Group 1 - The core viewpoint of the article highlights the strong performance of Geely Automobile in H1 2025, with total sales reaching 1.409 million units, a year-on-year increase of 47.4%, and total revenue of 150.28 billion yuan, up 26.5% year-on-year [1] - In Q2 2025, Geely's total sales were 705,000 units, reflecting a year-on-year growth of 47.0% and a quarter-on-quarter increase of 0.2%, with total revenue of 77.79 billion yuan, up 28.4% year-on-year and 7.3% quarter-on-quarter [1] - The significant increase in sales, particularly in the new energy vehicle segment, which saw sales of 386,000 units, a year-on-year increase of 119.2%, contributed to the revenue growth [1] Group 2 - The gross margin for Q2 2025 was reported at 17.1%, showing a year-on-year decrease of 0.7 percentage points but a quarter-on-quarter increase of 1.3 percentage points, primarily due to structural changes in export and product mix [2] - The company has seen a reduction in expense ratios, with sales, administrative, and R&D expense ratios at 6.1%, 1.9%, and 5.1% respectively, indicating a significant decrease year-on-year [2] - Geely plans to privatize Zeekr, proposing to acquire each share at $2.566, which is expected to enhance operational efficiency and brand competitiveness in the luxury electric vehicle market [3] Group 3 - Geely's revenue projections for 2025-2027 are estimated at 404.78 billion yuan, 489.69 billion yuan, and 572.83 billion yuan respectively, with net profits expected to be 16.21 billion yuan, 22.09 billion yuan, and 25.97 billion yuan [3] - The earnings per share (EPS) forecasts for the same period are 1.61 yuan, 2.19 yuan, and 2.58 yuan, corresponding to a price-to-earnings (PE) ratio of 11, 8, and 7 times based on the closing price of 19.24 HKD on August 15 [3]

Core Viewpoint - The report indicates a significant growth in the operating performance of Geely Automobile in the first half of 2025, with optimistic expectations for annual sales and performance due to the launch of several key models in the second half of the year [1][2] Group 1: Financial Performance - In the first half of 2025, Geely Automobile achieved sales of 1.409 million vehicles, representing a year-on-year increase of 47% [2] - Revenue for the same period reached 150.3 billion yuan, a year-on-year growth of 27% [1] - The core net profit attributable to shareholders was 6.66 billion yuan, showing a remarkable year-on-year increase of 102% [1] Group 2: Sales Breakdown - Of the total sales, 725,000 units were new energy vehicles, including 511,000 pure electric vehicles and 214,000 plug-in hybrids, with respective year-on-year growth rates of 173% and 61% [2] - By brand, Geely brand sold 1.164 million units (up 57%), Lynk & Co sold 154,000 units (up 22%), and Zeekr sold 91,000 units (up 3%) [2] - Overseas exports totaled 184,000 units, reflecting an 8% decline year-on-year [2] Group 3: Future Outlook - The company aims for a total sales target of 3 million vehicles for the year 2025 [2] - Several new models, including Geely Galaxy A7, M9, and others, are set to launch in the second half of 2025, which is expected to support the sales target [2] - The global expansion of Geely, Zeekr, and Lynk & Co brands is accelerating, contributing to the overall sales growth strategy [2] Group 4: Profitability Projections - The projected net profit attributable to shareholders for 2025-2027 is estimated at 16.3 billion yuan, 18.2 billion yuan, and 23.7 billion yuan respectively, with corresponding EPS of 1.62 yuan, 1.81 yuan, and 2.35 yuan [1] - A target price of 29.43 HKD is set for 2025, based on a PE ratio of 16.6 times [1]

Investment Rating - The report maintains a "Buy" rating for Geely Automobile [6] Core Views - Geely Automobile's H1 2025 performance is impressive, with total sales reaching 1.409 million units, a year-on-year increase of 47.4%. Total revenue amounted to 150.28 billion RMB, up 26.5% year-on-year, while net profit attributable to shareholders was 9.29 billion RMB, down 13.9% year-on-year [1][2] - The company benefits from a significant increase in sales, particularly in the new energy vehicle segment, which saw sales of 386,000 units in Q2 2025, a year-on-year increase of 119.2% [2] - Geely plans to privatize Zeekr, which will help consolidate resources and improve operational efficiency [4] Summary by Sections Financial Performance - In Q2 2025, Geely's revenue was 77.79 billion RMB, a year-on-year increase of 28.4% and a quarter-on-quarter increase of 7.3%. The average selling price (ASP) per vehicle was estimated at 110,000 RMB, reflecting a year-on-year decline [2] - The gross margin for Q2 2025 was 17.1%, showing a quarter-on-quarter increase of 1.3 percentage points, while the year-on-year decrease of 0.7 percentage points was attributed to changes in export structure and product mix [3] - The net profit for Q2 2025 was 3.62 billion RMB, with Zeekr reporting a net loss of 580 million RMB [3] Future Projections - Revenue projections for Geely from 2025 to 2027 are 404.78 billion RMB, 489.69 billion RMB, and 572.83 billion RMB, respectively. Net profit estimates for the same period are 16.21 billion RMB, 22.09 billion RMB, and 25.97 billion RMB [4][5] - The report anticipates an EPS of 1.61 RMB, 2.19 RMB, and 2.58 RMB for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 11, 8, and 7 [5] Strategic Initiatives - The proposed privatization of Zeekr aims to enhance Geely's brand and competitiveness in the luxury electric vehicle market, facilitating better integration of assets and resources [4] - The report emphasizes the upward momentum of Geely's new energy brand and accelerating profitability [4]

