GEELY AUTO(00175)2024-08-28 08:32Revenue and Profit Growth - Revenue for the six months ended June 30, 2024, reached RMB 107,305.45 million, a significant increase from RMB 73,181.75 million in the same period in 2023[16] - Gross profit for the period was RMB 16,220.89 million, up from RMB 10,540.49 million in 2023[16] - Profit before tax surged to RMB 10,939.92 million, compared to RMB 1,474.10 million in the previous year[16] - Net profit attributable to equity holders of the company was RMB 10,597.87 million, a substantial rise from RMB 1,570.73 million in 2023[16] - Net profit for the six months ended June 30, 2024, reached RMB 10,383,610 thousand, a significant increase from RMB 1,273,508 thousand in the same period of 2023[17] - Total comprehensive income for the period amounted to RMB 10,396,943 thousand, compared to RMB 1,185,698 thousand in the previous year[17] - Revenue from contracts with customers under HKFRS 15 increased to RMB 107,305,450 thousand in the first half of 2024, up from RMB 73,181,745 thousand in the same period of 2023, representing a 46.6% year-over-year growth[30] - Sales of automobiles and related services contributed RMB 87,479,658 thousand, accounting for 81.5% of total revenue, with a 45.1% increase compared to the previous year[30] - Revenue from a major customer (Customer A) increased to RMB 16,131,081 thousand in 2024, up 35.5% from RMB 11,904,647 thousand in 2023[33] - Revenue from battery packs and related parts grew to RMB 9,324,178 thousand in 2024, a 56.6% increase from RMB 5,954,587 thousand in 2023[30] - Total revenue (excluding Lynk & Co joint venture) increased by 47% year-on-year to RMB 107.3 billion, with average revenue per vehicle rising by RMB 4,000 to RMB 105,000[154] - Net profit attributable to equity holders of the company reached RMB 10.6 billion, a year-on-year increase of 575%, with diluted earnings per share of RMB 1.04[155] Asset and Liability Changes - Property, plant, and equipment increased to RMB 27,448,564 thousand as of June 30, 2024, from RMB 27,350,540 thousand at the end of 2023[18] - Intangible assets rose to RMB 26,327,992 thousand, up from RMB 23,919,814 thousand at the end of 2023[18] - Trade and other receivables in current assets decreased to RMB 35,355,175 thousand from RMB 42,710,734 thousand at the end of 2023[18] - Bank balances and cash increased to RMB 41,487,826 thousand, up from RMB 35,745,963 thousand at the end of 2023[18] - Total equity attributable to the company's shareholders grew to RMB 89,624,643 thousand from RMB 80,508,824 thousand at the end of 2023[19] - Non-current liabilities, including trade and other payables, increased to RMB 2,863,971 thousand from RMB 2,721,668 thousand at the end of 2023[19] - Bank borrowings in non-current liabilities rose to RMB 3,320,400 thousand from RMB 2,840,240 thousand at the end of 2023[19] - The company's equity attributable to owners of the parent as of June 30, 2023, was RMB 81,203,571 thousand, showing an increase from RMB 76,195,815 thousand at the beginning of the year[20] - The company's total assets as of June 30, 2023, stood at RMB 76,569,089 thousand, with liabilities amounting to RMB 51,214,084 thousand[20] - The company's total equity attributable to non-controlling interests was RMB 4,634,482 thousand as of June 30, 2023[20] - The company's equity attributable to owners of the parent company increased to RMB 88,624,643 thousand as of June 30, 2024, compared to RMB 80,508,824 thousand at the beginning of the year[21] - The company's total assets increased to RMB 96,177,997 thousand as of June 30, 2024, compared to RMB 85,151,498 thousand at the beginning of the year[21] - The company's total liabilities increased to RMB 6,553,354 thousand as of June 30, 2024, compared to RMB 4,642,674 thousand at the beginning of the year[21] - The company's retained earnings increased to RMB 61,425,948 thousand as of June 30, 2024, compared to RMB 53,612,890 thousand at the beginning of the year[21] - The company's total equity increased to RMB 88,624,643 thousand as of June 30, 2024, compared to RMB 80,508,824 thousand at the beginning of the year[21] - Total cash reserves (including bank balances, cash, and restricted bank deposits) reached RMB 44.4 billion as of June 30, 2024, up from RMB 38 billion at the end of December 2023[156] - The company's total borrowings decreased by 13% to RMB 5.3 billion as of June 30, 2024, compared to the end of December 2023[157] Cash Flow and Financing Activities - Operating cash flow from operating activities increased to RMB 14,151,902 thousand in the first half of 2024, up from RMB 10,698,972 thousand in the same period of 2023[22] - Net cash used in investing activities was RMB 10,070,599 thousand in the first half of 2024, compared to RMB 8,986,314 thousand in the same period of 2023[22] - Net cash from financing activities