Geely Automobile (175) Q2 2026 earnings summary

Executive summary

• Achieved record H1 2026 results with sales volume of 1,423,000 units (+1% YoY), revenue of RMB173.6 billion (+15% YoY), and core net profit attributable to shareholders of RMB9.68 billion (+46% YoY), despite a challenging automotive market.

• Export sales surged 158% YoY to 474,228 units, with NEV exports up 585% YoY, strengthening global presence.

• Premiumization, globalization, and technology leadership drove growth, with ZEEKR and Lynk & Co brands showing robust performance.

• Leadership transition: Eric Li (Li Shu Fu) resigned as Chairman, succeeded by An Conghui; Gan Jiayue appointed CEO.

• Major acquisitions, share buy-back, and ZEEKR privatization marked the period.

Financial highlights

• Gross margin improved to 17.9% (+1.6pp YoY); gross profit reached RMB31.2 billion (+26% YoY).

• Core profit attributable to owners: RMB9.68 billion (+46% YoY); reported profit attributable to owners: RMB9.09 billion (-1.8% YoY, due to FX losses).

• Average revenue per vehicle rose 16% YoY to RMB112,000.

• Cash reserves/funding reached RMB69.6 billion as of June 2026; net funding reserve at RMB60.8 billion (+22%).

• R&D expenses totaled RMB9.2 billion (+26% YoY), representing 5.2% of revenue.

Outlook and guidance

• Full-year sales target set at 3.45 million units, with focus on NEV penetration, premiumization, and overseas expansion.

• Targeting 1 million overseas sales, expanding channel network to over 2,380 outlets, and launching multiple new models, including premium and pure electric vehicles.

• Continued investment in AI, smart technology, and advanced electrification, including 800V/900V architectures.

• Gross margin in Q3 expected to remain at least at Q2 levels despite commodity price pressures.