Geely Automobile Holdings Limited

Dear friends from the media, good afternoon. Today is at the beginning of spring. And so we could see that the warm market of the in Hong Kong. So thank you very much for attending the Geely Automobile Holdings Limited 2024 Annual Results Conference. So wish you complete success. And my name is Zhao Yang. I would like to introduce you to the management team of Geely Automobile. They are the Geely Automobile Holdings Limited CEO and Executive Director, Mr. Gui Shen Yue. President Geely Holding Group and CEO of Zika Technology Group, Mr. An Chonghui, and CEO of Geely Automobile Group and Executive Director of Geely Automobile Holdings, Mr. Gan Jiayue, and CFO of Geely Automobile Group, Mr. Da Yong. At the very same time, we also have our independent directors from Zika.

Attending our conference, they are Mr. Steve Davis, Mr. Miguel Lopez, and Mr. Michael Riggs. Thank you for their attending.

Thank you. There will be three sessions. First of all, the CFO, Mr. Dayong, will share with us our ending results and future expectations, and then Mr. Gui will give a speech. And finally, we will have a Q&A section, and the investors and also analysts who joined us online could also send your questions to us. So now I give the floor to Mr. Dayong. Dear investors and friends from the media, good afternoon. My name is Da Yong. Now I will introduce you the annual results of Geely Automobile in 2024. Last year was an important year for Geely Automobile to consolidate its leading position and make breakthroughs, and we have entered into a new stage. because we have the growth both in sales volume and profit. So last year that the sales volume actually reached up to 2.177 million with a growth of 32% and the total revenue exceeded 200 million up to 240.2 billion and so 240.2 billion with a 34 growth. And so in terms of profit, we could see here the profit attributable to the equity holders was 16.6 billion yuan and that excluded extraordinary items was 8.5 billion. So in terms of sales volume, we could also make breakthroughs especially in terms of the total sales volume and the new energy vehicles and also exports all setting a record high. And for the MEV with 888,000 vehicles sold, It grew by 92%, nearly double growth. And so here we can see we have three brands, Geely, Zeker, and Lincoln, all reached new heights. And in last December, our market penetration has reached 58.6%. And in terms of the fuel vehicles, we sold 1.289 million, which actually we could see we have made growth against the headwind. So we really consolidate our position. In terms of export, here we could see the export was 415,000 vehicles with a growth by 57%. And in terms of the export source, accounting... And in terms of finance performance, we could see it as being driven by the scale effect and high value products. So we have sales growth and also product structure optimization. And therefore, the sales revenue actually set the record high up to 240.2%. a million and so here we could see that the average unit price rose steadily up to the 107 000 yuan in the fierce market so along with our increasing competitiveness of our products and a prominent economy of scale so here we could see the gross profit that increased up to 38.2 billion yuan So here we can see in the profit margin, gross profit margin also grew by 0.6%, already up to 15.9%. And in terms of operation and management, the sales and also administrative expense ratio has been reduced to 5.5% and 2% respectively in terms of R&D. We fully focus on the intelligence strategy of the new energy vehicle and continuously increase the intensity of the R&D investment. So last year, the total R&D investment up to 15.9 billion yuan. And however, we've optimized the R&D through street cost control. And therefore, the R&D investment only accounted 60.6% of our sales revenue. And so here we could see our company technology accumulation and systemization ability in the new energy vehicles gradually reflected in our financial results. So here we could see that the net profit achievable excluding extraordinary items reached 8.52 billion. So that's up to 52% year on year. And the new energy vehicles began to make profits in the fourth quarter and the company's strategic transformation reached the harvest period. So in terms of cash flow, so here we could see that operating cash flow up to 26.5 billion and the total cash level That's $40.9 billion at the end of 2024 and net cash flow $39.8 billion. On top of that, Geely Automobile rewards our shareholders year-on-year. And so here we can see that the dividend per share increased year-by-year. Last year, the proposed dividend per share is HK$33, up to 50% year-on-year. So in terms of our brand and product matrix, Geely Automobile achieved all-round and balanced development. So Geely brand with annual sales of 1.67 million vehicles increased by 27%. And Geely Galaxy has become the mainstream EV brand with annual sales up to 494,000 and that's the 80% of year-on-year growth. And therefore, the Galaxy products are selling very well and they ranked quite top among the different segments. So Galaxy E5 ranked top 1 in the electric compact SUV in January 2025, and Geely Xinyuan ranked top 1 among all categories of EV in January 2025, and Galaxy Starfish 7 EMI ranked top 1 among all brand plug-in hybrid cars. And China Star ranked first as the Chinese independent branded fuel vehicles in China for eight years consecutively. And so we sold 1.17 million vehicles and up to 14% of growth. And we have other brands just like Xin Yue L, Xin Rui, Bing Yue, all actually won annual sales champion in different subcategory. So Geely brand has already covered more than 80 countries and nearly 9,000 overseas and self-service outlets. And in 2024, that our Localized factory has been built and the Geely EX5 launched in August.