Geely Automobile Holdings Ltd (HK.0175) (Geely Auto), the Hong Kong listed entity of Geely Auto Group, has released its 2023 Financial Results. The figures for the 12 months to December 31, 2023, show:
– Total annual sales volume reached 1,686,516 units, up 17.7% YoY
– Share of new energy and electrified vehicles reach 29%
– Revenue of 179 billion RMB, up 21% YoY
– Profit attributable to stockholders of 5.3 billion RMB, up 1% YoY
– Profit attributable to stockholders was up 51% YoY when excluding impact of one-off bargain purchase gain in 2022
– Diluted earnings per share reach RMB51, up 1% YoY
– Net cash flow rose to 28.4 billion, up 46% YoY
In 2023, the Group achieved new record highs in total sales, electrified vehicles, and export volumes. During a year in which the global automotive market experienced tremendous structural changes and saw opportunities in the development of electrification and intelligentization, the Group successfully exceeded its sales target of 1,650,000 units and improved its financial performance. The Group actively responded to market challenges and completed phased achievements in its electric and intelligent transformation. As of the end of 2023, the lifecycle carbon emissions per vehicle of the Group reduced by 12% (with 2020 as baseline) through the phased results of the Group’s electrification transformation and application of carbon reduction measures.
BRAND PERFORMANCE
GEELY AUTO
Geely Auto delivered a total of 1,309,580 million vehicles supported by the brand’s newly launched high-end electrified Yinhe product series. Released in March 2023, Yinhe has so far successfully launched two PHEVs and, one BEV model, and saw average monthly sales volume exceeding 10,000 units for six consecutive months. In 2024, the brand will further focus on its electrified Yinhe series while maintaining its leadership position in the ICE segment with its “Geely Star” product series.
LYNK & CO
Lynk & Co, the global premium joint venture brand, sold 220,250 vehicles in 2023. The brand deepened its focus on electrified vehicles with the introduction of its latest generation ultra-long-range EM-P hybrid models and plans for its first fully electric model. In 2024, the proportion of electrified vehicles as part of the brand’s monthly sales reached as high as 47%. Looking ahead, Lynk & Co plans to focus on enhancing profitability in Europe while also accelerating its expansion into Middle East and Asia-Pacific markets.
ZEEKR
Zeekr, Geely’s global electric mobility technology solutions brand continued to maintain its rapid growth with the successful launch of two new products, the Zeekr 009 and Zeekr X. In its second full year of sales, the brand sold 118,685 vehicles. The brand plans to cement its position and market share in the luxury smart electric vehicle segment with the future launch of three new products and accelerated entry into Europe, Middle East, and Asian markets.
ELECTRIFIED TRANSFORMATION
In 2023, the Group completed the foundation of its electrification transformation with the launch and planned launches of new BEV, PHEV, and HEV products. Sales of new energy and electrified vehicles (including Geely Auto, Lynk & Co, Zeekr) reached 487,461 units, an increase of 48% YoY. The proportion of new energy and electrified vehicle sales for the Group reached 29%, making the Group one of the leading electrified vehicle manufacturers in China.
SUSTAINABILITY REVIEW
Deepening its commitment to sustainable development, the Group formulated and implemented its environmental, social and governance (“ESG”) strategy in 2023. In terms of tackling carbon emissions and climate change, the Group has set a target of reducing lifecycle carbon emissions per vehicle by more than 25% by 2025. In addition to implementing sustainable development measures in its own operations, the Group is also promoting sustainable development in its upstream and downstream automotive value chain through closer collaboration with business partners as a way to build a sustainable and resilient future for the automotive industry. The Group’s sustainability performance has already been recognized by several well-regarded ESG rating agencies with Geely’s inclusion in the “Hang Seng Corporate Sustainability Index” and “AA” rating in the globally leading MSCI ESG Rating.
OVERSEAS EXPANSION
Overseas export sales for the Group reached 274,101 units, an increase of 38% YoY. In 2023, the Group brands accelerated their expansions in several important overseas markets. With the establishment of overseas subsidiaries in Mexico, Geely Auto and Zeekr deepened the Group’s presence in Latin America. Enhancing the diversity of the Group’s product offerings in higher value segments, Lynk & Co and Zeekr increased the pace of their expansions in Middle East and Asia markets. In addition, the Group’s brands have begun making forays into new right-hand drive markets. In 2024, the Group will strengthen its technology output with the launch of more advanced smart models in overseas markets and launch of new products from the Group’s Renault Korea joint venture.
