Geely’s Earnings Exceeded Expectations

Geely Automobile Holdings posted a record-breaking profit in its annual report, beating analysts’ estimates, bringing China’s second-largest automaker closer to outselling market leader BYD, thanks to the popularity of its EX2 hatchback and Zeekr SUV.

Net profit rose to 16.9 billion yuan (S$3.1 billion) in 2025, compared with 16.8 billion yuan a year earlier, the Hong Kong company from billionaire Li Shufu’s car empire said on Wednesday. That beat the average of 16.5 billion yuan based on estimates from 31 analysts compiled by Bloomberg. Revenue rose 25 percent to 345.2 billion yuan.

Geely gained market share over BYD in China last year and has even surpassed the world’s largest electric vehicle maker in sales since the start of 2026. The company is targeting sales growth of 14 percent this year as it seeks to become one of the world’s top five automakers by the end of the decade.

However, shares of Geely Automobile Holdings fell as much as 5.5 percent in Hong Kong on Wednesday after the results were announced.

Excluding items such as foreign exchange gains and the sale of subsidiaries, profit rose 36 percent, the company said.

Vehicle sales, including the Zeekr and Lynk & Co brands, rose nearly 40 percent to three million units last year. The Xingyuan, known abroad as the EX2, became the best-selling model in China in 2025, while the Zeekr 9X luxury SUV also led sales of vehicles priced at 500,000 yuan and above in recent months, according to Chinese media reports.

The automaker has been in a major reorganization for just over a year, starting in late 2024. As part of its “Taizhou Declaration” strategy, Geely Group has shifted its focus to consolidation and cost reduction, merging brands such as Zeekr, which has withdrawn from the New York Stock Exchange, and Lynk & Co back into Hong Kong-based Geely Auto.

These moves appear to be paying off, as Hangzhou-based Geely sold more vehicles than BYD globally in the first two months of 2026, its biggest lead since 2022. However, Geely still lagged far behind BYD in revenue and profit, as BYD’s larger sales volume last year enabled better economies of scale, while the company’s vertically integrated supply chain helps control costs.

However, exports — which have become increasingly important for Chinese automakers in recent years — were weak last year. Due to falling demand in Russia, Geely’s total overseas deliveries reached 420,097 vehicles in 2025, largely unchanged from the previous year, the statement said. By comparison, BYD’s overseas sales rose 150 percent to 1.05 million vehicles.

• Also See: Ford And Geely Set To Enter A Close Partnership