Author: Weiwen
Source: GPLP
2019 is a small hurdle for Geely automobile(00175.hk) and 2020 is a big hurdle for Geely automobile.
On March 30, the 2019 annual performance report released by Geely automobile showed that the recorded revenue was 97.40 billion yuan, down 9.0% year on year. The profit attributable to equity holders was 8.19 billion yuan, down 35% year on year, which fell short of market expectations of 8.72 billion yuan. Earnings per share 0.90 yuan/share.
For this result, Geely automobile, said the decline in the performance is due to the market in 2019 has not exceeding the expectation , the overall decline significantly, plus weak demand and market competition is intense pricing pressure.
According to the data, Geely automobile sold a total of 1.36 million units in the whole of 2019, although it achieved the set annual sales target of 1.36 million units. Geely automobile, which had planned to sell 1.51 million units in 2019, was forced to cut that figure in its semiannual report.
In terms of specific models, SUV is the best-selling model, with a total of 709,800 units sold in 2019, accounting for 52.10% of the total sales volume of the automobile business. Among them, the Boyue series sold well, with a total sales volume of about 228,600 units, down 10.61% year on year. The sales volume of emgrand GS and Bin Yue are about 112,800 and 137,500 respectively, occupying the second and third place in the same category.
However, it should be noted that in terms of sedan type, the new emgrand and the emgrand GL performed poorly, selling 205,100 and 79,300 units respectively in 2019, down 16.92% and 46.55% year on year.
Affected by public health events, Geely’s cumulative sales volume in January to February 2020 was 133,000 units, down 45% from the same period last year. The sales volume was very bleak.
Geely said it will actively adjust dealer inventory and profitability in 2019, and will continue to introduce more competitive new energy vehicle products, increase the proportion of new energy vehicle sales, and restore the growth momentum of the domestic automobile market as soon as possible.
On March 30, Gui Shengyue, CEO of Geely automobile, revealed at Geely automobile’s 2019 performance presentation that as for the progress of the merger between Geely and Volvo, specific plans for the merger are being studied.
Some industry insiders said that in the current automobile market, where individual companies are already struggling to resist the market chill. Choosing an alliance or a merger is a good way to get through the current period. 2020 is indeed the best time for Volvo and Geely to merge.Geely automobile may not give up this good chance.
