

Core Viewpoint - Geely Automobile reported significant growth in Q1, with revenue and net profit both increasing year-on-year, particularly a more than twofold increase in net profit, driven by record sales and robust performance in the new energy sector [1][2][7]. Financial Performance - Q1 revenue reached 72.95 billion yuan, a 25% increase from the previous year [2][3]. - Pre-tax profit was 66.83 billion yuan, showing a 324% year-on-year growth [2][3]. - Net profit attributable to shareholders was 56.72 billion yuan, up 264% from 15.60 billion yuan in the same period last year [2][3]. - Gross profit totaled 114 billion yuan, with a gross margin of 15.8% [2][3]. Sales and Market Performance - Total vehicle sales reached 703,800 units in Q1, marking a 48% increase year-on-year and setting a new historical high [7][8]. - New energy vehicle sales, including brands like Geely, Lynk & Co, and Zeekr, amounted to 339,000 units, with the Galaxy brand alone selling 260,000 units, a 214% increase [8][10]. New Energy Business - The new energy business showed significant improvement in profitability, with scale effects contributing to the substantial increase in overall net profit [10]. - R&D expenses for Q1 were 33.28 billion yuan, a 24.6% increase, indicating continued investment in technology [10]. Zeekr Performance - Zeekr, a key subsidiary of Geely, reported a total revenue of 22 billion yuan in Q1, with vehicle sales revenue of 19.1 billion yuan, a 16.1% year-on-year increase [11]. - The gross margin for vehicle sales was 16.5%, up 3.4 percentage points year-on-year, while the overall gross margin reached 19.1%, the highest in history [11][12]. Strategic Developments - Geely completed the acquisition of a controlling stake in Lynk & Co in February, transitioning it from a joint venture to a non-wholly owned subsidiary, enhancing competitive positioning in the luxury and high-end market [14][15][17]. - The acquisition allows for better resource integration and strengthens synergies with Volvo [17]. Challenges - Despite strong performance, Geely faces challenges with net current liabilities increasing to 11.25 billion yuan from 10.82 billion yuan at the end of the previous year [19][20]. - The board believes that this will not significantly impact the company's ongoing operations due to stable cash flow and good relationships with financial institutions [20].