Geely Automobile Holdings Limited

Geely did not provide a full formal earnings table in the transcript, but management said H1 2026 sales revenue and profit both hit record highs. Gross margin was 17.9% in H1 2026, up from 16.2% in H1 2025, and Q2 gross margin was 18.4% versus 17.5% in Q1. Management said revenue outgrew sales and profit outgrew revenue, and that attributable profit was close to CNY 10 billion with a profit margin rate of about 5.6%, above the industry average of 1.6%. On exports, H1 overseas sales were 174,000 units, up 158% year over year; NEV sales were 277,000 units, up 585% year over year; and total H1 export sales were stated as 442,000 units. For AP, Qing Dai said accounts payable were about RMB 81 billion at 2025 year-end and about RMB 84 billion as of June 30, 2026, with turnover days improving from 110 days in H1 2025 to 103 days in H1 2026 and 96 days in Q2 2026. Management guided that Q3 gross margin should not be lower than Q2, supported by higher exports, commodity hedging, and supplier price locks.

The CEO commentary, delivered by outgoing CEO Shengyu Gui and incoming CEO Gan Jia Yue, focused on capability building rather than just a strong quarter. Gui argued that Geely’s results are sustainable because they rest on systematic capability, strategic resilience, and long-term value creation, not on a single product cycle. Gan reinforced that the company will use the One Geely framework to keep scaling domestically, expand overseas, and accelerate AI-led mobility transformation.

Yong Dai highlighted H1 gross margin of 17.9%, up 1.5 percentage points from 16.2% a year ago, and said Q2 margin of 18.4% improved from 17.5% in Q1. He attributed the margin expansion mainly to mix, citing ZEEKR volume rising from 77,000 units in Q1 to 100,000 in Q2 and noting export gross margin is about 10 percentage points higher than domestic sales. He also said the company had prepared for commodity and chip volatility through inventory buildup, fixed-price supplier agreements, and hedging, and therefore expected Q3 gross margin to be no lower than Q2. On working capital, Qing Dai corrected the payables concern by saying AP rose only from RMB 81 billion to RMB 84 billion, not doubled, while turnover days improved materially.

Analysts pressed management on ZEEKR 8X/9X export demand, China Star’s future in ICE versus HEV, whether Ford would use Geely technology in Spain, rising payables, and how One Geely would reduce product overlap. Management said overseas feedback on ZEEKR 8X and 9X has been positive, with strong demand in multiple regions and rollout plans starting in Q3/Q4. On ICE, Gan said the China Star series is shifting toward i-HEV and smart driving as the market moves to NEV, but still sees room because ICE remains large globally. On Ford/Spain, management said the European-produced cars will be sold locally, using the Geely GEA architecture, not the U.S. market. On payables, Qing Dai said the increase was only RMB 3 billion and reflected faster payment discipline under new policy pressure.