Core Insights - Geely Automobile has reported impressive performance in the first half of the year despite increasing industry competition [1][2] Financial Performance - Geely achieved a record revenue of 150.285 billion yuan in the first half of the year, a year-on-year increase of 27%, with vehicle revenue reaching 134.6 billion yuan, up 28% [3] - The company sold 1.4092 million vehicles, marking a 47% increase year-on-year, with fuel vehicle sales at 684,000 units (up 8 percentage points) and new energy vehicle sales at 725,000 units (up 126%) [4] - The gross profit margin remained stable at 16.4%, slightly down from 16.7% year-on-year, attributed to uneven growth rates of different products [7] - The net profit attributable to shareholders reached 9.29 billion yuan, with core net profit at 6.66 billion yuan, a significant increase of 102% year-on-year [9] Strategic Developments - The "One Geely" strategy has been pivotal in enhancing internal resource integration and overall competitiveness [10] - Geely is accelerating the integration of its brands, with Zeekr and Lynk & Co forming a dual-driven growth model in the high-end luxury market [4][11] - The company plans to acquire the remaining shares of Zeekr, with the transaction expected to cost less than 30% of 2.4 billion USD, supported by cash reserves [11] Market Expansion - Geely aims to increase its annual sales target from 2.71 million to 3 million units, reflecting an 11% upward adjustment [6] - The company is focusing on international market expansion, with a goal to increase export sales by 30% in the second half of the year [13][16] - Geely's export sales in the first half were 184,000 units, showing a decline, primarily due to a significant drop in the Eastern European market [13][16]

Core Insights - Geely Automobile reported a record revenue of 150.3 billion yuan for the first half of 2025, marking a significant year-on-year increase of 27% [1] - The company's net profit attributable to shareholders reached 9.29 billion yuan, with core net profit growing by 102% to 6.66 billion yuan after excluding non-core losses [1] Financial Performance - Total revenue for the first half of 2025 was 150.3 billion yuan, a historical high [1] - Net profit attributable to shareholders was 9.29 billion yuan, with core net profit at 6.66 billion yuan, reflecting a 102% increase year-on-year [1] - Gross profit margin improved to 16.4%, with total gross profit rising to 24.7 billion yuan [11] Sales and Market Position - Geely's total sales reached nearly 1.41 million units in the first half of 2025, a 47% increase year-on-year, with a market share exceeding 10% for the first time [5] - The company raised its annual sales target from 2.71 million to 3 million units, an increase of approximately 11% [5] - Cumulative sales of new energy vehicles reached 725,000 units, a 126% increase year-on-year [5] Strategic Integration - The term "integration" encapsulates Geely's strategy for the first half of 2025, highlighting the successful merger of Zeekr and Lynk & Co, which resulted in a 14.5% increase in combined sales to 245,000 units [6][7] - The strategic integration has led to significant operational efficiencies, with a decrease in R&D expense ratio by 5.8 percentage points to 7.8% and a reduction in selling and administrative expense ratio by 1.2 percentage points to 12.3% [7][11] Future Outlook - Geely plans to further enhance its competitive edge in the smart new energy sector through the formal merger with Zeekr, expected to be completed within the year [12] - The company aims to cover all powertrain forms, including fuel, pure electric, hybrid, and alcohol-hydrogen, while expanding its presence in mainstream, mid-to-high-end, and luxury markets [12] - The launch of new models is set to support the achievement of the 3 million sales target, with multiple new energy products scheduled for release in the second half of 2025 [18]

