吉利汽车(00175) - 2025 - 中期财报

Company Information Board of Directors and Committees The company's Board of Directors comprises executive and independent non-executive directors, supported by audit, remuneration, nomination, sustainability, and executive committees to ensure robust corporate governance - Executive Directors include Mr. Li Shufu (Chairman), Mr. Li Donghui (Vice Chairman), Mr. Gui Sheng Yue (CEO), Mr. Gan Jiayue, and Mr. Mao Jianming[3] - Independent Non-Executive Directors include Ms. Gao Jie, Ms. Yu Liping, Mr. Zhu Hansong, and Ms. Zeng Jingyi[3] - The company has established Audit, Remuneration, Nomination, Sustainability, and Executive Committees, each with clearly defined membership and chairpersons[3] Principal Banks and Offices The company maintains principal banking relationships in Hong Kong and mainland China, with its head office in Wan Chai, Hong Kong, a registered office in the Cayman Islands, and is listed on the Hong Kong Stock Exchange - Principal banks in Hong Kong include Australia and New Zealand Banking Group, Bank of America, Bank of China (Hong Kong), among others[3] - Principal banks in China include Bank of China, BNP Paribas (China), CITIC Bank, among others[4] - The company's stock codes are 175 (HKD counter) and 80175 (RMB counter), with its website at http://www.geelyauto.com.hk[4](index=4&type=chunk) Independent Review Report Scope of Review and Conclusion The auditor reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410, finding no material matters and concluding it complies in all material respects with Hong Kong Accounting Standard 34 - The auditor has reviewed the interim financial report of Geely Automobile Holdings Limited and its subsidiaries for the six months ended June 30, 2025[6] - The scope of review is substantially less than an audit, thus no audit opinion is expressed[7] - The conclusion is that nothing has come to the auditor's attention that causes them to believe the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[8] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For H1 2025, revenue grew 26.5% to RMB 150.3 billion, but profit for the period decreased 9.8% to RMB 9.45 billion, primarily due to increased taxation and non-controlling interests Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 150,284,734 | 118,792,689 | 26.5 | | Cost of sales | (125,565,995) | (98,924,341) | 26.9 | | Gross profit | 24,718,739 | 19,868,348 | 24.4 | | Other income / (losses) – net | 4,761,654 | 870,986 | 446.7 | | Profit before tax | 11,286,164 | 10,972,450 | 2.9 | | Taxation | (1,834,796) | (496,188) | 269.8 | | Profit for the period | 9,451,368 | 10,476,262 | (9.8) | | Profit attributable to owners of the parent | 9,289,807 | 10,789,540 | (13.8) | | Basic earnings per share | RMB 92.18 cents | RMB 106.50 cents | (13.4) | - Other income / (losses) – net significantly increased by 446.7%, primarily driven by net foreign exchange gains[10] - Taxation expenses significantly increased by 269.8% year-on-year, contributing to the decrease in profit for the period[10] Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, total comprehensive income slightly increased by 0.2% to RMB 10.58 billion, mainly due to a substantial increase in other comprehensive income, net of tax Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 9,451,368 | 10,476,262 | (9.8) | | Other comprehensive income for the period, net of tax | 1,126,571 | 82,283 | 1269.2 | | Total comprehensive income for the period | 10,577,939 | 10,558,545 | 0.2 | | Total comprehensive income attributable to owners of the parent | 10,428,688 | 10,806,355 | (3.5) | | Total comprehensive income attributable to non-controlling interests | 149,251 | (247,810) | Not applicable | - Other comprehensive income for the period, net of tax, significantly increased by 1269.2% from RMB 82,283 thousand in 2024 to RMB 1,126,571 thousand in 2025[11] - Total comprehensive income attributable to non-controlling interests shifted from a loss to a profit, indicating improved financial performance of non-controlling interests[11] Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets and equity increased, but net current liabilities expanded, indicating increased short-term liquidity pressure due to higher bank borrowings and bills payable Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 120,272,565 | 118,946,233 | 1.1 | | Current assets | 153,831,697 | 152,127,675 | 1.1 | | Current liabilities | (162,204,145) | (162,918,752) | (0.4) | | Net current (liabilities) / assets | (8,372,448) | (10,791,077) | (22.4) | | Total equity | 92,098,272 | 93,991,252 | (2.0) | | Non-current liabilities | (19,801,845) | (14,163,904) | 39.8 | | Bank borrowings (current) | 9,129,273 | 1,358,276 | 572.1 | | Bank borrowings (non-current) | 7,278,450 | 2,736,593 | 165.2 | | Bills payable | 27,988,002 | 26,912,330 | 4.0 | - Net current liabilities narrowed by 22.4% from RMB (10,791,077) thousand as of December 31, 2024, to RMB (8,372,448) thousand as of June 30, 2025[12] - Current bank borrowings significantly increased by 572.1%, and non-current bank borrowings grew by 165.2%, indicating increased financing activities by the company[12][13] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners of the parent slightly increased, but non-controlling interests significantly decreased due to the acquisition of jointly controlled entities and additional Zeekr interests Key Data from Condensed Consolidated Statement of Changes in Equity | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total equity attributable to owners of the parent (end of period) | 89,619,548 | 91,819,603 | | Non-controlling interests (end of period) | 2,478,724 | 8,847,635 | | Profit for the period (attributable to owners of the parent) | 9,289,807 | 10,789,540 | | Total comprehensive income for the period (attributable to owners of the parent) | 10,428,688 | 10,806,355 | | Acquisition of subsidiaries under common control | (4,991,623) | (232,994) | | Acquisition of additional interests in Zeekr from non-controlling interests | (7,665) | – | - Non-controlling interests significantly decreased from RMB 8,847,635 thousand as of June 30, 2024, to RMB 2,478,724 thousand as of June 30, 2025, primarily due to the acquisition of subsidiaries under common control and additional interests in Zeekr from non-controlling interests[14][15] - Profit for the period attributable to owners of the parent decreased by 13.8% year-on-year, while total comprehensive income attributable to owners of the parent only decreased by 3.5%, indicating a positive