2025-08-18 01:00Summary of Geely Automobile Conference Call Company Overview - Company: Geely Automobile - Industry: Automotive, specifically focusing on electric and hybrid vehicles Key Points and Arguments Financial Performance - In Q2, Geely achieved an operating profit of 285 million RMB, marking the first positive result, although the total loss for H1 was 774 million RMB [2][3] - Gross margin improved to 20.5%, with Zeekr brand's vehicle gross margin around 21% and Lynk brand's margin increasing from 11.1% in Q1 to 14% in Q2 [2][3] - The net loss for H1 was approximately 1.1 billion RMB, significantly reduced from 7.7 billion RMB in the previous year [3] Product Development and Launches - Geely plans to launch several new models in H2, including the Lynk 10 and various updated models (07, 08, 01, 09) focusing on smart technology and electric systems [2][5][7] - The Zeekr brand will introduce the 9X series, utilizing super electric hybrid technology and a 900V platform, marking a significant technological upgrade [2][6] - The new Galaxy series will also be launched, emphasizing smart technology across all sub-brands [2][7] Sales and Market Strategy - Geely's H1 export volume was 184,000 units, a 7.7% decline year-on-year, but other markets saw over 40% growth [2][8] - The company expects a minimum 30% increase in export volume in H2 compared to H1, with a year-on-year growth of 20-30% compared to last year [2][8] - The target for H2 is to sell nearly 80,000 new energy vehicles, aiming for a 90% increase [4][9] Cost Management and Efficiency - The merger of Zeekr and Lynk has led to significant cost reductions, with R&D expenses decreasing from 2.9 billion RMB in Q1 to 2.1 billion RMB in Q2 [3] - The company aims to continue optimizing costs through further synergies and integration [3] Technological Advancements - Geely is focusing on AI integration across all vehicle systems, enhancing self-driving, cabin experience, chassis, and power systems [4][17] - The company has developed a comprehensive AI strategy, including a significant increase in computing power for autonomous driving solutions [14][15] Future Outlook - Geely believes all product lines are now profitable, indicating a strong competitive position in the market [13] - The company is prepared to adapt to market changes, including potential policy shifts affecting the electric vehicle sector [25] Geopolitical Considerations - Geely is taking a cautious approach to international expansion, leveraging partnerships to mitigate risks associated with geopolitical changes [10] Taxation and Financial Management - The increase in tax expenses in Q2 was attributed to specific financial reporting details, including dividend distributions [11][12] Additional Important Insights - The Lynk 900 model has significantly boosted the brand's profitability and market image [5] - Geely's platform architecture is a core advantage, enabling the development of multiple brands and models efficiently [21] - The company is committed to maintaining a strong presence in both electric and hybrid vehicle markets, with advanced technologies driving future growth [22][23]