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Business Times
2 days ago
- Automotive
- Business Times
Geely profit beats estimates amid reshuffle, sector scrutiny
[HONG KONG] Geely Automobile Holdings' first-half profit beat estimates as sales soared and the carmaker sought to reduce costs, even as the wider Chinese auto industry faces regulatory scrutiny over a long-running price war. The results incorporate a change in accounting policy, announced in April, that's been applied retrospectively. Under the new method, net income dropped 14 per cent from a year earlier to 9.3 billion yuan (S$1.7 billion) in the six months ended Jun 30. That compares with the 7.6 billion yuan expected by analysts. Revenue climbed 27 per cent to 150.3 billion yuan, the Hong Kong-listed arm of billionaire Li Shufu's auto empire said on Thursday. Vehicle deliveries rose 47 per cent in the first half to 1.4 million units. The robust start to the year prompted Geely in July to lift its full-year target to three million cars from 2.7 million. Geely has sought to streamline its sprawling network of businesses as it looks to take on the likes of BYD, China's best-selling carmaker. That includes taking the US-listed premium electric vehicle brand Zeekr private, after which Zeekr chief executive officer Andy An will become the CEO for the wider Geely group. The acquisition of Lynk&Co by Zeekr, which included a partial payment of 6.4 billion yuan, saw total borrowings surge 162 per cent to 19.9 billion yuan as at the end of June compared with December last year. The Hangzhou-based company's consolidation efforts are starting to show results, and it's narrowing the gap in sales with BYD in the China market. Not including seasonal fluctuations due to Chinese New Year holidays, the difference of 61,000 vehicles between the two carmakers' domestic deliveries in July is the smallest in about three years. BYD's overall sales grew 33 per cent in the first six months of this year. Meanwhile, Chinese car manufacturers are facing heightened scrutiny from authorities over the industry's long-running price war that's squeezing margins across the entire auto supply chain. The sector is also facing the winding down of a national trade-in subsidy, with the combination of factors likely to weigh on sales. Still, analysts are optimistic for Geely's performance in the second half of the year, with upcoming product launches such as the hybrid A7 sedan from mass market brand Galaxy and the luxury hybrid 9X sport utility vehicle from Zeekr likely to continue to drive volumes. BLOOMBERG
Business Times
15-05-2025
- Automotive
- Business Times
Geely appoints Zeekr head as new group CEO in shakeup
[HONG KONG] Billionaire Li Shufu is shaking up his sprawling Geely auto empire, lining up a new chief executive weeks after a shock move to take its US-listed premium electric car brand Zeekr private. Andy An, Zeekr's CEO, will also head parent Zhejiang Geely Holding Group after the subsidiary's privatisation by Geely Automobile Holdings is complete, said current CEO Daniel Li on an earnings call on Thursday (May 15). Zeekr's privatisation at a valuation of US$6.4 billion was announced earlier this month just a year after it started trading in New York and was seen as an escalation of Li's drive to streamline his business empire. The group, which also includes stakes in Volvo Car, iconic UK sportscar brand Lotus, and the maker of London's ubiquitous black taxis, is coming under pressure from intense competition in China's car market. 'Why this fast? Time waits for no one. Given the conditions of China's auto market, for Geely Auto, there is no room for error in the market,' Gui Shengyue, a senior executive with Geely Auto, said during the call on Thursday. 'So we must quickly resolve problems and through a merger, quickly lift the competitiveness of our company.' Daniel Li will become executive vice chairman of Geely Holding Group after the merger and will play an important role in the group's capital operations and collaborations, Li said. The leadership reshuffle was announced shortly after Geely Auto reported net income that more than tripled to 5.67 billion yuan (S$786 million) in the three months ended Mar 31, from 1.56 billion yuan a year earlier. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up That was broadly in line with guidance the company provided last month following a change in its accounting policy. Revenue rose 25 per cent to 72.5 billion yuan. Separately, Zeekr on Thursday reported a first-quarter net loss of 718 million yuan, narrowing 64 per cent from last year. Total revenue was largely flat, increasing just 1.1 per cent to 22 billion yuan. Zeekr merged with the Lynk & Co connected car brand earlier this year, and the period was the first quarter with the full integration of the two marques, Zeekr CEO Andy An said. 'The two brands' initial technological consolidation has already boosted profitability through optimised R&D and shared platforms,' An said. Geely recorded net current liabilities of 11.3 billion yuan, but said that after a comprehensive assessment, this has no significant impact on its ability to continue, because the business continues to generate stable cash flows, has good relationships with financial institutions and is carrying out plans to improve liquidity, it said. Geely continues to enjoy strong growth in China, with deliveries rising 48 per cent in the first three months of this year. Popular models such as the electric Xingyuan hatchback and Xingyue L sport utility vehicle are among the best-selling vehicles in the world's largest auto market. But like other Chinese automakers, Geely is facing stiff trade headwinds. The European Union's tariffs on Chinese electric vehicles and the increase in taxes on car imports and weak consumer sentiment in Russia – where Geely is a top seller, are impacting exports. Overseas deliveries grew just small 2 per cent in the first quarter, compared with a 66 per cent surge in a year earlier, according to a separate company filing in April. BLOOMBERG
CNA
23-04-2025
- Automotive
- CNA
Chinese automaker Zeekr debuts first hybrid model at Shanghai auto show
23 Apr 2025 11:51AM (Updated: 23 Apr 2025 11:57AM) SHANGHAI :Chinese automaker Zeekr debuted its first hybrid model the Zeekr 9X luxury SUV at the Shanghai auto show on Wednesday. Andy An, the company's CEO, unveiled 800-volt fast-charging technology for hybrid vehicles.
