- 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.
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 Tugella 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.