Shanghai (ZXZC)- Geely Automobile Holdings Limited ("Geely Automobile" or "the Group") announced on Wednesday its interim financial results for the first half of 2024, revealing impressive growth despite a challenging market environment.

During this period, the Group's total revenue surged by 46.6% year on year to RMB107.3 billion. Meanwhile, its profit attributable to equity holders soared by 574.7% to RMB10.6 billion, resulting in diluted earnings per share of RMB1.04.

Thanks to the substantial impact of scale efficiency and optimized product structure during the reporting period, the Group's total gross profit surged to RMB16.2 billion, resulting in a gross profit margin of 15.1%.

A key highlight of this period was the Group's strategic contribution of assets to Horse Powertrain Limited, a joint venture, alongside a valuation adjustment for the partial disposal of this entity. This move resulted in a one-off net gain of RMB7.47 billion.

The Group said in response to a slowdown in China's passenger car market growth and intensifying price competition, Geely adopted a strategy of "striving for progress while maintaining stability." This approach emphasized the parallel development of internal combustion engine (ICE) vehicles and new energy vehicles (NEVs), leveraging the Group's recent successes in electrification:

(1) Optimization of ICE vehicle lineup: The Group streamlined its ICE vehicle offerings, focusing on popular models to maintain market leadership and capture higher market share.

(2) Expansion of NEV Portfolio: Geely introduced a range of NEV products, targeting various market segments to broaden its reach.

(3) Acceleration of Globalization: The Group intensified its efforts in overseas markets to enhance international competitiveness.

Photo credit: Geely Automobile

This strategic framework drove the Group's sales performance beyond management's expectations, achieving a record high in the first half of 2024. In this period, the Group's total sales volume reached 955,730 units, marking a 41% year-on-year spike. This figure includes sales from the Group’s 50%-owned joint venture, LYNK & CO Automotive Technology Co., Ltd. In the Chinese market alone, Geely Automobile sold 758,302 vehicles, a 35% year-on-year leap, capturing a market share of 6.96% and securing the No. 2 spot among indigenous brands. Notably, the Group also achieved a breakthrough in overseas markets, with export sales shooting up 67% to 197,428 units.

Under the balanced development strategy, Geely Automobile's sales volumes of ICE vehicles, plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) in the first half of 2024 were 635,545 units, 130,238 units, and 189,947 units, respectively. These figures represent year-on-year increases of 20%, 489%, and 51%, aligning with the Group's goals for steady progress.

Buoyed by its robust sales performance, the Group raised its annual sales target on July 1, 2024, from 1.9 million units to 2 million units.

As of June 30, 2024, the Group's financial position remained solid, with a cash reserve of RMB44.4 billion, up from RMB38.0 billion at the end of December 2023. The Group generated RMB14.2 billion in net cash from operating activities during the first half of the year, benefiting from increased sales volume and an improved gross margin. Besides, the Group’s total capital expenditures amounted to RMB7 billion, driven by heightened investment in research and development as it accelerated its transition to electrification and intelligentization.