contribution from other comprehensive income to equity[14][15] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash from operating activities decreased, but net cash from financing activities significantly turned positive, leading to a substantial increase in net cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 15,034,476 | 18,955,422 | (20.7) | | Net cash used in investing activities | (15,194,366) | (13,359,215) | 13.7 | | Net cash from / (used in) financing activities | 10,254,249 | (1,214,693) | Not applicable | | Net increase in cash and cash equivalents | 10,094,359 | 4,381,514 | 130.4 | | Cash and cash equivalents at end of period | 53,192,123 | 46,921,827 | 13.4 | - Net cash from financing activities shifted from a net outflow of RMB 1,214,693 thousand in the same period of 2024 to a net inflow of RMB 10,254,249 thousand in the same period of 2025, primarily due to a significant increase in proceeds from bank borrowings[16] - Cash and cash equivalents at the end of the period increased by 13.4% to RMB 53,192,123 thousand, indicating ample cash reserves for the company[16] Notes to the Unaudited Interim Financial Report Basis of Preparation and Changes in Accounting Policies (Note 1) Effective January 1, 2025, the company changed its accounting policy for business combinations under common control to merger accounting (pooling of interests method), replacing the acquisition method, with retrospective restatement of comparative figures to enhance financial reporting transparency and reflect the substance of internal reorganizations - Effective January 1, 2025, the company adopted merger accounting (pooling of interests method) for business combinations under common control, replacing the previous acquisition method[20] - This change aims to enhance financial reporting transparency, avoid artificial gains or goodwill, present more accurate operating performance, and align with international practices (e.g., Zeekr's adoption of US GAAP)[22][24] - The change has been applied retrospectively to all business combinations under common control, with comparative figures for January 1, 2024, December 31, 2024, and the six months ended June 30, 2024, restated[23][29] Impact of Accounting Policy Change on Statement of Profit or Loss for the Six Months Ended June 30, 2024 | Metric | Original Amount (RMB thousands) | Merger Adjustment (RMB thousands) | Restated Amount (RMB thousands) | | :--- | :--- | :--- | :--- | | Revenue | 107,305,450 | 11,487,239 | 118,792,689 | | Profit before tax | 10,939,917 | 32,533 | 10,972,450 | | Profit for the period | 10,383,610 | 92,652 | 10,476,262 | | Profit attributable to owners of the parent | 10,597,868 | 191,672 | 10,789,540 | | Basic earnings per share | RMB 104.59 cents | Increased by RMB 1.91 cents | RMB 106.50 cents | Adoption of New and Revised HKFRSs (Note 2) The company adopted HKAS 21 (Amendment) 'Lack of Exchangeability' effective January 1, 2025, with no significant impact anticipated on the condensed consolidated financial statements, and is evaluating other new and revised standards issued but not yet effective - HKAS 21 (Amendment) 'Lack of Exchangeability', effective January 1, 2025, has been adopted and is not expected to have a significant impact on the condensed consolidated financial statements[37][38] - Several new and revised HKFRSs have been issued but are not yet effective, covering areas such as financial instrument classification and measurement, and financial statement presentation and disclosure[39][40] - The directors anticipate that all issued standards will be incorporated into accounting policies in the first reporting period commencing on or after their effective dates, with preliminary assessment indicating no significant impact on the condensed consolidated financial statements[40] Revenue and Segment Information (Note 3) For the six months ended June 30, 2025, the company's total revenue reached RMB 150.3 billion, a 26.5% year-on-year increase, primarily from vehicle sales and related services, with performance reviewed on a single business segment basis and no single customer contributing over 10% of revenue - Revenue primarily refers to sales of automobiles, auto parts, battery packs and related components, provision of contract manufacturing services, research and development and related technical support services, and licensing of intellectual property, net of value-added tax or related sales taxes and discounts[41] Revenue by Major Products/Services | Major Products/Services | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Sales of automobiles and related services | 134,598,803 | 104,799,710 | 28.4 | | Sales of auto parts | 5,625,903 | 4,856,112 | 15.8 | | Sales of battery packs and related components | 3,581,710 | 4,345,662 | (17.6) | | Contract manufacturing income | 3,392,063 | 1,745,644 | 94.3 | | R&D and related technical support services | 2,420,750 | 2,951,236 | (18.0) | | Licensing of intellectual property | 665,505 | 94,325 | 605.5 | | Total Revenue | 150,284,734 | 118,792,689 | 26.5 | - The company reviews the Group's performance on a single business segment basis, with all business operations related to automobiles and related services, sharing similar economic characteristics[43][44] - For the six months ended June 30, 2025, and 2024, no individual customer contributed more than 10% of the Group's revenue[45] Other Income / (Losses) – Net (Note 4) For the six months ended June 30, 2025, the company's other income – net significantly increased by 446.7% to RMB 4.76 billion, primarily driven by substantial net foreign exchange gains Details of Other Income / (Losses) – Net | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Net foreign exchange gains / (losses) | 3,633,837 | (54,700) | Not applicable | | Net realised and unrealised losses on derivative financial instruments | (188,745) | (426,035) | (55.7) | | Government grants and subsidies | 693,289 | 545,680 | 27.0 | | Gain on deemed disposal / disposal of investments accounted for using the equity method | 2,130 | 172,086 | (98.8) | | Total | 4,761,654 | 870,986 | 446.7 | - Net foreign exchange gains shifted from a loss of RMB 54,700 thousand in the same period of 2024 to a gain of RMB 3,633,837 thousand in the same period of 2025, being the primary driver for the significant increase in other income – net[46] - Government grants and subsidies increased by 27.0% year-on-year, mainly related to cash subsidies received from the government for operating activities[46] Profit Before Tax (Note 5) For the six months ended June 