• Geely Auto 2018 revenue reached RMB106.6 billion, a 15% year on year increase
• Total profit grew to RMB12.67 billion, an 18% year on year increase
• NEV sales increased to 67,069 units, a 165% year on year increase.
• Market share in China grew from 5.0% in 2017 to 6.2% in 2018
21st March 2019, Hong Kong. Geely Automobile Holdings (Geely Auto) the listed arm of Geely Auto (00175HK), today announced its 2018 financial results.
During the year, Geely Auto total revenue increased by 15% to RMB106.6 billion as the group’s average selling price continued to improve, mainly driven by the improvement in product mix (ie. Increased proportion of higher-priced models). Total net profit of the group grew 18% from RMB10.74 billion in 2017 to RMB12.67 billion in 2018 due to the increase in overall sales volume, higher average selling price, and improved profit margin during the year. After accounting for non-controlling interests, the net profit attributable to shareholders was up 18% from RMB 10.63 billion in 2017 to RMB12.55 billion in 2018. Diluted earnings per share was up 18% to RMB1.37.
Geely Auto (including the sales volume of “Lynk & Co” vehicles sold by Geely Auto’s 50%-owned joint venture) sold a total of 1,500,838 units, an increase of approximately 20% from 2017. In addition, Geely Auto’s market share in China’s passenger vehicle market increased from 5% in 2017 to 6.2% in 2018, making the group the third largest passenger vehicle brand in China and largest Chinese passenger vehicle brand in the world.
Geely Auto Breakdown
The Geely Auto brand continues to excel in China with it becoming the best-selling domestic Chinese brand in 2018. Geely Auto’s strategy of jointly developing its sedan and SUV product portfolio is continuing to be a success.
The introduction of Geely’s third generation of vehicles in 2016 has continued to be a success with 55% of sales coming from new products. Geely Auto branded vehicles priced from 80,000RMB to 150,000RMB accounted for over 61% of sales.
Geely Auto’s sales network continues to expand with nearly one thousand dealers across China each selling an average of 1450 units per year, an increase of 10%. Over 200 potential dealers are waiting to be approved to join the Geely Auto dealership network in 2019 of which 45% have experience in operating international brands.
LYNK & CO Breakdown
In the first full year of operation, Geely Auto’s premium brand LYNK & CO sold a total of 120,414 units. As new models such as the 02 crossover and 03 sedan were launched over the course of the year, LYNK & CO has become a serious contender in the Chinese premium segment.
Over 80% of the sales of the 01 SUV are for higher specification models with 45% of customers changing vehicle to buy the 01 or are adding a car to their fleet of which 65% are exchanging from a global brand. Sales figures for the 02 Crossover show that 80% of customers are opting for higher specification vehicles whilst 70% of 03 sedan sales are for higher models.
New Energy Vehicles
Over the course of 2018, Geely Auto sold a combined 67,069 electrified vehicles, up 165% from the previous year, which includes Battery Electric (BEV), Mild Hybrid (MHEV) and Plug-in Hybrid (PHEV) vehicles. Geely Auto’s electrified vehicle range includes the Emgrand EV450, Emgrand GSe, Bo Rui GE, and also the LYNK & CO 01 PHEV.
From 2019, Geely will significantly increase the proportion of new energy vehicles in its sales volume by further strengthen its new energy vehicle range with new models including the LYNK & CO 02 and 03 PHEV models and the creation of a new sales entity, Geely Geometry (Ji He) which will launch its first pure electric model “A”.
Geely Auto will continue to strengthen its brand image, network and supply chain over the course of 2019 with the launch of multiple new products including the brands first MPV, JiaJi which will be available as a new energy and traditional ICE vehicle and the Xing Yue Crossover Coupe. A total of six new models will be introduced in 2019 with ten facelift models.
China’s passenger vehicle market experienced a 4% decline in 2018, after strong growth over the past several years. Despite the overall downward trend for China’s passenger vehicle market, Geely Auto continued to increase its market share and strengthen its position as the market leader. Given the prevailing uncertainties in China’s passenger vehicle market, Geely Auto has set its 2019 sales goal at conservative level of 1.51 million units, in line with the overall sales volume achieved in 2018.