Geely Automobile (175) H1 2024 earnings summary

Executive summary

• Achieved record sales volume of 955,730 units in H1 2024, up 41% year-over-year, with strong growth in both domestic and export markets and both ICE and NEV segments reaching record highs.

• Total revenue rose 47% year-over-year to RMB 107.3 billion, outpacing sales volume growth due to higher average selling prices and improved product mix, surpassing RMB 100 billion for the first time in a half-year period.

• Profit attributable to equity holders surged 575% year-over-year to RMB 10.60 billion, driven by a one-off gain from the Horse Powertrain transaction and robust core operations.

• Adjusted profit (excluding extraordinary items) increased 114% year-over-year to RMB 3.37 billion.

• ZEEKR completed a successful IPO on the NYSE, raising US$480.9 million, and remains a non-wholly-owned subsidiary.

Financial highlights

• Gross profit margin improved by 0.7 percentage points year-over-year to 15.1%, with gross profit up 53.9% to RMB 16.22 billion.

• Diluted earnings per share rose 604% year-over-year to RMB 1.04.

• Net cash from operating activities reached RMB 14.2 billion, with total cash and restricted deposits at RMB 44.4 billion, up 17% from year-end 2023.

• Total borrowings decreased by 13% to RMB 5.3 billion; net cash position increased 25% to RMB 35.7 billion.

• Gearing ratio decreased to 5.9% (from 7.6% at end-2023); current ratio at 1.05.

Outlook and guidance

• Annual sales target raised from 1.9 million to 2 million units, reflecting management's confidence in continued growth.

• NEV sales volume target for the year is up 70% year-over-year; export sales volume target up 45%.

• Plans to launch multiple new NEV and ICE models in H2 2024 across all major brands.

• Focus on cost reduction, product competitiveness, global expansion, and autonomous driving technology rollout to mitigate risks from price wars and trade barriers.