text | Jiang Xiaohua
The day before yesterday, Geely Auto ( Hong Kong stock code 00175) released its 2021 company financial report. The report shows that in 2021, Geely Auto's core financial indicators continued to improve, and the revenue of listed companies exceeded 100 billion yuan, achieving double-digit growth year-on-year; the overall average bicycle revenue was 88,000 yuan, a year-on-year increase of 9%; the new business segment was in full swing, and the revenue of technical services and authorized services increased by 245% year-on-year; the total cash reached 28 billion yuan, setting a new high for the company.
Since the fourth quarter of last year, the Chinese automobile industry has entered a long period of adjustment in the capital market. Most automobile companies with stable and positive fundamentals have performed sluggishly, with a huge drop of 30-60%. So much so that a joke circulated among people in the automotive industry: Automobile people dare not buy auto stocks, because those who hit the daily limit are junk stocks, and those who plummet are all high-performing stocks.
At the annual report press conference the day before yesterday, Gui Shengyue, CEO and executive director of Geely Auto Holdings Co., Ltd., said that the stock price of Geely Auto listed companies is significantly different from the actual value of the company, and Geely Auto will have sufficient upward growth momentum in the future. I believe that the market performance will eventually return to a level that matches the actual value of the company.
Mr. Gui's words are certainly not encouraging everyone to buy Geely Auto's stocks now. The old masters who have been in the face of the strict Hong Kong Stock Exchange will not make such unrestrained mistakes. However, judging from the obvious value of Geely Auto, the market value of 100 billion Hong Kong dollars is indeed underestimated by the naked eye.
However, in my opinion, the most critical reason for to firmly hold 00175 is not the difference between the company's current actual value and market value, but the future of this number one Chinese automaker, which is what Gui Shengyue mentioned in his speech that Geely Auto will have sufficient upward growth momentum in the future in the long run. Where does this continuous motivation come from? I think the market progress seems to be a long time, but Geely Automobile is not the most anxious new energy sector , as the representative, let’s talk to the villagers.
At the turn of the third and fourth quarters last year, Geely Automobile grandly released its 2025 strategy at the Automobile Research Institute of Hangzhou Bay . At this year's annual report conference, the speeches of all leaders of Geely are basically a reaffirmation of the 2025 strategy. In fact, even for Geely itself, the release of this strategy was a little later than expected. It is not difficult to infer that this should have been a complete 5-year plan.
But for the entire industry, it is not too late at all. On the contrary, this strategic plan with intelligent electrification as the core is the first strategy I have seen at present, which is the most complete and most valuable reference value for the transformation of large-scale auto companies in the entire process of this round of automobile industry revolution. It reflects Geely's comprehensive thinking on the path of industrial transformation, and based on this thinking, the full play to its own advantages.
Compared with Volkswagen's ongoing electrification of a hero who cuts his arm, and the Toyota 's approach of throwing out dozens of pure electric models in one go, I think Geely's 2025 strategy has the following characteristics that are more worth savoring.
First, we will never give up our pursuit of diversified new energy routes due to temporary policies and high decibel interference from the market. is mainly reflected in the oil-electric hybrid and super electric hybrid that Geely will start to launch this year. In 2022, we will see up to 10 new energy products on the market.
Oil-electric hybrid has always been in the new energy array listed by the Ministry of Industry and Information Technology, but except for some places supporting local enterprises, oil-electric hybrid has never received any reasonable subsidies. With the continuous decline in new energy subsidies, many places have gradually cancelled assistance to plug-in hybrids.
However, Geely believes that in the development trajectory of automobile energy-saving with zero emissions as the end point, hybridization is an important intermediate link that should not be avoided. This is the real demand of the market.
For radical consumers, direct pure electric is of course an acceptable choice. However, if the new energy sector wants to complete the revolution of fuel vehicles smoothly, then providing multi-level choices rather than either one or the other is the inevitable path.
However, in order to show an independent hybrid presence while Toyota is already strong and Europe and the United States are basically giving up, and to make such products a pillar product in the future. Geely believes that it is necessary to make technologies that have leading advantages in multiple dimensions such as energy-saving, interference-free electrification education, and intelligence.
Therefore, we see that Geely has made the world's highest hybrid vehicle thermal efficiency level with a thermal efficiency of 43.32%, which brings more than 40% fuel economy, and at the same time, the acceleration and handling performance of the vehicle have also achieved breakthroughs simultaneously.
We will see immediately that the pure electric range exceeds 100 kilometers and the high-function version exceeds 200 kilometers. This year, it will cover the Geely product series to the Lynk & Co flagship model priced at more than 400,000 yuan. This means you choose a car with no mileage and replenishment anxiety at all, but at the same time, you are driving purely electric most of the time. This is the best choice for electrification education for consumers with the "silent majority".