Reuters
23-04-2025
- Automotive
- Reuters
Chinese automaker Zeekr debuts first hybrid model at Shanghai auto show
SHANGHAI, April 23 (Reuters) - Chinese automaker Zeekr (ZK.N), opens new tab debuted its first hybrid model the Zeekr 9X luxury SUV at the Shanghai auto show on Wednesday. Andy An, the company's CEO, unveiled 800-volt fast-charging technology for hybrid vehicles.
Ya Libnan
18-03-2025
- Automotive
- Ya Libnan
Tesla's China rival Zeekr to roll out advanced driver assistance-system for free
BEIJING — Chinese electric car company Zeekr is releasing advanced driver-assistance capabilities to its local customers for free as competition heats up, Zeekr CEO Andy An told CNBC ahead of a launch event Tuesday. The tech enables the car to drive nearly autonomously from one pre-set destination to another, as long as drivers keep their hands on the steering wheel and there is regulatory approval — which is increasingly the case in most major Chinese cities. It's the latest Chinese electric vehicle brand to upgrade its driver-assistance products as Tesla tries to attract more buyers of its own version, called Full Self Driving, in China. After initial criticism that the 64,000 yuan ($8,850) software was too expensive, some Chinese social media users said Monday that Tesla was offering some users the driver-assistance system for free through April 16. Tesla did not immediately respond to a request for comment. Zeekr's version will be free, rolled out to a pilot group initially and then released to the public in April, according to the company. 'Right now, in this period of development, I think subscriptions aren't that meaningful,' CEO An said in an interview Friday, according to a CNBC translation of his Mandarin-language remarks. Given the intense competition, he said, Zeekr needs to close the gap on driver assistance with market leaders and become a top player. 'So we need to bear some cost,' An said, noting Zeekr previously only offered more basic driver-assistance capabilities, such as for parking. Zeekr, which is listed in the U.S., is scheduled to release quarterly earnings on Thursday ahead of the U.S. market open. Shares are up about 6% year-to-date. CEO An said that Zeekr's driver-assistance system uses two Nvidia Orin X chipsets and one lidar, or light detection and ranging unit that allows a vehicle to navigate roads without relying too much on sunlight conditions. He said a forthcoming version of the system will use Nvidia's more advanced Thor automotive chip, one long-range lidar, and four shorter-range lidar units. 'Using lidar may increase cost, but this reflects how much we value safety,' An said. He said the driver-assistance system for Zeekr cars sold overseas will not use the Nvidia chips for now, given different regulations and local market demand. Zeekr's driver-assistance system will also be used for fellow EV brand Lynk & Co.'s cars, An said, and potentially vehicles from parent company Geely. Zeekr officially acquired Lynk & Co. this year. Sales of Nvidia's 'self-driving platforms' helped drive the chipmaker's revenue from automotive and robotics to a record $570 million in the fourth quarter of the 2025 fiscal year. Also reflecting market demand, major lidar producer Hesai said this month that its lidar shipments have more than doubled annually for four straight years as of 2024. Hesai's CFO Andrew Fan told CNBC last week that the company expects significant growth in advanced driver-assistance systems this year from last year, and noted an industry joke that China's electric car market has shifted from a price war to a war over driver assistance. Over the last two years, the technology has increasingly become a selling point for new energy vehicles in China, which include battery-only and hybrid-powered cars. NEV giant BYD in February announced it was rolling out driver-assist capabilities to more than 20 of its car models. While current features mostly focus on parking and highway navigation, the company said an upgrade with point-to-point driver assistance would likely be issued by the end of 2025. The most basic version of BYD's driver-assistance system uses Horizon Robotics' chipset along with Nvidia's Orin, while more advanced versions only use other Nvidia chips, according to Nomura's research. Chinese EV startup Xpeng, another Nvidia customer which made advanced driver assistance an early selling point, has delivered more than 30,000 cars a month since November, thanks in part to its new P7+ car that also did away with requiring additional subscriptions for driver assistance. Nio has advertised subscriptions for its driver-assistance features but has yet to charge users for them, according to the company. CNBC