30, 2025, the company's profit before tax was impacted by changes in finance costs, staff costs, and R&D expenses, with net finance income turning into an expense, a slight increase in total staff costs, and a significant rise in total R&D costs Key Deductions / (Additions) to Profit Before Tax | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 383,446 | 556,472 | (31.0) | | Finance income | (418,151) | (773,997) | (46.0) | | Net finance income | (34,705) | (217,525) | (84.0) | | Total staff costs | 10,824,523 | 10,740,683 | 0.8 | | Total R&D costs | 7,327,668 | 6,040,319 | 21.3 | | Total depreciation | 2,735,343 | 2,831,407 | (3.4) | | Total impairment losses on non-financial assets | 4,736 | 253,569 | (98.1) | - Net finance income significantly decreased by 84.0% from a gain of RMB 217,525 thousand in the same period of 2024 to a gain of RMB 34,705 thousand in the same period of 2025[47] - Total R&D costs increased by 21.3% year-on-year to RMB 7,327,668 thousand, indicating continuous increase in the company's R&D investments[48] - Total impairment losses on non-financial assets significantly decreased by 98.1% from RMB 253,569 thousand in the same period of 2024 to RMB 4,736 thousand[48] Taxation (Note 6) For the six months ended June 30, 2025, the company's taxation expenses significantly increased by 269.8% to RMB 1.83 billion, primarily due to higher China corporate income tax and changes in deferred tax Taxation Details | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Current tax: China corporate income tax | 2,061,466 | 1,478,187 | 39.5 | | Current tax: Under-provision in prior years | 396,935 | 228,529 | 73.7 | | Deferred tax | (623,605) | (1,210,528) | (48.5) | | Total Taxation | 1,834,796 | 496,188 | 269.8 | - China corporate income tax increased by 39.5% year-on-year, and under-provision in prior years grew by 73.7%, leading to a significant increase in total current tax[50] - Deferred tax decreased by 48.5% from RMB (1,210,528) thousand in the same period of 2024 to RMB (623,605) thousand in the same period of 2025[50] - Certain PRC subsidiaries enjoy a preferential income tax rate of 15% due to their high-tech enterprise status or engagement in encouraged industries[51] Dividends (Note 7) The company declared and approved a 2024 final dividend of RMB 3.119 billion in the first half of 2025, and a dividend of RMB 1.051 billion to non-controlling interests, while distributions on perpetual capital securities ceased and special dividends were completed - A 2024 final dividend of HKD 0.33 per ordinary share, totaling approximately RMB 3,119,413,000, was approved by shareholders and paid in July 2025[54] - For the six months ended June 30, 2025, a subsidiary declared dividends of approximately RMB 1,050,924,000 to non-controlling interests[55] - No distributions on perpetual capital securities were made for the six months ended June 30, 2025, as all issued perpetual capital securities were early redeemed in December 2024[56] - In May 2024, the company declared a special dividend of approximately HKD 75,208,000 (approximately RMB 69,853,000) in connection with the Zeekr offering, which was approved by shareholders in June 2024[57] Earnings Per Share (Note 8) For the six months ended June 30, 2025, basic earnings per share were RMB 92.18 cents and diluted earnings per share were RMB 90.31 cents, both lower than the prior year period Earnings Per Share Data | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company (RMB thousands) | 9,289,807 | 10,717,138 | | Weighted average number of ordinary shares (basic) | 10,078,016,592 | 10,063,382,383 | | Basic earnings per share | RMB 92.18 cents | RMB 106.50 cents | | Weighted average number of ordinary shares (diluted) | 10,286,554,066 | 10,132,799,383 | | Diluted earnings per share | RMB 90.31 cents | RMB 105.77 cents | - Basic earnings per share decreased by 13.4% year-on-year, and diluted earnings per share decreased by 14.6% year-on-year[58][59] - The dilutive effect primarily stems from the company's share option scheme and share award scheme[60] Property, Plant and Equipment (Note 9) As of June 30, 2025, the net book value of property, plant and equipment slightly decreased to RMB 34.61 billion, with additions of RMB 2.58 billion during the period, offset by depreciation and disposals/write-offs Changes in Property, Plant and Equipment | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net book value at beginning of period / year | 34,851,282 | 41,150,682 | | Additions | 2,579,745 | 5,076,540 | | Disposals / write-offs | (201,115) | (2,801,752) | | Depreciation | (2,682,215) | (5,931,201) | | Impairment losses | (3,479) | (785,915) | | Exchange adjustments | 439,311 | (221,936) | | Net book value at end of period / year | 34,614,510 | 34,851,282 | - Additions to property, plant and equipment during the period amounted to RMB 2,579,745 thousand, primarily for expanding the new energy product matrix and continuously advancing R&D in new energy and intelligent technologies[61][176] - Total additions to right-of-use assets amounted to RMB 1,306,280,000, primarily related to leasehold rights for offices, factory properties, retail and service centers, vessels, and automobiles[62] Intangible Assets (Note 10) As of June 30, 2025, the net book value of intangible assets increased to RMB 35.82 billion, with additions of RMB 5.43 billion during the period, primarily related to the development of new energy intelligent vehicle models Changes in Intangible Assets | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net book value at beginning of period / year | 35,625,297 | 30,836,311 | | Additions | 5,432,216 | 13,817,161 | | Amortisation | (4,567,846) | (7,714,560) | | Reclassified as assets held for sale | (665,951) | (273,950) | | Net book value at end of period / year | 35,821,927 | 35,625,297 | - Additions to intangible assets during the period amounted to RMB 5,432,216 thousand, primarily related to the development of new energy intelligent vehicle models[63][200] - Amortisation of intangible assets amounted to RMB 4,567,846 thousand, reflecting the amortisation of capitalised product R&D costs[63] Interests in Associates (Note 11) As of June 30, 2025, the company's interests in associates increased to RMB 7.056 billion, mainly due to its share of post-acquisition results and other comprehensive income, with an increased stake in Xingqu Technology during the period Changes in Interests in Associates | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of unlisted investments | 4,000,772 | 3,580,772 | | Share