Geely Automobile (175) Q4 2025 earnings summary

Executive summary

• Achieved record sales volume of 3.025 million units in 2025, up 39% year-over-year, with NEVs comprising up to 56% of total sales and market share in China exceeding 10%.

• Revenue reached RMB 345.2 billion, a 25% increase year-over-year, with net profit up 2% to RMB16.63 billion and core profit attributable to owners at RMB14.41 billion.

• Zeekr, Lynk & Co, Galaxy, and China Star brands all posted strong growth, with Zeekr and Galaxy leading in luxury and mainstream NEV segments.

• Completed strategic integration and privatization of Zeekr and Lynk & Co, enhancing operational efficiency and brand synergy.

• Maintained four consecutive years of growth, driven by strong performance across ICEV, PHEV, and BEV segments.

Financial highlights

• Gross margin improved to 16.9% in Q4 2025, with full-year gross margin at 16.6%, and gross profit up 25% to RMB57.35 billion.

• EBIT increased 60.5% year-over-year to RMB15.87 billion; profit after tax rose 1.7% to RMB16.63 billion.

• Net cash at year-end was RMB49.9 billion, up 28% year-over-year; operating cash flow reached RMB47.3 billion.

• R&D expenses increased 29% to RMB17.62 billion, with R&D expense ratio at 36% in 2025 and targeted at 40% for 2026.

• Proposed final dividend of HK$0.50 per share, with total dividend estimated at HKD 5.39 billion.

Outlook and guidance

• 2026 sales target set at 3.45 million units (+14% YoY), aiming for number one in China’s passenger vehicle market.

• Zeekr targets 300,000 units (+34% YoY), Lynk & Co 400,000 units (+14% YoY), Galaxy 1.55 million units (+25% YoY), and China Star 1.2 million units.

• Export target for 2026 is 640,000 units (+52% YoY), with expansion in Europe, ASEAN, LATAM, Africa, and Middle East.

• Continued focus on AI, intelligent driving, and global expansion, with new models and technology rollouts planned.

• Budgeted capital expenditures for 2026 are RMB16 billion, mainly for R&D and production upgrades.