Geely Auto 2025 Financial Report: Supply Chain Synergy and Global Expansion Under “One Geely” Integration

Core Data/Events Event: On March 18, 2026, Geely Auto released its 2025 annual results, with total revenue exceeding RMB 300 billion for the first time. Source: Geely Auto 2025 Annual Report Core Data ● Total Revenue: RMB 345.2 billion, up 25% YoY, an all-time high. Source: Geely Auto 2025 Annual Report ● Core Net Profit Attributable: RMB 14.41 billion, up 36% YoY (excluding non-core items such as FX fluctuations). Source: Geely Auto 2025 Annual Report ● Total Sales Volume: 3.0246 million units, up 39% YoY, exceeding the 3 million target. Source: Geely Auto 2025 Annual Report ● NEV Sales: 1.6878 million units, up 90% YoY, with penetration reaching 55.8%. Source: Geely Auto 2025 Annual Report ● Export Volume: 420,000 units, up 33.2% YoY; NEV exports reached 124,000 units, up 240% YoY. Source: Geely Auto 2025 Annual Report ● R&D Investment: RMB 21.87 billion, up 8.3% YoY. Source: Geely Auto 2025 Annual Report ● 2026 Export Target: 640,000 units (52% YoY growth), with an internal target of 750,000 units. Source: Geely Auto 2025 Results Call Brand Performance (Source: Geely Auto 2025 Annual Report)

Brand 2025 Sales YoY Change Core Positioning

Geely Galaxy 1.236M +150% NEV mainstay, >73% of NEV sales

Geely China Star 1.214M +3.4% ICE foundation, 1 for 9 consecutive years

Lynk & Co 350,500 +23% Mid-to-premium hybrid & BEV

Zeekr 224,100 +1% Premium BEV, slowing growth

In-Depth Analysis 1. Supply Chain Perspective: Quantifying the Synergy Effects of “One Geely” Integration The most noteworthy aspect of Geely’s 2025 financial report is not the sales data itself, but the structural cost optimization resulting from strategic integration:

Structural Decline in Expense Ratios: Following the integration with Zeekr, Geely Auto’s selling expense ratio decreased by 0.7 percentage points YoY, while administrative expense ratio dropped sharply by 17.1% YoY (Source: Geely Auto 2025 Annual Report). This level of reduction is particularly notable during a period of scale expansion, reflecting the cost dilution effects of multi-brand synergy.

Improved R&D Efficiency: Total R&D investment reached RMB 21.87 billion in 2025, up 8.3% YoY, but the R&D intensity ratio (R&D/Revenue) declined from approximately 7.2% in 2024 to 6.3%. This indicates that while R&D investment grew in absolute terms, revenue growth (25%) significantly outpaced R&D growth (8.3%), reflecting enhanced R&D efficiency. Behind this is the sharing of the “Full-Domain AI” technology base across multiple brands—the same intelligent driving system (G-ASD) and smart cockpit solution (Flyme Auto) can serve Galaxy, Lynk & Co, and Zeekr simultaneously.

Gross Margin Resilience: Full-year gross margin remained stable at 16.6%, largely flat YoY. In the context of sustained price wars in the NEV industry, stable gross margins, combined with declining expense ratios, supported the 36% growth in core net profit attributable. CFO Dai Yong noted during the results call that, in response to upstream commodity price increases, “scale advantages and premium positioning can absorb raw material cost pressures” (Source: 2025 Results Call). This statement reveals the underlying logic of Geely’s supply chain bargaining power—scale procurement plus premium product structure creates a buffer against upstream cost volatility.

Interpreting the “Gap” Between Net Profit Attributable and Core Profit: The financial report shows net profit attributable of RMB 16.852 billion, up only 0.2% YoY, contrasting sharply with core net profit attributable of RMB 14.41 billion (+36%). The difference stems from two main factors:

Foreign Exchange Impact: RMB 2.43 billion in net gains from RMB exchange rate fluctuations were included in net profit attributable but excluded from the core profit measure

High Base Effect: 2024 net profit attributable included RMB 9.35 billion in one-time gains from equity disposals This structure indicates that Geely’s core operating profitability actually grew strongly in 2025, but the market needs to distinguish between “one-time gains” and “sustainable operating profit.”