was RMB 548,896 thousand in the first half of 2024, a significant improvement from a net cash outflow of RMB 2,206,223 thousand in the same period of 2023[22] - Cash and cash equivalents at the end of the period increased to RMB 41,487,826 thousand, up from RMB 32,847,813 thousand at the end of the first half of 2023[22] - The company issued RMB 1,517,719 thousand from the issuance of Zeekr ordinary shares during the first half of 2024[22] - The company received RMB 3,000,000 thousand in advances from an associate during the first half of 2024[22] - The company repaid RMB 3,650,000 thousand to an associate during the first half of 2024[22] - Net cash generated from operating activities reached RMB 14.2 billion in the first half of 2024, driven by increased sales volume and improved gross margin[179] - Total capital expenditure for the first half of 2024 was RMB 7.0 billion, primarily due to increased R&D investment in new energy and intelligent transformation[179] - Zeekr raised approximately $480.9 million (RMB 3.47 billion) through its IPO in May 2024, with the group subscribing to 12.9 million ADS worth $270.9 million (RMB 1.96 billion)[179] - The group's total cash level increased by 17% to RMB 44.4 billion as of June 30, 2024, compared to December 31, 2023[179] - Total borrowings decreased to RMB 5.3 billion as of June 30, 2024, from RMB 6.1 billion on December 31, 2023[179] Investments and Joint Ventures - The company holds a 35% stake in Hanlai Wando (Ningbo) Automotive Chassis System Technology Co., Ltd., which focuses on manufacturing key automotive chassis components and electronic devices[50] - The company acquired a 49.9% stake in Proton Holdings Berhad and DRB-HICOM Geely Sdn. Bhd., providing entry into the Southeast Asian right-hand drive passenger vehicle market[53] - The company sold its 45% stake in Chongqing Ruilan Automotive Technology Co., Ltd. for RMB 504 million, recognizing a gain of RMB 166,295,000 in the first half of 2024[54] - The company's stake in Wuxi Xingqu Technology Co., Ltd. was diluted from 27.6% to 24.15% due to a capital injection of RMB 300 million by other investors, resulting in a gain of RMB 5,791,000[55] - Renault Korea paid a total dividend of at least 63 billion KRW (approximately 328 million CNY) to CIL for the fiscal years ending December 31, 2022, and 2023, meeting the minimum dividend guarantee requirement[56] - Proton Group's net assets as of June 30, 2024, were 7,089,235 thousand CNY, a decrease from 7,634,175 thousand CNY as of December 31, 2023[57] - Renault Korea's net assets as of June 30, 2024, were 8,727,373 thousand CNY, a decrease from 9,472,695 thousand CNY as of December 31, 2023[57] - Proton Group's revenue for the six months ending June 30, 2024, was 7,159,483 thousand CNY, compared to 2,699,271 thousand CNY for the period from April 28, 2023, to June 30, 2023[58] - Renault Korea's revenue for the six months ending June 30, 2024, was 7,613,867 thousand CNY, a decrease from 10,512,043 thousand CNY for the same period in 2023[58] - The company's share of profit from joint ventures for the six months ending June 30, 2024, was 239,848 thousand CNY, compared to 227,158 thousand CNY for the same period in 2023[60] - The company's investment in non-listed joint ventures as of June 30, 2024, was 23,685,537 thousand CNY, a significant increase from 7,305,706 thousand CNY as of December 31, 2023[61] - The company holds a 75% stake in Geely Auto Finance Co., Ltd., which has a registered capital of 4,000,000,000 CNY[63] - The company holds a 50% stake in Lynk & Co Automotive Technology Co., Ltd., which has a registered capital of 7,500,000,000 CNY[63] - The company holds a 33% stake in Horse Powertrain Limited, which has a registered capital of 6,000,000,000 EUR[63] - Lynk & Co Group's net assets as of June 30, 2024, were RMB 6,696,084 thousand, a decrease of 1.6% compared to RMB 6,804,559 thousand as of December 31, 2023[65][67] - Geely Auto Finance's net assets as of June 30, 2024, were RMB 8,740,444 thousand, an increase of 8.3% compared to RMB 8,071,740 thousand as of December 31, 2023[65][67] - Lynk & Co Group reported a loss of RMB 246,377 thousand for the six months ended June 30, 2024, compared to a loss of RMB 660,691 thousand for the same period in 2023[66] - Geely Auto Finance reported a profit of RMB 668,704 thousand for the six months ended June 30, 2024, compared to a profit of RMB 647,938 thousand for the same period in 2023[66] - Lynk & Co Group's revenue for the six months ended June 30, 2024, was RMB 21,297,276 thousand, an increase of 70.9% compared to RMB 12,462,437 thousand for the same period in 2023[66] - Geely Auto Finance's revenue for the six months ended June 30, 2024, was RMB 2,132,847 thousand, a decrease of 4.3% compared to RMB 2,228,668 thousand for the same period in 2023[66] - The company's joint