of post-acquisition results and other comprehensive income | 1,309,223 | 524,419 | | Bargain purchase gain on subscription of an associate | 1,749,734 | 1,749,734 | | Total | 7,056,380 | 5,851,576 | - The company increased its equity interest in Xingqu Technology by 17.5% for a cash consideration of RMB 420,000,000, raising its stake to 41.65%, with Xingqu Technology remaining an associate[66] - Proton Group achieved revenue of RMB 7.989 billion and profit for the period of RMB 307 million in the first half of 2025, with the company's share of its profit being RMB 128 million[67][219] - Renault Korea achieved revenue of RMB 9.577 billion in the first half of 2025, but incurred a loss for the period of RMB 19.04 million, with the company's share of its loss being RMB 6 million[67][219] Interests in Joint Ventures (Note 12) As of June 30, 2025, the company's interests in joint ventures increased to RMB 24.42 billion, with the company selling a 41.5% stake in Geely Xindawang during the period and jointly holding Hao Si Power with Renault and Aramco Asia Singapore Changes in Interests in Joint Ventures | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of unlisted investments | 19,688,967 | 19,730,467 | | Share of post-acquisition results and other comprehensive income | 4,730,768 | 3,214,305 | | Total | 24,419,735 | 22,944,772 | - The company disposed of a 41.5% equity interest in Geely Xindawang for a cash consideration of RMB 49,800,000, recognizing a gain of RMB 2,130,000[73] - Hao Si Power Group achieved revenue of RMB 47.113 billion and net profit of RMB 966 million in the first half of 2025, with the company holding a 29.7% equity interest[76][77][215] - Geely Auto Finance achieved net profit of RMB 417 million in the first half of 2025, a 38% year-on-year decrease, with the company holding a 75% equity interest[77][214] Inventories (Note 13) As of June 30, 2025, the company's total inventories amounted to RMB 26.90 billion, a 8.4% decrease from year-end 2024, primarily due to reductions in finished goods and raw materials Inventories Details | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Raw materials | 2,955,000 | 3,210,736 | (8.0) | | Work in progress | 306,599 | 474,267 | (35.4) | | Finished goods | 23,965,674 | 26,118,626 | (8.3) | | Provision for inventories | (330,429) | (444,509) | (25.7) | | Total | 26,896,844 | 29,359,120 | (8.4) | - Finished goods inventories decreased by 8.3%, and raw materials inventories decreased by 8.0%, reflecting changes in inventory management or sales performance[79] - Provision for inventories decreased by 25.7%, indicating a reduction in inventory impairment risk[79] Trade Receivables (Note 14) As of June 30, 2025, the company's total trade receivables were RMB 18.75 billion, a slight decrease from year-end 2024, with improved aging structure for Chinese customers and increased receivables from overseas customers Trade Receivables Details | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Third parties | 6,464,430 | 4,726,468 | 36.8 | | Joint ventures | 68,373 | 66,288 | 3.2 | | Associates | 1,639,464 | 1,452,905 | 12.8 | | Related companies controlled by the Company's major shareholder | 10,574,461 | 12,938,089 | (18.2) | | Total | 18,746,728 | 19,183,750 | (2.3) | - For trade receivables from PRC customers, the proportion of 0 to 60 days aging increased from 68.5% at December 31, 2024, to 86.2% at June 30, 2025, indicating faster collection speed[81] - Trade receivables from overseas customers increased by 29.9% from RMB 4,832,816 thousand at December 31, 2024, to RMB 6,283,411 thousand at June 30, 2025[82] - The average expected loss rate for trade receivables ranged from 0.5% to 2.6%, lower than 0.8% to 2.8% at December 31, 2024[82] Bills Receivable (Note 15) As of June 30, 2025, the company's total bills receivable amounted to RMB 32.07 billion, a 22.4% decrease from year-end 2024, with all bills denominated in RMB and guaranteed by banks Bills Receivable Data | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Bills receivable | 32,066,348 | 41,344,803 | (22.4) | - All bills receivable are denominated in RMB, guaranteed by reputable banks in the PRC, and mature within one year from the end of the reporting period[84] - The company endorsed certain bank-accepted bills receivable to suppliers to settle trade payables, with RMB 1,682,259 thousand in endorsed bills and RMB 82,621,908 thousand in derecognized bills[85][86] Deposits, Prepayments and Other Receivables (Note 16) As of June 30, 2025, the company's total deposits, prepayments, and other receivables amounted to RMB 19.13 billion, a slight decrease from year-end 2024, with reductions in prepayments to suppliers and receivables from related companies Details of Deposits, Prepayments and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments to suppliers | 4,301,404 | 4,343,893 | (1.0) | | Loans to joint ventures | 3,808,818 | 3,632,019 | 4.9 | | VAT and other tax receivables | 6,454,045 | 7,056,957 | (8.6) | | Amounts due from related companies controlled by the Company's major shareholder | 25,293 | 821,975 | (96.9) | | Total | 19,130,834 | 20,206,818 | (5.4) | - Amounts due from related companies controlled by the Company's major shareholder significantly decreased by 96.9% from RMB 821,975 thousand to RMB 25,293 thousand[87] - Total advances to a joint venture (Hao Si Power) amounted to RMB 2,000,000,000, of which RMB 1,500,000,000 are entrusted loans bearing interest at annual rates ranging from 3.6% to 4.65%, expected to be settled within one year[89] Trade Payables (Note 17) As of June 30, 2025, the company's total trade payables amounted to RMB 77.07 billion, a 10.7% decrease from year-end 2024, with an improved aging structure and a higher proportion of 0-60 day payables Trade Payables Details | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Third parties | 53,984,348 | 59,951,895 | (10.0) | | Joint ventures | 3,998,866 | 1,340,236 | 198.4 | | Associates | 1,071,825 | 2,915,882 | (63.2) | | Related companies controlled by the Company's major shareholder | 18,017,691 | 22,065,101 | (18.4) | | Total | 77,072,730 | 86,273,114 | (10.7) | - For trade payables, the proportion of 0 to 60 days aging decreased from 90.7% at December 31, 2024, to 87.5% at June 30, 2025, while the proportion of 61-90 days aging increased[92] - Trade payables to joint ventures significantly increased by 198.4%, while payables to associates and related companies decreased[91] Bills Payable (Note 18) As of June 30, 2025, the company's total bills payable amounted to