2. Globalization Perspective: From “Product Export” to “Supply Chain Going Global” Behind Geely’s export figures—420,000 units in 2025, targeting 640,000 in 2026 (52% YoY growth) with an internal target of 750,000—lies a paradigm shift in globalization strategy:

Evolving Strategic Narrative: Geely Auto Group CEO Gan Jiayue articulated a three-tier strategy during the results call: “products go out, supply chains go in, brands and technology go up” (Source: 2025 Results Call). This aligns closely with the three-stage framework for Chinese automakers’ global expansion (trade → localized production → technology export). Geely is in a critical transition from stage one to stages two and three.

Overseas Channel Expansion: By the end of 2025, Geely’s overseas network had expanded to 88 countries and regions, with over 1,200 outlets. The 2026 target is to increase this to more than 2,200 outlets—nearly doubling channel coverage. This expansion pace suggests the overseas sales network is shifting from “point-based” to “network-based” coverage.

Strategic Choice of Local Partnerships: An Conghui, CEO of Geely Holding Group, clearly articulated the globalization strategy during the results call: “It is very difficult and risky for an automaker to go it alone in the international market. The outcome is different if we collaborate with excellent partners.” (Source: 2025 Results Call). The collaborative logic he described—overseas automakers possess capacity, supply chains, talent, and channel advantages, while Geely has strengths in electrification, intelligence, and architecture—captures the underlying business logic behind Geely’s partnerships with global automakers like Renault.

Country-Specific Market Strategies: Geely explicitly outlined its tiered market approach: “focus on 3 ‘15 million-unit’ markets (Europe, Eastern Europe, ASEAN) and 2 ‘10 million-unit’ markets (Latin America/Africa, Middle East/Asia Pacific)” (Source: 2025 Results Call). This tiered strategy implies differentiated approaches to product, pricing, channels, and localization depth across regions, rather than a one-size-fits-all export model.

3. Intelligent Technology Roadmap: From Follower to Exporter Geely’s intelligent technology progress deserves examination at the intersection of supply chain and globalization perspectives:

Precedent for Technology Export: Geely’s G-ASD intelligent driving system has received EU certification, becoming the first Chinese high-level assisted driving system to go overseas (Source: Geely Auto 2025 Annual Report). This represents a substantive breakthrough in “technology going global”—Geely now has the capability to export intelligent driving technology solutions to overseas markets.

Strategic Partnership with NVIDIA: Geely has formally established an AI strategic partnership with NVIDIA to jointly build the next-generation intelligent mobility technology foundation (Source: Geely Auto 2025 Annual Report). The supply chain implication of this partnership is that Geely’s intelligent driving roadmap will be deeply integrated with global AI computing infrastructure, rather than relying on a single supplier.

Benchmarking Intelligent Driving Capabilities: Geely management stated during the results call that the company’s intelligent driving technology “is expected to reach the current level of Tesla FSD by 2026” (Source: 2025 Results Call). Regardless of whether this timeline is met, the signal is clear: Geely has elevated intelligent driving capability to a strategic priority benchmarked against global leaders.

Industry Insights ● For Automakers: The “Cost Dividend” Window for Multi-Brand Integration is Finite . Geely achieved reductions in both selling and administrative expense ratios through its “One Geely” integration. However, this benefit is essentially a one-time integration gain; long-term sustainable competitiveness still depends on technological leadership and brand premium. For other automakers pursuing multi-brand strategies, the integration window is narrowing. ● For Suppliers: Global Localization Capability Becomes a Differentiator . Geely’s 2026 export target of 640,000 units and expansion to 2,200 overseas outlets imply a concurrent surge in demand for localized supply chain support. Tier 1 suppliers with overseas production capacity, familiarity with local regulations, and the ability to serve multi-brand requirements will capture structural growth opportunities. ● For Chinese Automotive Globalization: A Paradigm Shift from “Trade Export” to “Ecosystem Export” . Geely’s three-tier strategy—“products go out, supply chains go in, brands and technology go up”—essentially defines a mature pathway for Chinese automakers going global. 2026 will be a critical year for validating this paradigm shift: whoever successfully transitions from “exporter” to “global local player” first will gain a decisive advantage in the next phase of competition.

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