Geely Automobile Holdings Ltd. Announces Robust 2025 Annual Results and Strategic Developments

Financial Highlights

• Sales Volume: Reached 3,024,567 units in 2025, a significant year-on-year increase of 39% over 2024.
• Revenue: Up 25% to RMB345.23 billion, reflecting strong demand and expanded product offerings.
• Profit for the Year: RMB16.63 billion, up 2% year-on-year. Profit attributable to owners of the parent was RMB16.85 billion, representing a slight increase.
• Gross Profit: RMB57.35 billion, with a gross margin of 16.6%, slightly higher than last year.
• Net Cash Generated from Operations: RMB47.3 billion, demonstrating robust operational cash flow.
• Total Cash Level: RMB68.2 billion as at year-end, a 46% increase from 2024.
• Proposed Final Dividend: HK\$0.50 per ordinary share (up 52% year-on-year).
• Net gain on deemed disposal of subsidiaries and partial disposal of a joint venture: Only RMB37.7 million in 2025 (RMB9.35 billion in 2024), indicating fewer one-off gains.

Strategic and Corporate Actions

• Privatisation of ZEEKR: Geely completed the privatisation of ZEEKR (previously listed ADRs on NYSE), issuing 777,228,611 ordinary shares as consideration. This transaction was accounted for using the pooling of interests method and forms part of a broader strategy to restructure and integrate resources across subsidiaries.
• Share Buy-back Programme: The Board approved a share repurchase programme of up to HK\$2.3 billion. In December 2025, Geely repurchased 22,434,000 shares for HK\$384.7 million, demonstrating management’s confidence in the company’s outlook and commitment to enhancing shareholder value.
• Dividends and Capital Structure: Geely’s dividend payments (final and special) and capital structure adjustments highlight a focus on rewarding shareholders and maintaining financial flexibility. The company redeemed all perpetual capital securities in December 2024, simplifying its capital structure.

Operational and Investment Updates

• R&D Investment: Geely invested RMB17.62 billion in R&D, up 29% year-on-year, focusing on intelligent NEV model development and related technologies. Capitalised product development costs increased to RMB13.98 billion.
• Launch of New NEV Products: The proportion of NEV sales volume increased to 56% of total sales, reflecting accelerated electrification and intelligentization transformation.
• Acquisition of LYNK & CO: ZEEKR paid RMB9.105 billion for LYNK & CO acquisition and an additional RMB367 million for capital subscription, strengthening Geely’s position in the NEV and premium segment.
• Total Borrowings: Increased significantly by 141% to RMB18.32 billion, mainly for the acquisition of LYNK & CO, ZEEKR privatisation, and other corporate purposes.
• Net Cash Position: Net cash (total cash less borrowings) increased 28% to RMB49.9 billion, maintaining strong liquidity.

Sustainability and ESG Achievements

• Carbon Emissions: Geely achieved a 25.5% reduction in lifecycle carbon emissions per vehicle compared to the 2020 base year, meeting its short-term sustainability target.
• ESG Recognition: Geely is the only automaker among the Hang Seng Corporate Sustainability Index constituents for three consecutive years and received an ‘AA’ MSCI ESG rating. The company was also included in S&P Global’s Sustainability Yearbook 2026 (Global) as the first and only Chinese automotive enterprise, receiving the “Industry Mover” award.

Financial Resources and Outlook

• Budgeted Capital Expenditures for 2026: RMB16 billion, mainly for new model R&D and upgrading production facilities.
• Issuer Credit Ratings: “BBB-/Negative” by S&P and “Ba1/Positive” by Moody’s, reflecting solid but cautious market confidence.
• Sales Target for 2026: 3.45 million units, aiming for a 14% increase and continued leadership in intelligent mobility.

Risk Management and Treasury

• Foreign Exchange Risk: Geely reported significant FX gains in 2025 due to currency stabilization in emerging markets and effective risk management. The company continues to hedge exposures through forward contracts and natural hedging via local production expenses.
• Credit and Liquidity Risk: Prudent management practices are in place, with cash placed only with creditworthy institutions and ongoing credit assessments for counterparties.

Corporate Governance and Shareholder Actions

• Dividend Recommendation: The directors have recommended a final dividend of HK\$0.50 per share, subject to shareholder approval at the AGM scheduled for 1 June 2026. The dividend will be paid in July to shareholders on record as at 22 June 2026.
• Share Register Closure: The register will be closed twice in 2026 for AGM and dividend entitlement purposes. Shareholders should note the deadlines for share transfers to qualify for voting and dividend rights.
• Audit and Compliance: The Audit Committee has reviewed the results. Geely complied with most Corporate Governance Code provisions, with minor deviations due to scheduling and business commitments (e.g., Chairman unable to attend AGM in person).

Potential Price-Sensitive Information

• Privatisation of ZEEKR and Restructuring: The privatisation and integration of ZEEKR, together with the acquisition of LYNK & CO, are potentially transformative for Geely’s business and may significantly impact future earnings and share value.
• Share Buy-back Programme: The repurchase of shares under uncertain market conditions signals management’s confidence in the company’s prospects and may positively affect share price.
• Dividend Increase: The substantial hike in the proposed dividend (HK\$0.50 per share, up 52%) is a strong signal to the market regarding Geely’s commitment to shareholder returns.
• Strong Cash Position and Borrowing Increase: While liquidity remains robust, the large increase in borrowings warrants monitoring by investors for potential impact on leverage and future funding costs.
• R&D and Sustainability Leadership: Geely’s leadership in NEV development, ESG rankings, and carbon reduction achievements enhance its competitive positioning and may attract ESG-focused institutional investors.

Disclaimer

This article is intended for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making any investment decisions. The article is based on the latest annual results and corporate disclosures of Geely Automobile Holdings Ltd. Actual future outcomes may differ from forward-looking statements due to market and operational risks.

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