Geely Semi-Annual Report "Volume, Price, and Profit All Rise", Management Adjustment Strengthens "One Geely"

  August 17, Geely Automobile (0175.HK) was the first to release the 2026 Interim Performance Report. Amidst growth challenges in the automotive industry, Geely Automobile surged against the trend, with stunning data. According to the interim performance report, in the first half of the year, Geely Automobile's total revenue reached 173.6 billion yuan, a year-on-year increase of 15%; core net profit attributable to shareholders reached 9.68 billion yuan, a year-on-year surge of 46%.

Against the background where automotive industry profit margins fell to the historical low of 3.2% in the first quarter and the industry overall was under pressure, this report card appeared particularly striking.

Volume, Price, and Profit All Rise, Geely set an example for the industry with five words: How to navigate the cycle.

At the same time the semi-annual report was released, Geely Automobile Holdings Limited (0175.HK) announced a major personnel adjustment: Li Shufu resigned as Chairman of the Board and Executive Director, and was appointed Lifetime Honorary Chairman; An Conghui succeeded as Chairman of the Board, and Can Jiayue was appointed Chief Executive Officer. The timing of the announcement was notable — completing the power transition while the performance was delivered; this itself was a declaration of confidence: The new management team took over a company with solid fundamentals and a clear strategic path.

Returning to "One Geely"   Opening a New Path for Growth

Let's go back to September 2024. Li Shufu issued the "Taizhou Declaration" in Taizhou, proposing "Strategic Focus, Strategic Integration". At that time, many might not have realized the weight of this sentence. After all, starting from the "Ningbo Declaration" in 2007, Geely took a "Buy, Buy, Buy" path — Volvo, Proton, Lotus, Daimler ... Multi-brand matrix filled up.

At that time, overlapping positioning, internal resource friction, and conflict of interests among multi-brands, these "growing pains" could be covered up during the industry upturn, but once entering stock competition, decisive changes must be made. At the Chongqing Forum in June this year, Li Shufu spoke very directly: Will orderly close, merge, and transfer redundant entities related to Geely Automobile Group Limited, concentrating superior resources to strengthen the core listed platform. Translated into plain language — stop "each setting up their own camps", pull strength in one direction.

This semi-annual report is the first answer sheet for the "One Geely" strategy. The four brands no longer fight their own battles, but each guards a specific track: Zeekr attacks upwards, Lynk & Co moves widely, Galaxy stabilizes mainstream, China Star defends the base. The total sales of 1.42 million units in the first half were achieved this way.

And this management adjustment is essentially the final link of the "One Geely" strategy at the governance level.

Li Shufu said at the performance release: "The automotive industry is a marathon without end; enterprise inheritance and value orientation determine the enterprise's sustainable development ability." Resigning from the Board Chairmanship, making way for An Conghui who was cultivated within the Geely system, is precisely Li Shufu's handover arrangement for this marathon. An Conghui succeeded as Board Chairman, Can Jiayue assumed the role of CEO, the core tasks of the new Board of Directors and Management have been clarified — to strengthen enterprise synergy, and solidify and strengthen "One Geely".

Change in Valuation: Switching Logic from Discount to Premium

In the past few years, a core concern the capital market gave Geely was: The multi-brand strategy brought scale, but did not bring valuation premium. The reason is simple — positioning between brands is blurry, resources are scattered, investors cannot see clearly who Geely is. Zeekr, Lynk & Co, Geometry, Galaxy ... Each brand acts like independent combat, but together, they blur the overall narrative of the group.

The core contradiction behind this lies in that the capital market often finds it difficult to give high valuations to "Big and Comprehensive" enterprises, because profit sources are unclear and growth drivers are not obvious. In comparison, new force automakers like Li Auto and Seres although scale is far less than Geely, but through brand positioning, narrative path and other ways, instead quickly obtained higher valuations.

And Geely Automobile (0175,HK) this semi-annual report is changing this narrative. The four brands completed clear positioning cutting under the "One Geely" framework, investors finally can calculate a clear account for Geely: Zeekr contributes brand premium and profit ceiling, Galaxy and China Star contribute scale base and cash flow, overseas contribute incremental elasticity. Three growth engines each measurable and trackable, valuation uncertainty greatly reduced.

Morgan Stanley broke out Geely's overseas business separately for valuation in the July report, this practice itself explains the problem — Geely has already changed from "a difficult-to-price automobile group", to "a growth target that can be linearly valued by business". Behind the continuous upgrade of target prices by Citigroup, Bank of America, China Merchants International and other institutions, is "One Geely" letting valuation logic move from chaos to clarity.

