Summary of Geely Automobile Conference Call Company Overview - **Company**: Geely Automobile - **Industry**: Automotive, specifically focusing on electric vehicles (EVs) and traditional internal combustion engine (ICE) vehicles Key Financial Metrics - **Sales Volume**: 2.17 million units in the first three quarters, a 46% year-over-year increase, surpassing the industry average growth rate of 14% [2][4] - **Market Share**: Increased to 10.2% in 2025, up from 8% in 2024 [11] - **Revenue**: Q3 revenue reached 89.2 billion RMB, a 27% year-over-year increase; total revenue for the first three quarters was 239.5 billion RMB, up 26% [2][4] - **Core Net Profit**: 3.96 billion RMB in Q3, a 19% year-over-year increase; cumulative core net profit for the first nine months was 10.62 billion RMB, up 59% [2][4][7] - **Gross Profit**: Q3 gross profit was 14.8 billion RMB, an 11% increase year-over-year, with a stable gross margin of 16.6% [2][7] Electric Vehicle Performance - **EV Sales**: 1.168 million units sold in the first three quarters, a 114% year-over-year increase; Galaxy series sales increased by 206% [2][5] - **Battery Sales**: 443,000 units sold in Q3, a 15% increase, with a penetration rate of 58% [5] - **Export Growth**: Q3 exports totaled 112,000 units, a 19% increase; cumulative exports reached 296,000 units, with EV exports up 24,018% [6][20] Cost Control and Profitability - **Cost Management**: Sales expense ratio decreased to 5.7%, and R&D expense ratio fell to 6.1% [7][14] - **Profit Margins**: Core net profit margin improved to 4.4% from 4.1% [7] Future Plans and Market Strategy - **New Model Launches**: Plans to introduce multiple new models in Q4, including compact plug-in hybrids and upgraded versions of existing models [3][9] - **Sales Target**: Aiming for 3 million units sold in 2025 [3] - **Global Expansion**: Continued focus on global market penetration, with plans to increase distribution network from 890 to 1,000-1,200 dealers [21] Industry Outlook and Policy Impact - **2026 Policy Changes**: Anticipated to drive a more mature automotive market; Geely expects minimal impact on profits due to strategic adjustments and new model launches [10][18] - **Market Concentration**: Increased market concentration with the top five manufacturers' market share rising from 38% in 2023 to 47-48% in 2025 [17] Technological Advancements - **Autonomous Driving**: Focus on enhancing autonomous driving technology, particularly in high-definition mapping and driver assistance features [22] - **Electric and Hybrid Technology**: Plans to upgrade electric motor and control systems to version 3.0, enhancing efficiency and performance [26] Challenges and Risks - **Market Competition**: The competitive landscape is expected to intensify, with smaller players likely to exit the market [10][16] - **Supply Chain Coordination**: Ongoing efforts to ensure the supply of components for high-end models amidst industry challenges [24] Conclusion Geely Automobile is positioned for significant growth in the EV market, with strong sales performance, effective cost management, and a clear strategy for future model launches and global expansion. The company is optimistic about navigating upcoming policy changes and market challenges while continuing to innovate in technology and product offerings.

Core Viewpoint - Dongfang Securities maintains a "Buy" rating for Geely Automobile, forecasting EPS for 2025-2027 to be 1.49, 1.75, and 2.12 RMB respectively, with a target price of 22.35 RMB (24.51 HKD) based on a PE average of 15 times for comparable companies [1] Sales Performance - In October, Geely's total sales reached 307,100 units, a year-on-year increase of 35.5% and a month-on-month increase of 12.5%, setting a new monthly sales record [2] - New energy vehicle sales for October were 177,900 units, showing a year-on-year growth of 63.6% and a month-on-month growth of 7.7% [2] - From January to October, total sales amounted to 2,477,300 units, reflecting a year-on-year increase of 44.3% [2] - The company is expected to outperform the industry average, with a strong likelihood of achieving its annual sales target of 3 million units [2] Brand Development - Geely's brand sales in October reached 245,500 units, a year-on-year increase of 43.9% and a month-on-month increase of 10.6% [3] - The Galaxy brand achieved sales of 127,500 units in October, marking a year-on-year increase of 100.8% and surpassing its annual sales target of 1 million units ahead of schedule [3] - The launch of new models, such as the 2026 Geely Xingyuan and Galaxy Xingyao 6, is expected to enhance the product matrix and contribute to future sales growth [3] - Geely signed an agreement with Renault to acquire 26.4% of Renault's Brazilian operations, which will facilitate the introduction of new energy vehicles in Brazil [3] Lynk & Co Brand Performance - Lynk & Co's sales in October reached 40,200 units, a year-on-year increase of 29.4% and a month-on-month increase of 22.2% [4] - The brand's weighted average price exceeded 200,000 RMB, with new energy vehicle sales accounting for 72.1% of total sales [4] - Key models such as Lynk & Co 900 and Lynk & Co 10EM-P have shown strong initial sales performance, indicating potential for future growth [4]