Core Viewpoint - The report from CICC maintains the profit forecast for Geely Automobile (00175) for 2025 and 2026, with a target price of HKD 26.00, indicating a potential upside of 37.2% from the current stock price [1] Group 1: Sales and Revenue Growth - In 1H25, total sales increased by 47% year-on-year to 1.409 million units, driving total revenue up by 40% to CNY 150.29 billion [2] - The sales of new energy vehicles surged by 126% year-on-year to 725,000 units, accounting for 51.5% of total sales, with the Galaxy brand sales increasing by 232% to 548,000 units [2] - Exports of new energy vehicles also performed well, rising by 146% year-on-year to 40,000 units [2] - The company plans to launch six new models in the second half of the year, aiming to exceed total sales of 3 million units for the year [2] Group 2: Profitability and R&D Investment - The gross profit margin in 1H25 was 16.4%, with the profitability of GEA architecture models offsetting some pricing pressures [3] - Lean management led to a reduction in sales and management expense ratios by 1.1 percentage points and 0.7 percentage points year-on-year to 5.6% and 1.9%, respectively [3] - R&D investment increased by 21.3% year-on-year to CNY 7.33 billion, focusing on advanced driving assistance systems and new architecture development [3] - Core operating profit in 1H25, excluding foreign exchange and last year's one-time subsidiary sale impacts, rose by 102% year-on-year to CNY 6.66 billion, indicating a trend of profit recovery [3] Group 3: Strategic Reconfiguration and Globalization - The company is accelerating the implementation of the "One Geely" strategy to achieve resource synergy across multiple brands [4] - In terms of globalization, the company invested in Renault Brazil to leverage its established production system and distribution network for entry into the Latin American market; the Egypt factory has commenced production, and the Indonesia base has started trial production to enhance local supply chain capabilities [4] - The product strategy focuses on comprehensive intelligence, with plans to launch new models equipped with advanced driving solutions, covering the market from entry-level to luxury segments [4]

Core Insights - Geely Automobile reported a record high revenue of 150.3 billion yuan for the first half of 2025, a year-on-year increase of 27% [1] - The company achieved a net profit attributable to shareholders of 9.29 billion yuan, with core net profit rising by 102% to 6.66 billion yuan after excluding non-core losses [1] - Total cash levels increased to 58.8 billion yuan, indicating strong financial health [1] Sales Performance - Geely's total sales reached 1.409 million units in the first half of 2025, a 47% year-on-year growth, surpassing the market average [1] - New energy vehicle (NEV) sales were particularly strong, totaling 725,000 units, representing a 126% increase [2] - The company has raised its full-year sales target from 2.71 million to 3 million units based on strong market performance [2] Brand Development - The Galaxy series, now an independent brand, sold 548,000 units in the first half, marking a 232% increase [2] - Zeekr and Lynk & Co brands contributed significantly to brand value, with Zeekr achieving sales of 90,740 units and Lynk & Co selling 154,137 units [2] - Lynk & Co's three-year resale value rate reached 54.58%, with nine models ranking in the top ten of their segments [2] International Expansion - Geely's export sales exceeded 180,000 units, with a global sales network covering 85 countries and regions [3] - The Galaxy E5 international version EX5 became a global star product, launched in 26 countries [3] - The company is enhancing its localization capabilities with new factories in Egypt and Indonesia [3] Future Outlook - Geely plans to launch five new NEV products in the second half of 2025, aiming to strengthen its global competitiveness in the smart NEV sector [3] - The "One Geely" strategy is expected to enhance synergies and support the company in achieving its revised sales target of 3 million units [3]

