2025-08-24 14:47Summary of Geely Automobile Conference Call Company Overview - Company: Geely Automobile - Period: First half of 2025 Key Points Sales and Financial Performance - Geely's sales reached 1.41 million vehicles in the first half of 2025, with operating profit of approximately 3.1 billion RMB in Q2 and a total of 6.6 billion RMB for the first half, meeting market expectations [2][13] - The company raised its full-year sales forecast to 3 million vehicles, expecting an operating profit of 14 billion RMB, driven by new model launches and high-end product releases in the second half [2][14] Market Position and Growth - Despite a shrinking market for fuel vehicles, Geely achieved growth, becoming the top-selling brand in the domestic fuel vehicle segment, with exports expected to reach 450,000 vehicles, 20% of which are to the Russian market [2][4] - The Galaxy series products, particularly the Galaxy M9, exceeded expectations with over 40,000 orders in 24 hours, indicating strong market acceptance of high-end products [3][9] Product Strategy and New Releases - Geely launched several high-end SUVs, including the Galaxy M9, Lynk & Co 900, and Zeekr 9X, targeting different price segments [2][9] - The company plans to integrate Zeekr and Lynk & Co to streamline costs, with Zeekr achieving profitability in Q1 2025 [2][10] Sales Performance of Key Models - The Wish model saw sales rise to 40,000 units in June 2025, while the Galaxy E5 maintained monthly sales of 13,000 to 15,000 units [8] - The Starry 8, a B-class plug-in hybrid positioned at A-class pricing, achieved monthly sales exceeding 10,000 units [8] Resource Integration and Cost Management - Geely's integration of Zeekr and Lynk & Co has led to cost reductions through streamlined processes and procurement [10] - The company plans to fully incorporate Zeekr into the listed entity by September 2025 to further reduce costs [10] Electric Vehicle Progress - In Q1 2025, Geely sold 340,000 new energy vehicles, with 240,000 being pure electric and 100,000 plug-in hybrids; Q2 sales increased to 386,000 [12] - The Galaxy series accounted for 40% of total sales in Q2, with five new models expected to launch this year [12] Future Outlook - Geely anticipates launching over five new Galaxy series models in 2026, aiming for annual sales exceeding 1 million vehicles [15] - The company is positioned for growth in electric, high-end, and global markets, with a favorable long-term outlook [15] Valuation - Based on the forecasted operating profit of 14 billion RMB, Geely's current valuation is approximately 12 times this figure, with positive market sentiment regarding its future performance [16]