venture, Yiwu Geely Automatic Transmission Co., Ltd., recorded a purchase of powertrain products amounting to RMB 190,518 thousand and interest income of RMB 5,438 thousand for the six months ended June 30, 2024[135] - The company's joint venture, Baoji Geely Engine Co., Ltd., recorded a purchase of powertrain products amounting to RMB 93,119 thousand for the six months ended June 30, 2024[135] - The company's joint venture, Ningbo Geely Luoyou Engine Parts Co., Ltd., recorded a purchase of powertrain products amounting to RMB 20,619 thousand for the six months ended June 30, 2024[135] - The company's joint venture, Geely Changxing Automatic Transmission Co., Ltd., recorded a purchase of powertrain products amounting to RMB 272,171 thousand for the six months ended June 30, 2024[135] - The company's ultimate holding company, Geely Holding, recorded operating service fees of RMB 26,189 thousand for the six months ended June 30, 2024[135] - The company's financial assets measured at fair value through other comprehensive income (transferable) amounted to RMB 11,717,366 thousand as of June 30, 2024[138] - The company's listed equity investments measured at fair value through profit or loss amounted to RMB 79,504 thousand as of June 30, 2024[138] - The company's foreign exchange forward contracts not designated as hedging instruments amounted to RMB 229,935 thousand as of June 30, 2024[138] - The company's acquisition of assets from Geely Holding Group for the production and R&D of Lynk & Co, Zeekr, and Geely brand vehicles amounted to a maximum cash consideration of RMB 632,800,000[136] - The company's acquisition of assets from Geely Holding Group for the production and R&D of Lynk & Co, Zeekr, and Geely brand vehicles amounted to a maximum cash consideration of RMB 508,500,000[136] - ZEEKR completed the issuance of 134,992,983 Series A preferred shares for a total consideration of $726,416,153 (approximately RMB 5,204,460,000), reducing the company's ownership in ZEEKR from 58.31% to 54.83%[143][144] - ZEEKR's book value increased to RMB 7,739,989,000 after the issuance of Series A preferred shares, with non-controlling interests increasing by RMB 3,897,355,000 and equity attributable to the company's shareholders increasing by RMB 1,307,105,000[144] - In 2024, ZEEKR completed its IPO, issuing 21,000,000 American Depositary Shares (ADS), equivalent to 210,000,000 ZEEKR shares, with the company subscribing to 12,900,952 ADS (129,009,520 ZEEKR shares)[146] - ZEEKR received net proceeds of approximately $209,989,000 (RMB 1,517,719,000) from the IPO after deducting issuance costs and the company's subscription payment of $270,920,000 (RMB 1,956,476,000)[146] - The company's ownership in ZEEKR decreased from 54.73% to 53.63% due to the IPO and the vesting of 45,555,414 ZEEKR incentive shares under the ZEEKR Share Incentive Plan[147] - ZEEKR's revenue for the six months ended June 30, 2024, was RMB 34,740,263, with a loss of RMB 1,002,356, compared to revenue of RMB 21,282,799 and a loss of RMB 808,627 for the same period in 2023[148] - The company issued RMB 2 billion medium-term notes on August 1, 2024, with the proceeds to be used to supplement the working capital of its subsidiary, Geely Automobile[150] - The company sold its 45% equity stake in Chongqing Ruilan for RMB 504 million, recording a gain of RMB 166 million from the transaction[158] - The company established Horse Powertrain, a joint venture with Geely Holding and Renault, holding 33% equity, and later sold 10% of its stake to Aramco Asia Singapore for an undisclosed amount[159][160] - The company invested USD 271 million (RMB 1.956 billion) in Zeekr's IPO, increasing its stake to 53.63% and distributing a special dividend of HKD 75 million (RMB 70 million) to shareholders[161] - The company issued RMB 2 billion in medium-term notes with a fixed annual interest rate of 2.18%, maturing on August 2, 2027[162] - The joint venture with LG Chem, involving an investment of USD 94,000,000 (approximately RMB 682,844,000) by the company, had not been completed as of June 30, 2024[101] - The establishment of Horse Powertrain, a joint venture with Zhejiang Geely Holding Group and Renault, involved the injection of assets worth €2.31 billion, €1.19 billion, and €3.5 billion respectively, with ownership split at 33%, 17%, and 50%[94][96] - As of December 31, 2023, the assets classified as held for sale amounted to RMB 18,648,139,000, with related liabilities of RMB 7,885,018,000[94] - The transaction for Horse Powertrain was completed on May 31, 2024, resulting in a deemed disposal gain of RMB 7,660,446,000 for the company[96] - The net assets sold in the Horse Powertrain transaction were valued at RMB 10,512,859,000 as of May 31, 2024[97] - The company's 33% stake in Horse Powertrain was preliminarily valued at RMB 18,175,311,000[97] - A 10%