Core Viewpoint - The Chinese automotive market is undergoing significant structural adjustments, with a notable rise in new energy vehicle sales, which accounted for 44.3% of total new car sales in the first half of 2025. Despite intense competition, Geely Auto has successfully navigated these challenges by promoting a "anti-involution" strategy, focusing on quality growth rather than price wars [1][2][23]. Industry Overview - In the first half of 2025, China's automotive production and sales reached 15.62 million and 15.65 million units, respectively, with new energy vehicles (NEVs) producing 6.97 million and selling 6.94 million units [1]. - The overall market is experiencing fierce competition, but Geely Auto has differentiated itself by emphasizing long-term strategies and comprehensive strength [1][2]. Company Performance - Geely Auto reported a record revenue of 150.3 billion yuan in the first half of 2025, a 27% year-on-year increase, with a core net profit of 6.66 billion yuan, reflecting a 102% growth [3]. - The company's total sales reached 1.409 million units, with NEVs accounting for 51.5% of total sales, marking a 126% increase year-on-year [3][5]. - Geely has raised its annual sales target from 2.71 million to 3 million units based on strong first-half performance [3]. Brand Performance - Geely's various brands have contributed to a robust sales structure, with Geely Galaxy achieving sales of 548,000 units, a 232% increase [5]. - Zeekr brand sold 90,700 units in the first half, while Lynk & Co sold 154,000 units, showcasing strong market performance across different segments [7][11]. Cost Management and Efficiency - Geely has effectively controlled costs, with R&D expenses decreasing to 4.9% of revenue and sales and management expenses down to 5.6% [11]. - The integration of Zeekr and Lynk & Co has led to significant technical synergies, enhancing operational efficiency [11]. Technological Advancements - Geely is investing heavily in technology, particularly in smart electric vehicle systems, with breakthroughs in autonomous driving technology [12][14]. - The company has established a new battery division, enhancing safety and performance in its electric vehicle offerings [16]. Global Expansion - Geely's global strategy is expanding, with over 180,000 units exported in the first half of 2025 and a growing presence in 85 countries [17][20]. - The company is focusing on high-value exports and local production, with new factories in Egypt and Indonesia supporting its international operations [17][22]. Conclusion - Geely Auto's mid-year performance reflects its commitment to the "anti-involution" strategy, with significant revenue growth and an increased sales target. The company's focus on technology, quality, and global expansion positions it well for future growth in the competitive automotive landscape [23].

Core Insights - Geely Galaxy A7 aims to redefine the standards and value points of hybrid electric sedans with a starting price of 81,800 yuan and a comprehensive range exceeding 2,100 kilometers [2][4] - The vehicle features a low fuel consumption of 2.47L per 100km, positioning itself as a competitive option against traditional fuel-efficient cars like the Toyota Prius [4] - The A7's strategy focuses on high configuration at a low price, offering seven variants that cover both 70km and 150km pure electric ranges [2][4] Energy Efficiency - The Galaxy A7 is equipped with the Thor AI Hybrid 2.0 system and boasts the world's highest thermal efficiency of 47.26% for its hybrid engine, achieving a fuel consumption of 2.47L per 100km [4] - The vehicle has demonstrated a real-world range of over 2,100 kilometers, achieving a 104.78% success rate even under high-temperature conditions in Xinjiang [4] Space and Comfort - With a length of 4,918mm and a wheelbase of 2,845mm, the A7 offers B-class dimensions and C-class experience, featuring a rear legroom of 950mm and a maximum expandable trunk capacity of 988L [4] - The vehicle includes 10-layer cotton candy seats and 14-point SPA massage functionality, enhancing comfort for families with children, pets, or luggage [4] Intelligent Features - The Galaxy A7 introduces the Flyme Auto system and the Qianli Haohan H3 driver assistance scheme, featuring 23.5 EFLOPS computing power, voice blind operation, and support for advanced navigation and parking assistance [4] - It includes the unique AES automatic evasion feature, making it stand out in the hybrid sedan market for its intelligent configurations [4] Market Positioning - The A7 represents Geely's strategic entry into the mainstream hybrid sedan market, aiming to compete with popular models like Wuling Xingguang and Qin L [7] - The Galaxy series has seen rapid sales growth, with over one million units sold in two years, primarily in the SUV and mid-to-high-end sedan segments [7] - The A7's aggressive pricing and feature-rich offering reflect a shift in Geely's approach to value perception in a competitive market [7]

Core Viewpoint - Polestar's termination of its joint venture with Geely's Meizu marks a significant shift, indicating a potential exit from the Chinese market due to poor performance and strategic misalignment [1][2]. Group 1: Company Performance - In 2024, Polestar's sales in China were only 3,100 units, plummeting to 119 units in January-February 2025, far below Geely's expectations [3]. - Polestar's global sales reached 12,304 units in Q1 2025, a 76% year-on-year increase, primarily driven by the European market, which accounted for nearly 70% of total sales [3]. - The company's net loss expanded to $541 million in the first half of 2024, with cumulative losses exceeding $2 billion, and its stock price has fallen by 90% since its IPO, leading to multiple delisting warnings from Nasdaq [3]. Group 2: Strategic Challenges - Polestar's product lineup is limited, with only two models available, and its pricing does not compete effectively with brands like NIO and Li Auto [1]. - The company has faced significant management instability, with seven different heads for the China region in eight years, leading to a lack of strategic continuity [1]. - Geely has been consolidating its brands, closing underperforming ones and reallocating resources to more promising brands like Zeekr and Galaxy, further marginalizing Polestar [3][4]. Group 3: Future Outlook - Polestar plans to launch the four-door GT model Polestar 5 and the compact SUV Polestar 7 in late 2025, aiming for an annual sales growth of 30%-35% [4]. - However, the company’s product iteration speed lags behind Chinese competitors, and its brand recognition outside Europe is weak, raising doubts about its ability to reverse its current decline [4]. - If Polestar fails to solidify its position in the European market and achieve profitability by 2025, it may face severe survival challenges [4].