Geely Auto's Q1 revenue increased by 56%, net profit doubled, ZEEKR's deliveries surged by 117% year-on-year | Financial Report Insights

On June 28, Geely Auto, listed on the Hong Kong Stock Exchange, released its financial report for the first quarter of 2024.

The report shows that the company achieved a revenue of RMB 52.315 billion during the reporting period, a year-on-year increase of 56%; net profit was RMB 1.561 billion, a year-on-year increase of 119%, compared to RMB 714 million in the same period last year.

In the first quarter, the gross profit reached RMB 7.15 billion, a year-on-year increase of 51%. As of March 31, 2024, Geely Auto's total cash level reached RMB 39.4 billion.

In terms of car deliveries, Geely Auto sold 475,700 vehicles in the first quarter, a 49% increase from 318,200 vehicles in the same period last year. 41% of the planned annual sales target of 1.9 million vehicles has been achieved, with Geely sales exceeding 380,000 vehicles and Lynk & Co selling over 20,000 vehicles in May. The report indicates that the growth in revenue and sales volume is mainly due to the optimization of product structure.

Geely Auto has made significant progress in optimizing its product structure and launching new models. In the field of new energy vehicles, the total sales volume of Geely, Lynk & Co, and ZEEKR reached 254,226 vehicles, a year-on-year increase of approximately 126%.

ZEEKR, a brand under the company, performed particularly well, with a significant increase in sales volume of 117% in the first quarter, reaching a total delivery of 33,000 vehicles. It secured the top spot in China's pure electric vehicle sales above 200,000 RMB in 2024; revenue increased by 71% year-on-year. The gross profit margin reached 12.3%, up 3.4 percentage points from the same period last year.

In terms of other expenses, the company's sales cost was RMB 45.168 billion, a 57% increase year-on-year; distribution and sales expenses were RMB 3.389 billion, a 54% increase year-on-year; and administrative expenses were RMB 3.062 billion, a 33% increase year-on-year.

Furthermore, the company's net other income for this quarter was RMB 0.526 billion, a 168% increase compared to RMB 0.196 billion in the same period last year.

The company's management stated that they will continue to promote technological innovation and market expansion to further increase market share. In the future, the company plans to increase research and development investment and introduce more high-performance and intelligent new models.

As of the close of trading on June 28, Geely Auto fell by 1.24% on the Hong Kong Stock Exchange, with a latest stock price of HKD 8.79, and a total market value of approximately HKD 88.457 billion