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Smart people will choose to plant trees in an era of planting grass, because you believe that the trees you plant can become friends of time. This is a difficult road to take, but it is the most correct choice.

The "trees" that Geely Auto once planted are beginning to bear abundant fruits.

Revenue increased by 46.63%, net profit increased by 575%, operating profit increased by 668.09%... Judging from the overall growth rate of revenue and sales in the first half of 2024 financial report, Geely Auto was not disturbed by the "involution" environment, but instead achieved a counter-trend rise.

In fact, Geely has been making steady progress throughout the first half of the year. Since the beginning of the year, sales in January reached 213,000 vehicles, a year-on-year increase of about 110%, even surpassing BYD; sales in February reached 111,400 vehicles, a year-on-year increase of 3%... Geely Auto achieved 50.3% of its annual sales target in the first half of the year, while BYD achieved 44.7%.

Gui Shengyue, CEO and executive director of Geely Auto, said, "These achievements at least show that we are making progress and are implementing the strategic plan we talked about a few years ago step by step."

The jade is perfect, and the stream reaches the four seas.

Earlier, Li Shufu, Chairman of Geely Holding Group, stressed that Geely must "seek progress in stability" in 2024. Obviously, the report card handed in by Geely Auto today has achieved both "stability" and "progress", and more powerful potential energy is also waiting to be released in the accumulation.

New energy chasing the rise

Grove, the founder of Intel, once said: "If you want to understand a company's strategy, look at what they actually do, not just what they say. The priority of resource allocation determines where the strategy will go."

It can be said that Geely Auto Group's strategy and layout for new energy transformation have never been so clear as they are today. After early exploration and "laying the foundation", Geely has finally entered the "harvest period" of new energy strategic transformation.

Gui Shengyue said that Geely's confidence in seeing the "dawn" mainly comes from two aspects: on the one hand, the strong growth momentum of sales, and on the other hand, new energy.

Currently, Geely’s new energy brands cover luxury, mid-to-high-end, and popular categories, achieving full coverage of consumer groups. As long as there is demand, there are products to meet it, and it has taken root in different market segments.

The financial report shows that in the first half of 2024, Geely's new energy products (including Geely, Lynk & Co, and Zeekr) achieved a high growth rate of 117% with sales of 320,000 vehicles, far exceeding the overall level. Based on the continuous growth in sales of new energy products, its penetration rate has increased from 21.8% in the same period last year to 33.5%, and has continued to grow year-on-year and month-on-month for three consecutive months this year, ranking in the first echelon of new energy brands. As of July, Geely Auto's new energy penetration rate has reached 40%, setting a new high for the year.

The most representative of these is Geely Galaxy.

As a mid-to-high-end new energy vehicle series under the Geely brand, Geely Galaxy has been launched for more than a year and has continuously subverted the outside world's perception of it with its high-efficiency new product launch speed and terminal performance. In the first half of the year, the cumulative sales of Geely Galaxy series reached 81,000 units, a year-on-year increase of 742%, and the average monthly sales exceeded 10,000.

Monthly sales of over 10,000 may rely on marketing, but average monthly sales of over 10,000 can only rely on real strength.

In addition to the development boundary of new energy vehicles broken by Geely Galaxy, Lynk & Co's new energy vehicle cumulative sales in the first half of the year reached 64,000 units, accounting for a record high of 50.9%. In the first half of the year, Zeekr delivered a total of 88,000 units, a year-on-year increase of 106%. Among them, Zeekr delivered 20,000 units in June, breaking the 20,000 mark for the first time in a single month, setting a record high.

According to the plan, six new energy products will be launched in the second half of this year. Gui Shengyue said that Geely Auto will soon regain its glory due to its strong leadership in the field of traditional fuel vehicles.

When the technology dividend begins to be released

Through Geely Auto’s first-half financial report, we can also see that it is constantly expanding its advantages and gathering momentum in many fields such as intelligence and electrification.

Data shows that Geely Auto's total R&D investment in the first half of the year increased by 17.9% year-on-year to 7 billion yuan. Geely Auto continues to consolidate its full-stack self-developed capabilities in core smart car technologies through technological innovation, accumulating momentum for future development.