Management adjustment further strengthened this narrative. Li Shufu resigned as Board Chairman but continued to serve as Chairman of Geely Holding Group, as controlling shareholder fully support company development, Gui Shengyue changed from CEO to Vice Chairman to improve Board and Management communication efficiency — the essence of this arrangement is, while "Founders step back, Professional managers move forward", ensuring the governance structure's three-level effective transparent operation. For the capital market, clear governance architecture and professional management team, is the institutional guarantee for "One Geely" strategy to execute long-term.

Capital market pricing is never based on the past, but based on the future. When Geely is no longer a "dispersed automobile group", but a "positioning clear, growth measurable tech mobility enterprise", the reconstruction of the valuation system has only just begun.

Going Overseas: Second Curve Already Exploded

If the domestic market is the base, then overseas is the biggest variable this year.

In the first half, Geely Automobile overseas sales 474,000 units, year-on-year increase 158%, half year exceeded last year's total export volume. June, July consecutive surpass 100,000 units, ranking jumped to third among Chinese automakers going overseas. This achievement, was obtained under the background of global trade barriers rising, compliance costs climbing, gold content not low.

More worth attention, is the structure of going overseas is changing. New energy product export 277,000 units in first half, year-on-year surge 585%, proportion reached 58%. Zeekr won championships in Thailand, Malaysia, Mexico and other market segmented fields, Geely Galaxy secured top position in multiple countries.

Geely's overseas path has evolved from "exporting whole vehicles" to "systemic export". Overseas production plants 12, capacity over 650,000 units, covering 114 core markets, channels breakthrough 2,000. As Li Shufu said at the Chongqing Forum — "The era of going overseas by relying solely on RoRo ships for cargo has passed, true globalization must practice the concept of win-win cooperation".

After new management team took over, the strategic priority of going overseas will not change. An Conghui long-term led Geely's product R&D and strategic execution, Can Jiayue previously commanded Zeekr during accumulated rich overseas market expansion experience — this combination in going overseas execution power, perhaps compared to Founder era "strategic layout" more landing efficiency.

Full-Domain AI: Not Just "Installing Software on Car"

When it comes to intelligence, many car companies still compare "whose intelligent driving can open more cities". But Geely is thinking about another thing: Full-Domain AI.

What is Full-Domain? Design, R&D, Manufacturing, After-sales, full chain been AI infiltrated. Geely holds the "Sky-Ground Integration" tech ecosystem from chips to Large Models to Satellites — this is the only car company in the world that can do this. In the first half, R&D investment 9.06 billion yuan, year-on-year increase 8%, these money slammed down, replaced not a few flashy functions, but a "1+2+N" multi-agent collaborative framework. Simply put is, others installing AI on cars, Geely using AI to build cars.

From WAM World Action Model to Qianli Haohan G-ASD Intelligent Driving, from Thor AI Electrification 2.0 to God Shield Gold Brick Battery, to AI Off-road Architecture and All-terrain AI Digital Chassis coming soon, Geely's logic is — technology cannot only in lab, must fall to cars, fall to user hands.

One of the new Board's tasks, is ensuring this tech strategy's continuity and execution efficiency. Li Shufu specifically mentioned at performance release, "In terms of enterprise governance dimension, we first take the lead to strictly execute implementation, actively cultivate professional talents, actively build professional teams, creating good governance atmosphere for enterprise culture healthy development." The first challenge after An Conghui took over, is precisely pushing Geely's Full-Domain AI strategy from "Layout Period" to "Realization Period".

Confidence of Betting

If this semi-annual report has what "subtext", it probably is: Geely is no longer that Chinese brand 1.0 era look of relying on "more children good fighting" to run and fence land.

Geely Automobile is more a mature tech company — owning 69.56 billion yuan cash reserve, first half repurchase 1.885 billion HKD, dividend 5.39 billion HKD, year-on-year increase 51.5%. In the industry cold air not scattered, still have confidence to give shareholders money, this is true confidence.

When a company simultaneously in scale, profit, technology, overseas four dimensions are all accelerating, and at governance level completed from founder to professional manager's smooth handover, capital market giving not just valuation repair, but entire narrative logic reset. If saying past few years Geely in capital market experience is "valuation discount" torment, then 2026 might be "valuation premium" starting point.

In 2026 this automotive industry "Triple Decline" year, Geely Automobile with a bright interim performance report, once large-scale management adjustment, proved one thing: Focus, never is contraction, but is to better exert strength. And an enterprise's generational inheritance, never is power replacement, but is value continuation.