Core Viewpoint - The Chinese new energy vehicle (NEV) industry is approaching a critical turning point as the exemption policy for NEV purchase tax is set to decline next year, leading to intensified competition between NEVs and traditional fuel vehicles [2][3]. Group 1: Industry Competition - The automotive industry is expected to enter a more competitive phase, with companies needing strong profitability to survive [2][3]. - The upcoming competition is described as a "淘汰赛" (elimination match), emphasizing the importance of profitability as the ultimate measure of success [3]. Group 2: Company Strategy - Geely has been integrating internal resources and emphasizing a unified strategy to enhance efficiency and reduce internal consumption [3]. - The company aims to complete the privatization merger of its brand Zeekr, with legal barriers removed and pending only ODI approval [3]. Group 3: Financial Performance - Geely's management expense ratio decreased from 2.4% to 1.8% year-on-year, with a notable drop to 1.5% in Q3 [3]. - R&D expenditure as a percentage of revenue fell from 7.2% to 6.1%, attributed to improved efficiency through platform integration [3]. - The profit growth rate (25% quarter-on-quarter) outpaced revenue growth (15% quarter-on-quarter) and sales growth (8% quarter-on-quarter) [4]. Group 4: Product and Sales Performance - The average selling price (ASP) of vehicles increased from 93,000 to 105,000, contributing to improved profitability [5]. - The core net profit per vehicle rose to approximately 5,200 yuan, a 16% increase from the first half of the year [5]. - Geely's fuel vehicle sales grew by 6.2% year-on-year, while NEV sales surged by 114%, exceeding the industry average growth rate by 33% [5][6]. Group 5: Global Expansion - Geely's NEV exports increased by 66% quarter-on-quarter, with expectations of 410,000 units for the year and a projected growth of 50%-70% next year [7]. - The overseas market is anticipated to become a significant profit growth driver, with net profit margins in international markets ranging from 5% to 10%, higher than domestic margins [7]. Group 6: Future Outlook - Geely plans to launch over 10 new models next year, indicating a continued focus on product development [6]. - The company is preparing for a competitive landscape where financial metrics, cost control, and cash flow will be critical for survival [7].