Geely Auto 2023 Financial Results Unveiled

Geely Automobile Holdings Ltd (HK.0175) (Geely Auto), the Hong Kong-listed entity of Geely Auto Group, has officially disclosed its 2023 Financial Results. These figures, covering the 12-month period ending December 31, 2023, reveal:

• Total annual sales volume reached an impressive 1,686,516 units, marking a substantial increase of 17.7% year-over-year (YoY).
• The share of new energy and electrified vehicles surged to 29%.
• Revenue soared to 179 billion RMB, up by a substantial 21% YoY.
• Profit attributable to stockholders amounted to 5.3 billion RMB, reflecting a modest increase of 1% YoY.
• Excluding the impact of a one-off bargain purchase gain in 2022, profit attributable to stockholders surged by an impressive 51% YoY.
• Diluted earnings per share reached RMB51, up by 1% YoY.
• Net cash flow rose significantly to 28.4 billion, up by a remarkable 46% YoY.

Throughout 2023, Geely Auto Group achieved record-high total sales, particularly in electrified vehicles and export volumes. Amidst a year characterized by significant structural shifts in the global automotive market, the Group surpassed its sales target of 1,650,000 units. It also showcased improved financial performance, responding adeptly to market challenges while advancing its electric and intelligent transformation initiatives. By the end of 2023, the Group achieved a 12% reduction in lifecycle carbon emissions per vehicle (with 2020 as a baseline), owing to the phased outcomes of its electrification transformation and the application of carbon reduction measures.

Brand Performance

Geely Auto: Geely Auto delivered a total of 1,309,580 vehicles, supported by the brand’s newly launched high-end electrified Yinhe product series. The Yinhe series, introduced in March 2023, includes two PHEVs and one BEV model. Monthly sales of the Yinhe series consistently exceeded 10,000 units for six consecutive months. In 2024, the brand will prioritize the electrified Yinhe series while maintaining its leadership in the ICE segment with the “Geely Star” product series.

Lynk & Co: Lynk & Co, the global premium joint venture brand, sold 220,250 vehicles in 2023. The brand intensified its focus on electrified vehicles with the introduction of its latest generation ultra-long-range EM-P hybrid models and plans for its inaugural fully electric model. By 2024, the proportion of electrified vehicles in the brand’s monthly sales is expected to reach as high as 47%. Lynk & Co aims to enhance profitability in Europe while accelerating its expansion into the Middle East and Asia-Pacific markets.

Zeekr: Zeekr, Geely’s global electric mobility technology solutions brand, sustained 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. Zeekr aims to solidify its position and market share in the luxury smart electric vehicle segment with the forthcoming launch of three new products and accelerated entry into European, Middle Eastern, and Asian markets.

Electrified Transformation

In 2023, the Group laid the groundwork for its electrification transformation with the launch and planned releases of new BEV, PHEV, and HEV products. Sales of new energy and electrified vehicles (including Geely Auto, Lynk & Co, Zeekr) surged by 48% YoY, reaching 487,461 units. The proportion of new energy and electrified vehicle sales for the Group reached an impressive 29%, positioning the Group as 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. The Group aims to reduce lifecycle carbon emissions per vehicle by over 25% by 2025. Additionally, the Group promotes sustainable development in its automotive value chain through collaboration with business partners, earning recognition from esteemed ESG rating agencies such as inclusion in the “Hang Seng Corporate Sustainability Index” and an “AA” rating in the MSCI ESG Rating.

Overseas Expansion

Overseas export sales surged by 38% YoY, reaching 274,101 units in 2023. The Group’s brands accelerated expansions in key overseas markets, establishing subsidiaries in Mexico and deepening its presence in Latin America. Lynk & Co and Zeekr expanded into the Middle East and Asia markets, with plans to penetrate new right-hand drive markets. In 2024, the Group will bolster its technology output with the launch of advanced smart models in overseas markets and introduce new products from the Renault Korea joint venture.

About Geely Auto Group

Geely Auto Group, founded in 1997 as a subsidiary unit of Zhejiang Geely Holding Group (ZGH), is a leading automobile manufacturer based in Hangzhou, China. Managing several renowned brands including Geely Auto, Lynk & Co, and Zeekr, Geely Auto Group is committed to developing world-renowned automotive and mobility technology brands that provide high-quality products to meet diverse consumer demands.

With over 50,000 employees, 12 plants, five global R&D centers, and four global design studios, Geely Auto Group is dedicated to delivering innovative and sustainable mobility solutions. Geely Automobile Holdings, a subsidiary holding controlling stakes in Geely Auto, Lynk & Co, and Zeekr, has been listed on the Hong Kong stock exchange since 2005.

In 2023, Geely Auto Group sold over 1.68 million units, with new energy vehicle sales surging by 48.3%, and exports growing by 38%.

The controlling shareholder in Geely Auto is Zhejiang Geely Holding Group (ZGH), parent company of Volvo Car Group, Geely Commercial Vehicles Group, Geely New Technology Group, and Mitime Group. Zhejiang Geely Holding Group is committed to advancing the development of world-renowned automotive and mobility technology brands, providing high-quality products across multiple market segments to meet diverse consumer demands.