From architecture, three-electric to intelligent, Geely has always firmly grasped the core technology, and its performance and standards are at the forefront of the industry. In fact, every strategic transformation along the way has won Geely by investing in technology first and then feeding back, which has brought about a high value leap.

In terms of intelligent driving, Zeekr's self-developed Haohan Intelligent Driving has obtained L3 autonomous driving test licenses in Shanghai and Ningbo, and the high-speed NZP function is available nationwide. Lynk & Co's high-precision maps cover all areas of the country except Hong Kong, Macao and Taiwan, and high-speed and elevated NOA have been installed in vehicles. In terms of smart cockpits, Geely Auto released the "Flyme Auto" smart cockpit system jointly created by Xingji and Meizu. In the field of artificial intelligence, the self-developed basic model with Geely Xingrui Intelligent Computing Center as the computing power base, Geely Xingrui AI Big Model was officially released, and Geely became the first car company in the industry with the full system capability of "using AI architecture to build AI cars". China's first self-developed 7nm smart cockpit chip "Longying No. 1" is used in many models.

Core technologies such as the Aegis Dagger battery, Galaxy 11-in-1 intelligent electric drive and GEA global intelligent new energy architecture have achieved breakthroughs in safety, durability, efficiency and intelligence.

What is even more valuable is that these technologies have been truly popularized among users.

In the general public's impression, products that integrate a company's most powerful technologies are usually the company's flagship or high-end models. However, on a 100,000-level Galaxy E5, there are so many of Geely's latest and most cutting-edge technologies.

Geely Galaxy E5 ranks first in its class in terms of safety, space, driving control, energy consumption and cockpit, completing Geely's "May Day Project".

"Geely has been preparing for the Galaxy E5 for a long time. We have put all of Geely's best current technologies into this mainstream A-class pure electric SUV." Gan Jiayue, CEO of Geely Auto Group, said that the Geely Galaxy E5 is equipped with many leading technologies, including the native GEA pure electric architecture, CTB battery-body integration technology, G-TCS all-weather anti-skid system, etc., making it a qualified "hexagonal warrior" in the 100,000-level A-class SUV.

As Geely's new energy main line logic becomes increasingly clear, each brand will continue to leverage Geely's scale effect and system advantages through technology empowerment, infrastructure development and application, and collaborative cooperation in supply chain and manufacturing.

This will also become Geely Auto's strongest hematopoietic ability.

Global Dimensional Value Advancement

The domestic product matrix has been further expanded horizontally, and Geely Auto's overseas presence has also continued to expand.

In the first half of this year, Geely Auto's cumulative export sales reached 197,000 units, up more than 67% year-on-year, outperforming the market by 31%. Sales in Africa and Latin America increased significantly. Gan Jiayue revealed that Geely Auto will continue to activate potential markets such as Mexico and the five Central Asian countries, rapidly expand into emerging markets such as Vietnam, Australia, New Zealand, and Indonesia, and promote the development of international business through multiple means.

The strong performance in overseas markets has more concretely allowed the outside world to see Geely Auto's strong profitability.

The gross profit of overseas export products is higher than that of the domestic market. The overseas sales of nearly 200,000 vehicles in the first half of the year further increased Geely Auto's gross profit margin. The profit attributable to shareholders in the first half of the year was RMB 10.6 billion, a year-on-year increase of 575%.

With the scale effect and continuous optimization of product structure, Geely Auto's gross profit margin is likely to further improve and expand its profit margin. Geely Auto's deputy CFO Dai Yong also said that with the high-quality development of Geely Auto, it plans to maintain a steady and rising dividend ratio in the future, and it is expected that the dividend ratio of operating profit will be maintained at more than 30% in 2024 and in the future.

As Gan Jiayue emphasized in his New Year's message on the first day of work: Geely will firmly adhere to the concept of "making smart boutique cars for everyone" and continue to create high-value smart products for users.

Under the "dragon-slaying sword" of price wars, Geely's strategy has always been to bring users higher car value. Relying on system advantages such as technological iteration and scale, combined with the current environment, it allows consumers to obtain certainty and even exceed expectations of service experience amid many uncertainties. This is precisely what best reflects high value besides price.

This is the gene of Geely's entire life cycle - subtracting from product prices and adding to product value. With such persistence and development momentum, Geely may no longer need to benchmark against other competitors in the future, because water never competes for the lead, but always for continuous flow.