RMB 27.99 billion, a 4.0% increase from year-end 2024, with all bills denominated in RMB and maturing within six months Bills Payable Data | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Bills payable | 27,988,002 | 26,912,330 | 4.0 | - All bills payable are denominated in RMB and represent amounts paid and/or payable to third parties for the settlement of trade payables[93] - As of June 30, 2025, letters of credit were issued by banks and bore interest for the Group, thus the balance was classified as bank borrowings[93] Other Payables and Accruals (Note 19) As of June 30, 2025, the company's total other payables and accruals amounted to RMB 51.00 billion, a slight decrease from year-end 2024, with reductions in customer prepayments and related company payables, but a significant increase in dividends payable Details of Other Payables and Accruals | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Customer prepayments | 23,528,221 | 26,490,726 | (11.2) | | Payables for capitalised product R&D costs | 1,947,615 | 2,610,793 | (25.4) | | Dividends payable | 3,038,832 | – | Not applicable | | Dividends payable to non-controlling interests | 1,050,924 | – | Not applicable | | Amounts due to related companies controlled by the Company's major shareholder | 38,817 | 401,733 | (90.3) | | Total | 50,995,124 | 51,189,881 | (0.4) | - Customer prepayments decreased by 11.2%, mainly due to reduced prepayments for sales of automobiles, auto parts, and battery packs and related components[97] - Dividends payable and dividends payable to non-controlling interests significantly increased, reflecting dividend declarations during the period[95] - Amounts due to related companies controlled by the Company's major shareholder significantly decreased by 90.3%[95] Lease Liabilities (Note 20) As of June 30, 2025, the company's total lease liabilities amounted to RMB 4.20 billion, a 21.0% increase from year-end 2024, with new leases of RMB 1.31 billion during the period, partially offset by payments Changes in Lease Liabilities | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Beginning of period / year | 3,469,955 | 3,129,156 | | Additions to leases | 1,306,280 | 1,295,467 | | Payments | (720,286) | (1,121,210) | | End of period / year | 4,199,235 | 3,469,955 | - Additions to lease liabilities amounted to RMB 1,306,280 thousand, reflecting increased leasing activities by the company[103] - Current lease liabilities were RMB 1,043,975 thousand, and non-current lease liabilities were RMB 3,155,260 thousand[103] Bank Borrowings (Note 21) As of June 30, 2025, the company's total bank borrowings amounted to RMB 16.41 billion, a substantial 300.7% increase from year-end 2024, including new unsecured borrowings of RMB 9.44 billion, factoring loans, payables financing arrangements, and letters of credit Bank Borrowings Details | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Bank loans | 12,847,723 | 4,094,869 | 213.7 | | Other bank borrowings | 3,560,000 | – | Not applicable | | Total | 16,407,723 | 4,094,869 | 300.7 | | Current | 9,129,273 | 1,358,276 | 572.1 | | Non-current | 7,278,450 | 2,736,593 | 165.2 | - The company obtained new unsecured borrowings totaling RMB 9,442,704,000, with annual interest rates ranging from 2.2% to 5.61%[106] - New factoring loans of RMB 560,000 thousand were obtained, secured by trade receivables[107][109] - New payables financing arrangements of RMB 700,000 thousand were entered into, with interest rates ranging from 1.58% to 2.08%[109] - New letters of credit totaling RMB 1,300,000 thousand were issued, with interest rates ranging from 1.32% to 2%[112] Bonds Payable (Note 22) As of June 30, 2025, the company's total bonds payable amounted to RMB 3.5 billion, consistent with year-end 2024, with RMB 2 billion in medium-term notes issued during the period to supplement the working capital of Geely Auto Changes in Bonds Payable | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Book value at beginning of period / year | 3,500,000 | 1,500,000 | | Issuance | – | 2,000,000 | | Book value at end of period / year | 3,500,000 | 3,500,000 | - The company issued RMB 1.5 billion and RMB 2 billion medium-term notes on August 17, 2023, and August 1, 2024, respectively, with annual interest rates of 3.25% and 2.18%[113] - Proceeds from the issuance of medium-term notes will be used to supplement the working capital of Geely Auto, an indirect non-wholly owned subsidiary of the company[113] Share Capital (Note 23) As of June 30, 2025, the company's issued and fully paid share capital increased to RMB 18.42 billion, primarily due to the issuance of shares under the share option scheme Changes in Share Capital | Item | Number of Shares | Par Value (RMB thousands) | | :--- | :--- | :--- | | Issued and fully paid share capital at December 31, 2024, and January 1, 2025 | 10,075,001,783 | 184,020 | | Shares issued under share option scheme | 9,120,750 | 172 | | Issued and fully paid share capital at June 30, 2025 | 10,084,122,533 | 184,192 | - The authorized share capital consists of 18,000,000,000 shares with a par value of RMB 357,864 thousand[116] - During the period, 9,120,750 ordinary shares were issued under the share option scheme, resulting in an increase in share capital of RMB 172 thousand[116] Commitments (Note 24) As of June 30, 2025, the company's total capital commitments amounted to RMB 7.12 billion, a significant increase from year-end 2024, primarily for the purchase of property, plant and equipment and investments in joint ventures Capital Commitments Details | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Purchase of property, plant and equipment | 774,656 | 1,299,207 | (40.4) | | Investment in an associate | 244,510 | 244,510 | 0.0 | | Investment in joint ventures | 6,103,566 | 686,125 | 790.9 | | Total | 7,122,732 | 2,229,842 | 219.4 | - Commitments for investments in joint ventures significantly increased by 790.9%, primarily including a committed capital contribution of RMB 1.5 billion for the establishment of the joint venture Chongqing Qianli Zhijia Technology Co., Ltd.