2019-04-10 08:54Financial Performance - Total revenue for the year 2018 reached RMB 106,595,133, an increase of 15% compared to RMB 92,760,718 in 2017[11] - Profit attributable to equity holders of the company was RMB 12,553,207, representing an 18% increase from RMB 10,633,715 in the previous year[14] - Basic earnings per share increased to RMB 1.40, up 18% from RMB 1.19 in 2017[14] - Total revenue for 2018 rose by 15% to RMB 106.6 billion, driven by increased sales volume and improved profit margins[18] - In 2018, the group's net profit attributable to shareholders increased by 18% to RMB 12.55 billion compared to 2017[18] - The company reported a net profit of HKD 7.5 billion, reflecting a 10% increase from the previous year, driven by strong sales and cost management strategies[76] Sales and Market Performance - The group sold a total of 1,500,838 vehicles in 2018, representing a 20% increase year-on-year[18] - Domestic sales recorded a growth of 19%, including sales from the "Lynk" brand vehicles[17] - The group’s market share in the Chinese passenger car market rose from 5.0% in 2017 to 6.2% in 2018[46] - Geely Automobile Holdings Limited's total sales in 2018 reached 1,500,838 units, a 20% increase compared to 2017, despite a 4.1% decline in the overall Chinese passenger car market[23] - The total sales volume of the Lynk & Co joint venture reached 120,414 units in 2018, meeting management's expectations, with a net profit of RMB 667.61 million for the year[56] Capital Expenditure and Investments - The company’s capital expenditure (CAPEX) for the year was RMB 3,709 million, reflecting ongoing investment in growth[12] - The total capital expenditure for the group in 2018 was RMB 7.5 billion, within the initial budget of RMB 11.5 billion[38] - The company plans to allocate approximately RMB 11.6 billion for capital expenditures in 2019, focusing on new vehicle platforms and upgrades to existing production facilities[38] - The company acquired three manufacturing plants in Hangzhou, Guiyang, and Ningbo, with a total planned annual production capacity of 690,000 units[28] Debt and Financial Position - Total liabilities were RMB 46,086,262, a decrease from RMB 50,169,918 in 2017[11] - The company reported a total debt to equity ratio of 7.6%, up from 3.8% in the previous year, indicating increased leverage[14] - The group’s total borrowings increased by 164% to RMB 3.42 billion, while interest expenses decreased by 30%[38] - The total amount utilized from the bond proceeds is RMB 1.927 billion, including RMB 1.847 billion for the acquisition of three subsidiaries of Geely Holdings[37] Research and Development - Research and development expenses amounted to RMB 1.93 billion in 2018, a 30% increase from RMB 1.48 billion in 2017[39] - The company is investing heavily in R&D, with a budget allocation of HKD 10 billion for the development of new energy vehicles and autonomous driving technologies over the next three years[76] - The company aims for new energy and electrified vehicles to account for 90% of total sales by 2020, with significant increases expected in the coming years[53] Strategic Partnerships and Acquisitions - Geely established a joint venture with Aisin AW to manufacture and sell front-wheel drive 6-speed automatic transmissions, with a registered capital of USD 11.7 million (approximately RMB 73.4 million)[25] - The company has established a strategic partnership with Volvo to co-develop new technologies, aiming to leverage Volvo's expertise in safety and sustainability[76] - The company plans to expand its market presence through strategic acquisitions and partnerships in the automotive sector[183] Corporate Governance and Management - The board consists of members with diverse backgrounds, providing valuable insights across all important areas[83] - The company has adhered to the corporate governance code, with minor deviations noted in the report[82] - The management team includes experienced executives with over 32 years in the automotive industry, highlighting strong leadership capabilities[72] - The company emphasizes the importance of continuous professional development for directors and senior management[99] Sustainability and Environmental Commitment - The company is committed to sustainability, with plans to reduce carbon emissions from its manufacturing processes by 30% by 2025[77] - The company is focused on sustainable development by prioritizing environmental performance in vehicle design and manufacturing processes[157] - The company has implemented a "Blue Geely" action plan for its new energy strategy, aligning with international environmental development trends[157] Future Outlook and Projections - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 25%[93] - The company plans to launch several new car models in 2019, enhancing its competitive edge in the automotive market[152] - Geely plans to expand its market presence by entering new international markets, targeting a 25% increase in overseas sales by 2020[77]