At the same time, Geely's new energyization has another characteristic, that is, in the process of new energyization, it never ignores its core expectations of consumers because of whether a type of product represents the most cutting-edge new energy technology, such as security and intelligence.
Even fuel products, such as the China Star series, have always strived to subvert the same level in terms of intelligence, which is the key to the high-end series under Geely that can quickly expand its market share. This is especially true for Geely's oil-electric hybrid and "super electric hybrid" series. All products are configured according to the intelligent architecture of Geely 4.0 era. Among hybrid models, the Geely Thunder Hi·X realized the FOTA of the power system for the first time. In addition, the vehicles are equipped with adaptive and self-learning energy intelligent management capabilities.
It is worth mentioning that the Geely China Star series, after the impact of several strong products that subvert the market, has formed a lighthouse effect on the Geely brand. Through the China Star series, a Chinese brand, for the first time, relying on the existing brand itself rather than creating a new brand, has completed a breakthrough that has significantly exceeded the price ceiling. The lighthouse effect of
will be more prominent in Geely's super electric mixing era, and even in the pure electric era. The success of China Star is the most eye-catching move at the beginning of the Geely 4.0 era. He opened up the broad development space of Geely's brand and ended the inefficient development framework in which Geely could only launch a variety of products in a narrow price space in the 3.0 era; and it will inevitably improve the market image and market capacity of Geely's brand overall. This is the fundamental reason for Geely Automobile to achieve a significant increase in revenue in this year's financial report.
In Geely's new energy era, with the support of pure electric technology supported by super electric mixing and Haohan platforms, the space above China Star has been expanded to the 300,000 level. As the car brand with the widest audience and the most popular car under Geely Auto, the road toward progress has been paved with China Star.
This New Year's Day, I have predicted that the energy iteration of oil to electricity will not be smooth in any aspect. There may be repeated links ranging from national policies and diplomacy to open and secret struggles by industry participants. It is impossible to be as smooth as some power-up bosses said. The direction of the tram market at the beginning of the year and the various situations in the industrial chain also confirm this judgment.
and hybrid products including plug-in hybrid will take over the largest scale of user transformation of traditional fuel vehicles in the first stage of electrification. This is the market path that best conforms to the market logic.The premise for the statement
is the answer given by Geely Thunder Hi-X Hybrid: Enterprises must provide the market with products that meet the expectations of the times in terms of intelligence, energy saving and the performance of the car itself. Instead, just build hybrid vehicle . Just like what many companies say about electrification, it seems that as long as the oil is converted into electricity, the transformation is completed. Such product logic does not meet the requirements of the times, and transformation and upgrading will be difficult to achieve success.
When I talk about my future ideals with almost all large-scale car companies that are undergoing transformation, the first sentence is always the case. We must base ourselves on giving full play to our own advantages. What does it mean to base yourself on your own advantages? Geely's Thunder God Zhiqing Hi·X hybrid is.
's persistence in diversified new energy strategies is not only a comprehensive examination of the multidirectionality of new energy paths, but also a determination and loyalty to the direction and ideas of market demand to determine the company. The changes in more than industries tell us that when faced with the transformation of change, large enterprises can only achieve final victory only if they are loyal to market demand.
In fact, in 2022, we have seen a group of independent brands and joint venture brands that are all making efforts in the fields of hybrid and plug-in hybrids. The previous huge electrification leap forward path will return to the path it should be from this year. Among these products, Geely's Thunder God Zhiqing Hi·X Hybrid Legion is undoubtedly the market leader.
Second, Geely will not change its rhythm due to market fluctuations, nor will it give up its principles. Geely's principle, that is, the fundamental reason why this company has developed as China's first private vehicle manufacturer to this day is that it always pursues the best cars that are loved and used by the most people; in action, it is to always put the best technology that has been mastered into mass production at the fastest speed.
Put the best technology you have mastered into mass production at the fastest speed. Perhaps this is still slow in the eyes of some people. Because the logic that is more acceptable is to take the initiative no matter what, and then let’s talk about it. For example, the criticism that Geely has often faced in the past few years is that Blue Geely's actions have not been implemented as scheduled, especially in the pure electric field, which has slow development.
However, for Geely, in order to make efforts in the pure electric field, we must wait for its strongest architecture ready, although Geely has been preparing for this for eight years, which is longer than the creation time of most new forces. Geely's philosophy is not accepted, like many companies, to build a group of cater to the tram, first get stuck. Geely's position is a representative enterprise of China's automobile industry, so in the face of the new era, Geely needs products that represent the highest level of China's automobile industry.