Core Viewpoint - Geely Automobile reported a strong performance in the first half of 2023, with significant growth in revenue and a notable increase in core profit, despite a decline in net profit attributable to shareholders [1][2][4]. Financial Performance - Geely's revenue exceeded 150 billion yuan, reaching 150.3 billion yuan, a year-on-year increase of 27% [1]. - The net profit attributable to shareholders was 9.29 billion yuan, down 14% year-on-year [1]. - Core net profit, excluding foreign exchange gains and losses, was 6.66 billion yuan, up 102% year-on-year [1]. - Gross profit increased to 24.7 billion yuan, with a gross margin of 16.4% [1]. - Total cash level rose to 58.8 billion yuan [1]. Sales Performance - Geely sold 1.409 million vehicles in the first half of the year, a 47% increase, with a market share surpassing 10% for the first time [2][4]. - New energy vehicle (NEV) sales surged to approximately 725,000 units, a 126% increase, with a domestic market penetration rate of 51% [2][4]. - The Galaxy series performed exceptionally well, with sales of about 548,000 units, up 232% [4]. - The company adjusted its annual sales target from 2.71 million to 3 million units, achieving 54.9% of the new target by the end of July [4]. Strategic Developments - Geely is advancing its "Return to One Geely" strategy, focusing on resource integration and operational efficiency, resulting in a decrease in sales and administrative expense ratios by 16% and 26%, respectively [5][9]. - The merger between Zeekr and Lynk & Co is expected to enhance financial performance and operational synergies, with Zeekr achieving operational profit for the first time in Q2 [5][9]. - The merger aims to strengthen Geely's competitiveness in the smart new energy sector, covering various powertrain forms and market segments [9][10]. Challenges and Areas for Improvement - Geely faces challenges in overseas markets, with export sales declining by 8% to over 180,000 units, despite a 146% increase in NEV exports [11][12]. - The average sales revenue per vehicle decreased by 1.4 million yuan to 96,000 yuan, and the gross margin slightly fell by 0.3 percentage points to 16.4% [13]. - Brand building remains a challenge, with a need for improved user experience and customer engagement [14].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported strong revenue performance with a significant increase in sales driven by a new vehicle cycle, leading to a projected rapid growth in sales [1][7] - The company has adjusted its annual sales target from 2.71 million units to 3 million units due to strong sales momentum [7] Financial Summary - For the first half of 2025, the company achieved a revenue of 150.28 billion RMB, a year-on-year increase of 39%, while net profit was 9.29 billion RMB, a decrease of 14% [7] - The second quarter of 2025 saw revenues of 77.79 billion RMB, up 41.6% year-on-year and 7.3% quarter-on-quarter, with net profit at 3.62 billion RMB, down 60% year-on-year [7] - The company plans to launch 10 new models in 2025, focusing on mid-sized sedans and SUVs to capture market trends [7] - The company’s core net profit for the first half of 2025, excluding one-off gains, was 6.66 billion RMB, reflecting a 102% year-on-year increase [7] Sales Performance - The company sold 1.409 million vehicles in the first half of 2025, a 47% increase year-on-year, with a market share exceeding 10% [7] - New energy vehicle sales reached 725,000 units, representing a 126% year-on-year increase, with a penetration rate of 51.5% [7] Profit Forecast and Investment Recommendation - The company is expected to have a compound annual growth rate (CAGR) of 11.4% in net profit from 2025 to 2027 [7] - The report maintains a "Buy" rating based on the company's leading position in the domestic automotive market and the anticipated continuous growth in performance due to new product launches [7]

Core Viewpoint - Geely Automobile's management emphasizes the importance of responding to the national call against "involution," which includes avoiding price wars and focusing on learning from competitors while improving their own operations [1] Group 1: Company Performance - Geely's gross margin has declined in the first half of the year, primarily due to price wars that have pressured all automakers [1] - The company anticipates that the launch of high-value models in the second half of the year, along with government efforts to regulate the automotive market, will lead to significant improvements in gross margin [1]

Core Viewpoint - Geely Automobile reported a total vehicle delivery of 130,866 units in the second quarter, reflecting a year-on-year increase of 9.3% and a quarter-on-quarter increase of 14.8% [1] Delivery Performance - The Zeekr brand delivered 49,337 vehicles [1] - The Lynk & Co brand delivered 81,529 vehicles, with 58.8% of deliveries coming from new energy vehicles [1]