[117][118][160] - Total lease commitments for short-term leases amounted to RMB 195,443 thousand, primarily for plant and machinery leases[119] - As a lessor, total future minimum lease receivables amounted to RMB 141,417 thousand, primarily from plant and machinery[120] Retirement Benefit Schemes (Note 25) The company participates in Hong Kong's MPF scheme and China's government-managed retirement benefit schemes, and provides defined contribution retirement funds for overseas subsidiaries, with total employer contributions of RMB 1.18 billion for the six months ended June 30, 2025, a 21.1% year-on-year increase - The company participates in Hong Kong's Mandatory Provident Fund Scheme, where employers are required to contribute 5% of employees' relevant income, capped at HKD 30,000 per month[121] - Employees of PRC subsidiaries participate in state-managed retirement benefit schemes, with the company contributing a fixed percentage of employees' basic salaries[121] - For the six months ended June 30, 2025, total employer contributions amounted to RMB 1,180,063,000, an increase of 21.1% from RMB 974,262,000 in the same period of 2024[122] Equity-Settled Share-Based Payment Transactions (Note 26) The company operates share option and share award schemes, and Zeekr also has a share award scheme; as of June 30, 2025, 1.05 billion share options and 32.91 million award shares remain unexercised/unvested under the company's schemes, and 33.73 million award shares remain unvested under Zeekr's scheme - Under the company's share option scheme, as of June 30, 2025, a total of 1,049,813,250 share options granted to directors and employees remained unexercised[124] - Under the company's share award scheme, as of June 30, 2025, 32,910,000 award shares remained unvested[128] - Under the Zeekr share award scheme, as of June 30, 2025, 33,733,269 award shares remained unvested, with the vesting date revised to May 25[129][133][249][251] Equity-Settled Share-Based Payments Recognized in Condensed Consolidated Financial Statements | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Company's share option scheme | 119,475 | 567,619 | | Company's share award scheme | 523,287 | (142,400) | | Zeekr share award scheme | 40,737 | 930,704 | | Total | 683,499 | 1,355,923 | Significant Related Party Transactions (Note 27) The company engages in extensive transactions with numerous related parties, including sales of vehicle kits, purchases of vehicles, and R&D and technical licensing services, with the largest transaction volume with Zhejiang Geely Automobile Co., Ltd. and a significant increase in powertrain product purchases from Hao Si Power Group in the first half of 2025 - Sales of complete vehicle kits to Zhejiang Geely Automobile Co., Ltd. amounted to RMB 35,612,536 thousand, and purchases of complete vehicles amounted to RMB 36,317,547 thousand[134] - Purchases of powertrain products from Hao Si Power Group amounted to RMB 11,529,629 thousand, a significant increase from RMB 1,625,410 thousand in the same period last year[142] - Acquisition of property, plant and equipment from Geely Holding amounted to RMB 21,572 thousand, and acquisition of a subsidiary amounted to RMB 3,600,000 thousand[143] - Acquisition of a subsidiary from Volvo Investment amounted to RMB 5,400,000 thousand[141] Fair Value Measurement of Financial Instruments (Note 28) The company's financial assets and liabilities are measured at fair value across three levels; as of June 30, 2025, bills receivable at fair value through other comprehensive income are Level 2, listed equity investments are Level 1, and forward foreign exchange contracts are Level 2 - Fair value measurement of financial instruments is categorized into Level 1 (quoted prices in active markets), Level 2 (observable input data), and Level 3 (unobservable input data)[144][149] Financial Assets and Liabilities Measured at Fair Value | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Fair Value Level | | :--- | :--- | :--- | :--- | | Bills receivable at fair value through other comprehensive income (recyclable) | 32,066,348 | 41,344,803 | Level 2 | | Listed equity investments at fair value through other comprehensive income (non-recyclable) | 72,025 | 78,797 | Level 1 | | Forward foreign exchange contracts at fair value through profit or loss not designated as hedging instruments | 53,652 | 27,918 | Level 2 | - The carrying amounts of financial assets and liabilities accounted for at amortized cost approximate their fair values[151] Transactions with Non-Controlling Interests (Note 29) In the first half of 2025, the company completed the acquisition of Lynk & Co Automobile Technology Co., Ltd., resulting in a RMB 4.142 billion reduction in non-controlling interests, while Zeekr repurchased some award shares to fulfill withholding tax obligations - The company, through Zeekr, acquired 20% and 30% equity interests in Lynk & Co for a total consideration of RMB 9,104,721,000, resulting in a reduction of non-controlling interests by RMB 4,142,337,000[152][153] - Zeekr repurchased 3,054,930 Zeekr award shares to fulfill statutory withholding tax obligations[154] - In the first half of 2024, Zeekr completed its initial public offering, issuing 210 million Zeekr shares, which increased non-controlling interests by RMB 1,586,203,000[155][156] Financial Information of Zeekr and its Subsidiaries (Note 30) As of June 30, 2025, Zeekr Technology Group's non-controlling interest percentage was 34.85%, with revenue of RMB 49.45 billion for the period, but a loss of RMB 64.95 million was recorded Summary of Financial Information of Zeekr and its Subsidiaries | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-controlling interests percentage | 34.85% | 34.34% | | Non-current assets | 47,560,378 | 46,712,204 | | Current assets | 45,228,060 | 52,366,951 | | Current liabilities | (75,120,229) | (75,715,327) | | Net assets | 5,989,971 | 16,189,972 | | Carrying amount of non-controlling interests | 1,872,464 | 6,932,478 | | Revenue (six months ended June 30) | 49,454,398 | 48,251,976 | | Loss for the period (six months ended June 30) | (64,952) | (1,313,001) | | Profit / (loss) attributable to non-controlling interests (six months ended June 30) | 73,005 | (259,952) | - Zeekr's loss for the period significantly narrowed from RMB 1,313,001 thousand in the same period of 2024 to RMB 64,952 thousand, indicating improved operating performance[158] - Profit / (loss) attributable to non-controlling interests shifted from a loss to a profit, indicating improved financial performance of non-controlling interests[158] Events After the Reporting Period (Note 31) Subsequent to the reporting period, the company established the joint venture Chongqing Qianli Zhijia Technology Co., Ltd. and injected capital into Renault Brazil; most significantly, the company proposed the privatization of Zeekr to integrate resources, enhance competitiveness, and simplify the equity structure - In July 2025, the company established the joint venture Chongqing Qianli