Last year, Geely ushered in a significant growth in pure electric brand geometry and the release and delivery of pure electric high-end brand Zekr. Zekr is the king of Geely Automobile's new energy. It is not only the product of the two ace architectures of Haohan Architecture and GEEA 2.0 electronic and electrical architecture, but also the choice of the enterprise transformation track.
Although Zekr had user complaints during the initial delivery process, from two aspects, we see that this brand can quickly get rid of the shackles of starting and embark on the track of rapid development. First, all the problems arise are caused by the temporary chaotic caused by insufficient initial experience of a new automobile company; second, there are no problems in the core link of the Zekr product, and the product strength is obviously outstanding in the same price.
Zekr quickly found his most comfortable rhythm after a brief stagger. There are inevitably some problems in the initial stage when the new technologies and new production lines of automobile companies are put into production, but Geely has never had a critical technology knot. This is the result of Geely's efforts to put into production in the evolution of its enterprise.
So, at the press conference the day before yesterday, the chairman of Geely Automobile Group and CEO of Zeikr Intelligent Technology, Anconghui emphasized confidently that Zeikr will achieve the goal of annual production and sales of 650,000 vehicles in 2025.This is the confidence brought by product confidence.
For Geely, the new energy needed is perfect after implementation and development logic can represent the future product direction. Market expectations and product improvement are the fundamental reason for Geely to decide the new energy node, rather than the noisy and opportunistic idea of capital.
At the same time, Geometry, as a popular electric vehicle product of Geely Automobile, has been adjusted to a marketable channel after a significant increase in 2021. Geely will open its G network and L network in 2022 to empower incremental growth.
In addition, Geely has previously expressed that within Geely Automobile, every brand is a participant in the era of intelligent electrification. As the core brands of Geely Automobile, Geely and Lynk & Co will definitely not stop at electric mixing, but will follow the trend of clean energy. In other words, Geely and Lynk & Co will each launch their own smart electrified products based on the characteristics and development needs of their own brands.
In my opinion, Geely and Lynk & Co's pure electric should be early but not late. Lynk & Co's unique brand positioning has proved that the power of personalization for current users to purchase car products is much greater than before. Today, Geely and Lynk & Co have completely overlapped some price ranges. Not only does it not compete for each other, but it is an ideal situation where 1+1 is greater than 2.
Therefore, in the field of smart electric vehicles with more segmented people and more unbounded design space, the three distinctive brands of Zekr, Lynk and Co, and Geely can each develop pure electric smart products simultaneously according to the brand's characteristics and development needs. This is also what Haohan Platform’s powerful customization capabilities can undertake.
Therefore, at the moment when Geely has prepared its architecture and technology, the rapid implementation of Geely Pure Electric and Lynk & Co pure electric will play a completely positive role in both the two brands themselves and the layout of Geely's entire new energy product. This should be learned from the initial experience of Lynk & Co. when it was launched. Geely followed the traditional idea and was afraid that Geely would conflict with Lynk & Co., which resulted in Geely's upward pace to a certain extent, resulting in Geely repeating the car inefficiently in the range of 100,000 to 150,000 in a few years; Lynk & Co itself did not benefit from this protection. It was not until Lynk & Co., Ltd. that Lynk & Co., Ltd. 03 that Lynk & Co. truly found its due position.
pure electric great opportunity at present, Geely must observe such experience. Since you are ready, you can't hesitate. With the current brand power of Geely and Lynk & Co, and the high awareness of Geely Pure Electric driven by Zekr, the three brands will inevitably form potential energy that sets off each other. This is exactly the unique advantage of Geely's architectural advantages and brand advantages, which other companies do not currently have.
Third, Geely's examination of the entire process of the transformation of the new energy industry is the most complete, clear and rational.
In the 2025 strategy, the release of Thor's powertrain brand, the entire industrial chain of clean energy and the full stack of intelligent technology self-development reflects this.
Thor Power has a rich connotation, which represents Geely's judgment on the future market's rich needs for a variety of high-efficiency powertrain products, and also expresses Geely's commitment to users who choose various energy methods to provide the best products.
We can see that many traditional enterprises actually adopt a rough transformation path in the process of electrification. Some large international companies have also weakened and even given up their continued investment in technologies and products other than pure electric power. Of course, when making these choices, the wording of large companies is full of passion and dreams, but this is not the attitude that large companies that are responsible for their users should choose.