Core Insights - Geely Automobile reported a strong sales growth in the first half of the year, with a significant increase in core net profit attributable to shareholders, which rose by 102% year-on-year to 6.66 billion yuan [1] - The company achieved a rapid increase in core net profit margin, driven by improved profitability per vehicle [1] - The launch of the Galaxy E5 in August 2024 has positively impacted the performance of the Galaxy brand, marking the beginning of a comprehensive profitability cycle for new energy vehicles [1] Financial Performance - Core net profit attributable to shareholders reached 6.66 billion yuan, reflecting a year-on-year growth of 102% [1] - The core net profit per vehicle increased by 37% year-on-year, while the core net profit margin saw a rise of 57% [1] - The company experienced a significant reduction in expense ratio, contributing to the overall improvement in profitability [1]

Core Insights - Geely Automobile (00175) reported unaudited financial performance for Zeekr Group in Q2 2025, showing a 2.2% year-on-year increase in automotive sales revenue to RMB 22.916 billion, and a 20.0% quarter-on-quarter increase [1] - Total revenue for Q2 2025 was RMB 27.431 billion, reflecting a 0.9% year-on-year decrease but a 24.6% quarter-on-quarter increase [1] - The net loss for Q2 2025 was RMB 0.287 billion, a significant reduction of 88.8% year-on-year and 62.4% quarter-on-quarter [1] - Adjusted net loss (non-GAAP) for Q2 2025, excluding share-based compensation expenses, was RMB 0.257 billion, down 84.2% year-on-year and 59.8% quarter-on-quarter [1] Automotive Sales Performance - Total vehicle deliveries in Q2 2025 reached 130,900 units, marking a 9.3% year-on-year increase and a 14.8% quarter-on-quarter increase [1] - Zeekr brand delivered 49,337 vehicles, while Lynk & Co brand delivered 81,500 vehicles, with 58.8% of Lynk & Co deliveries coming from new energy vehicles [1] - The increase in automotive sales revenue year-on-year was primarily driven by higher sales of the Lynk & Co brand, partially offset by a decline in Zeekr brand sales [1] - The quarter-on-quarter increase in automotive sales revenue was attributed to the launch of new models in Q2 2025 [1]

Core Viewpoint - Geely Automobile reported a total vehicle delivery of 130,866 units in the second quarter, reflecting a year-on-year increase of 9.3% and a quarter-on-quarter increase of 14.8% [1] Group 1: Delivery Performance - The Zeekr brand delivered 49,337 vehicles [1] - The Lynk & Co brand delivered 81,529 vehicles, with 58.8% of deliveries coming from new energy vehicles [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並表明不會就因本公佈全部或任何部份內容而產生 或因倚賴該等內容而引致之任何損失承擔任何責任。 GEELY AUTOMOBILE HOLDINGS LIMITED 175 80175 海外監管公佈 上市附屬公司－ZEEKR INTELLIGENT TECHNOLOGY HOLDING LIMITED 二零二五年第二季度未經審核財務業績公佈 本公佈由吉利汽車控股有限公司（「本公司」）根據香港聯合交易所有限公司證券上市規則 第13.10B條而作出。 ZEEKR Intelligent Technology Holding Limited（「極氪」）為本公司之非全資附屬公司，其 股份以美國存託股票形式於美國紐約證券交易所上市，已於二零二五年八月十四日向美 國證券交易委員會遞交表格6-K，內容有關極氪截至二零二五年第二季度之未經審核財務 業績（「二零二五年第二季度業績」）。詳情請參閱隨附之二零二五年第二季度業績。 本公佈以英文發佈，並備有中文譯本。如中英文版本內容有任何歧義或不一致，概以英 文版本為準。 承董事 ...