Zhijia Technology Co., Ltd., with the company contributing RMB 1.5 billion for a 30% equity stake, primarily engaged in advanced driver-assistance system development[159][160] - On June 20, 2025, the company announced a capital injection into Renault Brazil, exchanging the entire issued share capital of its wholly-owned subsidiary and cash for a 21.29% equity stake in Renault Brazil[161] - On July 15, 2025, the company proposed the privatization of Zeekr, intending to acquire all issued and outstanding Zeekr shares and American Depositary Shares for cash or consideration shares[163] - The Zeekr privatization aims to establish a unified listing platform, simplify operating structure, strengthen strategic control, enhance synergies, and improve overall competitiveness[197] Management Discussion and Analysis Overall Performance In the first half of 2025, the company achieved record-high total and new energy vehicle sales, with new energy vehicle penetration exceeding market average; despite intense competition, gross margin remained stable, but profit attributable to owners of the parent decreased by 14% year-on-year, though it increased by 102% after adjusting for special items - In the first half of 2025, China's total passenger vehicle wholesale volume increased by 13% year-on-year, domestic sales of new energy passenger vehicles grew by 34.3% year-on-year, and market penetration rose to 50.4%[169] H1 2025 Sales Performance | Metric | Sales (units) | Y-o-Y Growth (%) | Share of Total Sales (%) | | :--- | :--- | :--- | :--- | | Total Sales | 1,409,180 | 47 | 100 | | New Energy Vehicle Sales | 725,151 | 126 | 51.5 | | Internal Combustion Engine Vehicle Sales | 684,029 | 8 | 48.5 | | Plug-in Hybrid Electric Vehicle Sales | 214,348 | 61 | 15.2 | | Battery Electric Vehicle Sales | 510,803 | 173 | 36.2 | | China Market Sales | 1,225,066 | 62 | 87.0 | | China Market New Energy Vehicle Sales | 684,693 | Not applicable | 55.9 | | Export Sales | 184,114 | (8) | 13.0 | | New Energy Vehicle Export Sales | 40,458 | 146 | 22.0 | - Total revenue for the first half of 2025 increased by 27% year-on-year to RMB 150.3 billion, while average selling price per vehicle decreased by RMB 14 thousand year-on-year to RMB 96 thousand[172] - Gross margin remained stable, slightly decreasing by 0.3 percentage points year-on-year to 16.4%, primarily benefiting from economies of scale, cost control, and improved profitability of GEA architecture products[172] - Profit attributable to equity holders of the company was RMB 9.290 billion, a 14% year-on-year decrease; excluding net foreign exchange gains after tax, impairment losses on non-financial assets, and gains from disposal of subsidiaries in H1 2024, adjusted profit was RMB 6.657 billion, a 102% year-on-year increase[175] Financial Resources As of June 30, 2025, the company maintained a robust financial position with ample cash reserves, totaling RMB 58.8 billion, net cash from operating activities of RMB 15 billion, and total capital expenditure of RMB 8 billion, while total borrowings increased, net cash remained stable - Total cash level at period-end (including bank balances and cash, and restricted bank deposits) was RMB 58.8 billion, showing stable growth from RMB 46.6 billion at December 31, 2024[176] - Net cash from operating activities was RMB 15 billion, and total capital expenditure reached RMB 8 billion, primarily for new energy product matrix expansion and intelligent technology R&D[176] - Total borrowings (including all forms of loans) increased by 162% from December 31, 2024, to RMB 19.9 billion[179] - Net cash (i.e., total cash level less total borrowings) was RMB 38.9 billion, a 0.3% decrease from RMB 39.0 billion at December 31, 2024[179] Strategic Business Development and Integration In the first half of 2025, the company implemented several strategic initiatives, including Zeekr's acquisition of Lynk & Co to optimize equity structure and enhance synergies, the establishment of Qianli Zhijia joint venture to strengthen ADAS R&D, the acquisition of related auto dealerships to expand direct sales channels, the disposal of Geely Xindawang to divest non-core businesses, and capital injection into Renault Brazil to accelerate international expansion, most notably proposing Zeekr's privatization to establish a unified listing platform, fully integrate resources, and enhance overall group competitiveness - Zeekr acquired 20% and 30% equity interests in Lynk & Co for a total consideration of RMB 9.105 billion, and subscribed for new capital of RMB 367 million, making Lynk & Co a non-wholly owned subsidiary of Zeekr, aiming to drive strategic integration, eliminate horizontal competition, enhance resource utilization efficiency, and achieve synergies[178][180][184] - The joint venture Chongqing Qianli Zhijia Technology Co., Ltd. was established, with the company contributing RMB 1.5 billion for a 30% equity stake, aiming to integrate strengths, enhance ADAS R&D capabilities, and accelerate technological development[181][182][183] - Acquired 70% equity interests in six related auto dealerships for a cash consideration of approximately RMB 29.239 million, aiming to establish Geely brand direct sales channels, enhance market responsiveness, and strengthen customer relationships[188][189] - Disposed of a 41.5% equity interest in Geely Xindawang for a cash consideration of RMB 49.8 million, aiming to divest non-core business investments and optimize cash flow[190] - Injected capital into Renault Brazil, acquiring a 21.29% equity interest, aiming to enter the Latin American market and accelerate international expansion by leveraging Renault's local production system and distribution network[192][193] - Proposed the privatization of Zeekr, aiming to establish a unified listing platform, simplify operating structure, strengthen strategic control, comprehensively integrate technology, products, supply chain, marketing, services, and international market expansion, thereby enhancing the Group's overall competitiveness[194][195][197] R&D Investment and New Products In the first half of 2025, the company's total R&D investment reached RMB 7.33 billion, a 21% year-on-year increase, with most expenses capitalized for new energy intelligent vehicle development, and new models like Geely Galaxy Starburst 8, Zeekr 007 GT, and Lynk & Co 900 launched, with more new energy products planned for the second half R&D Expense Details | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Amortisation of intangible assets (capitalised product R&D costs) | 4,412,050 | 