Geely Automobile, one of the leading players in China’s competitive electric vehicle (EV) sector, has reported remarkable financial results for the year 2024, highlighting significant growth amid robust sales and successful export strategies.
On March 20, 2025, the Chinese automaker announced that its net profit surged by 213%, reaching 16.63 billion yuan (approximately $2.30 billion), showcasing the company's financial resilience and growth trajectory. This remarkable increase in profit reflects the company's strong operational strategies and heightened sales performance, particularly in international markets. Geely's revenue also experienced notable growth, climbing 34% to 240.19 billion yuan, fueled by rising demand and effective cost management.
Vehicle sales were a driving force behind these impressive results, as Geely reported a total sales volume increase of 32%, amounting to 2.1 million units sold across various brands, including its burgeoning Zeekr line. The Zeekr Group specifically saw its vehicle deliveries skyrocket by 87%, totaling 222,123 units, which significantly contributed to reducing its net loss to 6.42 billion yuan from 8.35 billion yuan the previous year. According to Geely, the company's total export wholesale volume reached a record high of 414,522 units, indicating a 57% year-on-year increase in exports, bolstering its market position internationally.
In terms of profitability metrics, Geely's gross profit margin improved by 0.6 percentage points, rising to a commendable 15.9%. This uptick is significant as it reflects improved economies of scale, better product mix offerings, and stringent cost controls that the company has put into action over the past year. "We are seeing stable demand for both our electric and combustion engine vehicles," said a company spokesperson, reflecting optimism about future sales.
As Geely looks ahead, the company has set an ambitious sales target for 2025, aiming to hit 2.71 million units, representing a 25% increase from the previous year. However, the automotive landscape remains fiercely competitive, and the company foresees intensified rivalry, especially in technology and pricing as the industry evolves. CEO Li Shufu emphasized the importance of remaining adaptable and innovative to maintain Geely's market share in the ever-competitive EV sector.
In a move to reward shareholders, Geely also announced a final cash dividend of HK$0.33 per share, which marks a 50% increase from last year and reinforces the company’s commitment to returning value to its investors. This dividend payout will be effective following shareholder approval on May 30, 2025, and is planned for distribution on July 25, 2025. The total capital expenditures for the year amounted to 13.31 billion yuan, which Geely aims to raise to 15 billion yuan in 2025, focusing on bolstering its research and development efforts, particularly in electrification and smart vehicle technology.
Even amidst growing challenges such as trade barriers and tariff fluctuations, Geely has managed to maintain strong growth, with contributions from key stakeholders within the company, notably one group under the control of CEO Li Shufu contributing 28 billion yuan to the company’s revenue, showcasing both confidence and investment in its future.
In summary, Geely's financial report for 2024 not only illustrates a robust comeback from the disruptions of recent years but also sets a promising tone for its strategic direction in the automotive sector. The company’s focus on EV technology and expanding into international markets positions it well as it navigates challenges, aiming for continued growth and profitability in the years to come.