Geely is different. Relying on the leading architectural advantages established in the past decade, Geely chose a strategy of simultaneously developing, optimizing and promoting the points that will be needed for a long time in fuel, hybrid, pure electric and other markets. From the Geely 3.0 era to the current 4.0 era, Geely strives to provide the best products of the same level among all power forms, and ensure that all power forms still maintain efficient and sustainable development capabilities. The excellent definition of
is not limited to powertrain, but is also reflected in the synchronization of the needs of the times. Geely's intelligent applications have the shortest cycle of configuration from high-end products to the entire series. This is Geely 's response to the needs of the times in terms of product ideas.
CEO of Geely Holding Group, vice chairman and executive director of Geely Automobile Holdings Co., Ltd. Li Donghui mentioned at the annual report press conference that Geely's progress in technical services and authorized services in 2021 is gratifying. This is a clear return for large companies like Geely, which insists on providing all customers with high-quality and sustainable product ideas.
As many companies give up their strategic strategy of having internal combustion engine product technology, Geely's business segments of technical services and authorized services will expand rapidly in the next ten to twenty years. What Wang Ruiping, senior vice president of Geely Automobile Group and president of Geely Power Research Institute, said that Geely technology supplying the world is by no means whimsical.
Intelligent technology is self-developed in full stack, which is the core of the Intelligent 2025 strategy. This is also a soul proposition that Geely clearly answered in the face of the automobile industry revolution. So far, few other automobile companies have given such clear answers. This clarity is not only verbal, but also action.
For example, the connotation of self-developed by Geely clearly includes key aspects such as top-level chip design, big data analysis and application, satellite network coverage, etc. To put it clearly, when the automobile and even the travel industry enter the stage of the intelligent industry, Geely does not intend to hand over the neck to others on the core proposition that determines the direction of the industry in the future, and Geely believes that intelligent autonomy itself is a key growth point for the industry in the future.
Although many Internet and communication technology companies regard their decisions to enter the automotive industry as a dimensionality reduction blow in order to cheer themselves up, the core meaning is that they are obviously better than automotive companies in terms of technology, big data and organizational forms. Yes, they will encounter many car companies that choose to hand over their intelligence backs, but they will also face car companies like Geely to fight their arrogance.
And where does Geely Automobile's confidence in realizing intelligent full stack self-development come from? actually has only eight words, boundless integration and self-innovation.
We break out of the scope of Geely Auto and examine the entire Geely. In the past few years, Geely Holding Group and Geely Technology Group have accumulated a large number of cutting-edge technology foundations for Geely through mergers and acquisitions, investment, technical cooperation, co-creation, self-development and self-construction through various forms such as mergers and acquisitions, investment, technical cooperation, co-creation, self-development and self-construction, and have accumulated a large amount of cutting-edge technology foundations for Geely Auto with a rare inclusive and open attitude of global enterprise. These projects continue to promote development from various aspects such as technology, communication technology, finance, and big data, and are and will continue to feed back to Geely Auto. Looking back, you can see that all Geely's investment and financing projects are for the purpose of protecting Geely Auto.
The core of self-innovation is Geely Auto's transformation and inspiration of internal culture and human resources.
021 Spring Festival, An Conghui issued a declaration that Geely Auto will not limit talents, expressing the breaking of the traditional enterprise framework and supporting and cultivating talents needed by Geely Technology. During this Spring Festival, Geely Automobile Group CEO Oli Automobile Group 2 on this basis, it has promoted the advocacy of "let every Geely person shine" to all Geely employees.It is impossible for a company to be a technology-based talent, but everyone in a technology company should shine their own brilliance in the spirit of a technology company. This is Geely's most profound innovation to itself. This is also a self-innovation that many large enterprises are difficult to complete.
According to Gan Jiayue, after two or three rounds of personnel accumulate, as long as they do it themselves, there is no gap that cannot be made up for, nor does it have core technology that cannot be mastered.
's answer to these key questions reflects Geely's complete understanding of the industrial evolution path. Two essential prerequisites for putting this understanding into action are the core technical strength of leading and sustainable development, and the company's self-evolution ability based on consensus building.
Geely is integrating the other side and stage of product new energy, enterprise technology, industrial revolution, user emotional expectations and actual needs, and has formed the 2025 strategy, that is, Geely's intelligent electrification strategy.
In summary, I think this is the strategy I have seen that reflects the thinking of large automobile companies. It is also the reason why I think 00175 is worthy of medium- and long-term value investment.
Because Geely’s most reassuring point is the strategic determination and the execution ability that matches it.
As Gan Jiayue, CEO of Geely Auto Group, said: Since the establishment of Geely Auto, the corporate strategy has not deviated, and the ups and downs of the enterprise are nothing more than the quality of our execution. Since the 2007 Ningbo Declaration, Geely has found a synchronization between implementation and strategy, and has persisted to this day.
