Geely Automobile (175) Q2 2025 earnings summary

Executive summary

• Achieved record-high total sales volume of 1,409,180 units in H1 2025, up 47% year-over-year, with NEV sales surging 126% to 725,151 units, representing 51.5% of total sales and surpassing 10% market share for the first time.

• Revenue rose 27% year-over-year to RMB150.3 billion, driven by strong NEV and ICE vehicle sales, though average selling price per vehicle declined due to higher NEV mix and price competition.

• Profit attributable to equity holders fell 14% year-over-year to RMB9.29 billion, mainly due to the absence of prior-year one-off gains and higher tax expense; adjusted profit excluding non-recurring items rose 102% year-over-year to RMB6.66 billion.

• NEV penetration reached 51.5% domestically, exceeding industry levels.

• Annual sales target raised from 2.71 million to 3 million units after achieving 52% of the original target in H1, reflecting management’s confidence in future growth.

Financial highlights

• Gross profit margin remained stable at 16.4%, down 0.3 percentage points year-over-year despite intense market competition.

• EBIT increased 118.6% year-over-year to RMB7.6 billion.

• Net cash from operating activities was RMB15.0 billion; total capital expenditures reached RMB8.0 billion, mainly for R&D and new product development.

• Total borrowings increased 162% to RMB19.9 billion, while net cash position was RMB38.9 billion.

• Diluted EPS was RMB0.90; excluding one-off items, adjusted profit attributable to equity holders rose 102% year-over-year to RMB6.66 billion.

Outlook and guidance

• Annual sales volume target increased from 2.71 million to 3.0 million units, with continued focus on electrification, intelligentization, and global expansion.

• Multiple new NEV and ICE models set to launch in H2 2025, including Galaxy A7, M9, Xingyao 6, ZEEKR 9X, and Lynk & Co 10 EM-P.

• Plans to acquire all outstanding ZEEKR shares to enhance synergies and competitiveness in the smart EV sector.

• Ongoing investment in AI, R&D, and new product launches across all brands.

• Accelerated globalization with entry into new markets such as Brazil, UK, Italy, Poland, South Africa, Switzerland, Denmark, Belgium, Czechia, and Austria.