【Geely Auto (0175.HK)】Strong 1H25 Results, “One Geely” Strategy Accelerates—2025 Interim Results Review

August 19, 2025

Executive Summary

Solid 1H25 Performance

Geely Auto reported a robust set of interim results for 1H25. Total revenue rose 26.5% YoY to RMB 150.28bn, with a gross margin of 16.4% (down 0.3ppts YoY). Reported net profit attributable to shareholders fell 13.9% YoY to RMB 9.29bn, but core net profit surged 102% YoY to RMB 6.66bn. We believe the strong performance was underpinned by rapid volume growth and improved efficiency from internal integration.
As a steering systems supplier to Geely Auto, XEPS also notes the company’s outstanding 1H25 results, which highlight the synergy between volume expansion and operational execution.

Four Brands Driving Sales Growth; Cost Efficiency Emerging

Total sales reached 1.409m units (+47.4% YoY), with NEV sales hitting 725k units (+126.5% YoY), lifting the NEV mix by 18.0ppts to 51.5%. By brand: Geely Galaxy sales rose 232% YoY, Zeekr was up 3%, and Lynk & Co gained 22%.

On the cost side, SG&A ratio dropped 1.7ppts YoY to 7.5%, with selling and admin expenses at 5.6% and 1.9%, respectively. Looking ahead:

We expect new models such as Galaxy A7, Galaxy M9, and Lynk & Co 10EM-P to drive incremental volumes in 2H25E. Geely has already raised its full-year sales target by 11% to 3m units, with 47% achieved in 1H25. High-end models such as Zeekr 9X and Lynk & Co 900 are set to enhance the product mix and support margin improvement.
Early signs of synergies from the Lynk & Co and Zeekr consolidation are visible. Following Zeekr’s privatization, resource reallocation and cost optimization are expected to drive further efficiency gains.

“One Geely” Strategy Accelerates; Globalization + Intelligence on Track

Management guides that the Zeekr acquisition is expected to close by year-end 2025, with a total cash consideration of ~USD 2.4bn (cash outflow capped at 30%). We believe:

Under the “One Geely” framework (as set out in the Taizhou Declaration), the consolidation of Geely and Zeekr will strengthen group synergies and operational scale.
Globalization & intelligence strategy:
- Globalization: Exports declined 7.7% YoY in 1H25 due to Eastern Europe weakness. However, with new models such as Starship 7 and Starwish entering global markets, plus overseas dealer network expansion, Geely’s internationalization momentum is expected to accelerate in 2H25E.
- Intelligence: Geely’s autonomous driving business has been consolidated under Qianli Zhijia, a JV with Qianli Technology. The in-house Qianli Haohan ADAS platform is advancing toward mass deployment, with the H9 solution offering L3 capabilities. This should significantly enhance competitiveness across different price segments.