Geely Automobile ((HK:0175)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Geely Automotive’s recent earnings call painted a picture of robust growth and strategic advancements, particularly in the New Energy Vehicle (NEV) sector. The company showcased impressive sales volume, revenue, and profit growth, driven by technological innovations and strategic brand integrations. Despite facing challenges such as a decline in export volume and slight reductions in gross margin, the overall sentiment was positive, with a strong future outlook.
Record Sales Volume and Market Share Growth
Geely Automotive reported a record-breaking sales volume of approximately 1.409 million units in the first half of 2025, marking a 47% year-over-year increase. This growth significantly outpaced the industry average of 13%, allowing Geely to capture a market share of 10.4%, a notable rise of 2.4 percentage points compared to the previous year.
Revenue and Profit Growth
The company’s financial performance was equally impressive, with sales revenue reaching CNY150.3 billion, a 27% increase year-over-year. Core net profit attributable to the parent company soared by 102% to CNY6.66 billion, underscoring the company’s strong profitability.
NEV and Export Performance
Geely’s NEV segment demonstrated remarkable growth, with sales hitting 725,000 units, a 126% increase year-over-year. NEV exports also surged by 146%, totaling 40,000 units, reflecting the company’s expanding global footprint in the electric vehicle market.
Galaxy Brand Growth
The Galaxy brand experienced explosive growth, with sales reaching 548,000 units, a staggering 232% increase year-over-year. This growth highlights the brand’s increasing popularity and market acceptance.
Technological Advancements
Geely continued to innovate with the introduction of new AI technologies and hybrid systems, including the Thor EM-i AI hybrid system, which boasts a thermal efficiency of 47.26%. These advancements are set to enhance the company’s competitive edge in the automotive industry.
Strategic Integration and Global Expansion
The company successfully completed the strategic integration of its Zeekr and Lynk & Co brands and expanded into new international markets, including Brazil, the UK, Italy, and Switzerland, positioning itself for further global growth.
Decline in Export Volume
Despite overall growth, Geely faced a decline in total export volume, which fell by 8% year-over-year. This was primarily due to reduced sales in the Eastern European market, highlighting a key area for improvement.
Slight Decline in Gross Margin
Geely’s gross margin remained stable at 16.4%, though it experienced a slight decline of 0.3 percentage points compared to the first period of the year, indicating potential challenges in maintaining profit margins across different product segments.
Brand Recognition Challenges
The company acknowledged the need for improvement in brand building and customer experience, emphasizing the importance of creating emotional connections with customers and enhancing driving experiences.
Forward-Looking Guidance
Looking ahead, Geely plans to launch several new NEV models and expand its international presence, aiming for a sales target of 3 million units for the year. The company also reported a strong cash flow of CNY58.8 billion and plans to continue optimizing resource utilization, despite a slight decrease in R&D investment.
In conclusion, Geely Automotive’s earnings call highlighted a period of significant growth and strategic advancements, with a positive outlook for the future. While challenges such as declining export volumes and brand recognition remain, the company’s strong performance in sales, revenue, and technological innovation positions it well for continued success.