Core Insights - Geely Automobile Holdings Limited reported a record high revenue of 150.3 billion yuan for the first half of 2025, representing a 27% year-on-year increase, with a net profit attributable to shareholders of 9.29 billion yuan, and a core profit of 6.66 billion yuan, up 102% year-on-year [1] - The company achieved a total sales volume of 1.409 million vehicles in the first half of the year, a 47% increase, with a market share surpassing 10% for the first time [1] - Geely has raised its annual sales target from 2.71 million to 3 million vehicles based on better-than-expected market performance [1] Group 1: Financial Performance - The total gross profit increased to 24.7 billion yuan, with a gross margin of 16.4% [1] - Total cash levels rose to 58.8 billion yuan [1] Group 2: New Energy Vehicle Growth - Geely's new energy vehicle sales reached 725,000 units in the first half of the year, with a penetration rate of 51.5%, maintaining a leading position among new energy brands [3] - The Galaxy series, now an independent brand, saw sales of 548,000 units, a 232% increase year-on-year [3] - Zeekr and Lynk & Co formed a "dual-wheel drive" structure in the high-end luxury market, with Zeekr achieving sales of 90,740 units and Lynk & Co selling 154,137 units in the first half [3] Group 3: International Expansion - Geely's international export sales reached 184,000 units in the first half, a decrease of 7.7% year-on-year, contrasting with the industry growth of 10.3% [4] - The company has established a global sales network covering 85 countries and regions, with the Galaxy E5 international version becoming a global star product [4] - Geely plans to launch five new energy products in the second half of the year to support its sales target of 3 million vehicles [4]

Investment Rating - The investment rating for Geely Automobile is "Buy" (maintained) [1] Core Views - The Q2 performance of Geely Automobile met expectations, with a strong new vehicle cycle [1] - The company has adjusted its annual sales target to 3 million units due to strong performance in the first half of the year [8] - New models are set to launch, including the Galaxy A7 and several other new energy vehicles, which are expected to improve average selling price (ASP) [8] Financial Summary - Total revenue for Q2 was 77.79 billion yuan, with a year-on-year increase of 28.4% and a quarter-on-quarter increase of 7.3% [8] - Net profit for Q2 was 3.62 billion yuan, showing a year-on-year decrease of 60.0% and a quarter-on-quarter decrease of 36.2% [8] - The company achieved total sales of 705,000 units in Q2, with a year-on-year increase of 46.9% [8] - The ASP for vehicles was 110,000 yuan, with a year-on-year decrease of 12.6% [8] - Gross margin for Q2 was 17.1%, with a year-on-year decrease of 0.7 percentage points [8] - The company expects to achieve net profits of 15 billion yuan, 22.1 billion yuan, and 29.5 billion yuan for 2025, 2026, and 2027 respectively [8] Earnings Forecast and Valuation - The earnings per share (EPS) for 2023, 2024, 2025, 2026, and 2027 are projected to be 0.53 yuan, 1.65 yuan, 1.49 yuan, 2.20 yuan, and 2.93 yuan respectively [1] - The price-to-earnings (P/E) ratios for the same years are projected to be 33.26, 10.62, 11.79, 7.98, and 5.98 respectively [1] - The company’s total revenue is expected to grow from 179.85 billion yuan in 2023 to 511.66 billion yuan in 2027, reflecting a compound annual growth rate (CAGR) of approximately 16.15% [1]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown significant growth in operating performance in the first half of 2025, with optimistic expectations for annual sales and performance due to the launch of several key models in the second half of the year [2] Financial Summary - Total revenue for 2025 is projected to be 179,204 million RMB, with a year-on-year growth of 34.0% [11] - Gross profit is expected to reach 51,810 million RMB in 2025, with a stable gross margin of 16.4% [12] - The net profit for 2025 is estimated at 16,299 million RMB, reflecting a slight decrease of 1% compared to the previous year [11] - The company aims for total sales of 3 million vehicles in 2025, supported by the launch of multiple new models [12] Sales Performance - In the first half of 2025, the company sold 1.409 million vehicles, a year-on-year increase of 47% [12] - New energy vehicle sales reached 725,000 units, with pure electric vehicles at 511,000 units and plug-in hybrids at 214,000 units, marking increases of 173% and 61% respectively [12] - The company’s brands showed strong performance, with the Geely brand selling 1.164 million units (up 57%), Lynk & Co selling 154,000 units (up 22%), and Zeekr selling 91,000 units (up 3%) [12] Valuation - The target price for the company is set at 29.43 HKD, based on a PE ratio of 16.6 times for 2025 [12] - The company’s current market capitalization is approximately 191,105 million HKD [7]

(Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立之有限公司 (Stock codes 股份代號: 175 (HKD counter港幣櫃台) & 80175 (RMB counter人民幣櫃台)) Should you have any queries in relation to this letter, please call the Hong Kong Share Registrar at (852) 2849 3399 during business hours from 9:00 a.m. to 5:00 p.m., Monday to Friday, excluding Hong Kong public holidays. By order of the Board of Geely Automobile Holdings Limited David C.Y. Cheung Company Secretary Note: Corporate Communication(s) refer to any do ...

(Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立之有限公司 ) (Stock codes 股份代號: 175 (HKD counter港幣櫃台) & 80175 (RMB counter人民幣櫃台)) NOTIFICATION LETTER 通知信函 Notes: 各位非登記股東 （附註 Dear Non-registered Shareholder(s) (Note 1) , 18 August 2025 The following document(s) of Geely Automobile Holdings Limited (the "Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at http://www.geelyauto.com.hk and The Stock Exchange of Hong Kong Limited at http ...