3,139,974 | 41 | | R&D costs (not eligible for capitalisation) | 2,915,618 | 2,900,345 | 1 | | Total R&D expenses deducted from profit or loss | 7,327,668 | 6,040,319 | 21 | - Capitalised product R&D costs increased by RMB 5.43 billion, primarily related to the development of new energy intelligent vehicle models[200] - New products launched in the first half include Geely Galaxy Starburst 8 (based on GEA Evo architecture), Zeekr 007 GT (based on SEA architecture), and Lynk & Co 900 (based on SPA Evo architecture)[201][202][203] - New products planned for the second half include Geely Galaxy A7, Geely Galaxy M9, Geely Galaxy Starburst 6, Zeekr 9X, and Lynk & Co 10 EM-P[204][205][207] Brand Performance In the first half of the year, Geely brand's total sales reached 1.1643 million units, a 57% year-on-year increase, with Geely Galaxy brand sales surging by 232%; Zeekr Technology Group's total revenue was RMB 49.5 billion, up 2.5%, with improved gross margins for vehicle sales, while Geely Auto Finance's net profit declined, and Hao Si Power achieved RMB 47.113 billion in revenue and RMB 966 million in net profit - Geely brand's total sales reached 1,164,303 units in the first half, a 57% year-on-year increase; Geely China Star ranked first in sales among Chinese independent brand ICE passenger vehicles for the ninth consecutive year, and Xingyue L was the best-selling ICE SUV in the Chinese passenger vehicle market[206] - Geely Galaxy brand's sales reached 548,408 units in the first half, a significant 232% year-on-year increase, with the pure electric model Geely Xingyuan becoming the top-selling model in the Chinese passenger vehicle market[208] - Zeekr Technology Group's total revenue reached RMB 49.5 billion, a 2.5% year-on-year increase; gross margin for vehicle sales business was 16.9%, up 4.1 percentage points year-on-year, and overall gross margin reached 19.7%, up 1.3 percentage points year-on-year[211] - Geely Auto Finance's net profit for the first half was RMB 417 million, a 38% year-on-year decrease, while new contract volume for new energy vehicle business reached 160 thousand units, a 128% year-on-year increase[214] - Hao Si Power achieved revenue of RMB 47.113 billion and net profit of RMB 966 million in the first half, with engine and transmission sales reaching 2.23 million units and 1.89 million units, respectively[215] Exports In the first half of 2025, the company's export sales decreased by 8% to 184.11 thousand units; Geely brand actively expanded new energy vehicle overseas sales, with Geely International EX5 entering 25 countries, and the company accelerated global market expansion and localized production through collaborations with Renault Brazil, Proton, and Renault Korea - In the first half of 2025, the company's export sales reached 184,114 units, a 8% year-on-year decrease, accounting for 13% of total sales[216] - Geely brand's new energy vehicle export sales reached 40,458 units, a 146% year-on-year increase, accounting for 22% of export sales[174] - Geely brand's pure electric SUV, Geely International EX5, has successfully entered 25 overseas countries and ranked first in sales among all brands in the pure electric compact SUV segment in Costa Rica[216] - By injecting capital into Renault Brazil and acquiring a 21.29% equity interest, the company aims to leverage Renault's local production footprint and extensive dealer network in Brazil to accelerate market expansion[217] - In collaboration with Proton, the first pure electric vehicle, e.MAS 7, was launched, becoming the top-selling pure electric model in Malaysia with sales exceeding 4,000 units in the first half[219] Outlook The company will maintain financial prudence, advance its new energy and intelligent strategy, achieve cost control and profitability through scale, accelerate mainstream new energy vehicle exports in the second half, and raise its full-year sales target to 3 million units, while fully pursuing Zeekr's privatization to implement the 'One Geely' strategic integration, covering various power forms, and enhancing overall competitiveness and enterprise value - The company will continue to adhere to a financially prudent operating policy, address challenges in the industry's high-quality development, and firmly advance its new energy and intelligent strategy[220] - More new energy vehicle models will be launched in various international markets in the second half, with a commitment to building a comprehensive global supply chain system and localized production capacity layout[221] - The company has raised its full-year sales target from 2.71 million units to 3 million units, demonstrating management's confidence in future development[221] - The company will fully advance the privatization of Zeekr, implement the 'One Geely' strategic integration, and strengthen the Group's synergies and competitiveness in the smart electric vehicle sector[221] Capital Structure and Financial Policies The company primarily meets short-term working capital needs through operating cash flow, bank loans, and supplier credit, and funds long-term capital expenditures through operating cash flow, bank borrowings, and capital market fundraising; as of June 30, 2025, equity attributable to owners of the parent was approximately RMB 89.6 billion - The company primarily meets its short-term working capital requirements through its own operating cash flows, short-term bank loans from commercial banks in the PRC and Hong Kong, and supplier credit[222] - Long-term capital expenditures (including product and technology development costs and investments in the construction, expansion, and upgrade of production facilities) are funded by a combination of operating cash flows, bank borrowings, and fundraising activities in the capital markets[222] - As of June 30, 2025, equity attributable to equity holders of the company was approximately RMB 89.6 billion, an increase from RMB 86.5 billion at December 31, 2024[222] Foreign Currency Exchange Risk The company's primary business is RMB-denominated, but export operations are USD-denominated and exposed to emerging market currency fluctuations; the company hedges some risks with forward foreign exchange contracts and increases local currency cost ratios in overseas production to enhance natural hedging, with management closely monitoring market conditions and evaluating hedging strategy effectiveness - The company's principal business is denominated in RMB, but most export business is denominated in USD, with exposure to multiple emerging markets[223](index=223