are unswerving in our sales target of 650,000 vehicles by 2025, and we will strive to achieve the goal of the top three in the world in terms of market share of the high-end electric vehicle industry, and this plan is also unswerving." ”
In addition to accelerating the pace of product launch, Geely Automobile also plans to comprehensively empower and upgrade the sales network with new energy this year, including opening up Geely's main dealer resources, concentrating superior resources, strengthening and expanding Geely's geometric pure electricity sales network, and increasing pure electricity coverage; at the same time, Raytheon Super Electric Hybrid will also fully empower Geely's main sales network G network and L network.
As the above new products continue to enter the market, Geely Automobile will build a product layout in terms of products where cars + SUVs, fuel + new energy, performance + energy saving coexist, so as to meet the different needs of consumers. In 2022, in addition to making efforts in the domestic auto market, Geely Automobile will further increase its efforts to develop overseas markets. Among them, geely brand will accelerate the development of new markets in Europe, Australia and New Zealand, South America and other new markets, Lynk & Co brand will continue to deepen the market in developed European regions and the Middle East market, and geometric brands will also enter the European and Southeast Asian markets.
In 2022, Geely will strive to hit the annual sales target of 1.65 million units.
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