Chinese automotive manufacturer Geely beat expectations for 2022 revenue by sending shares on Wednesday.
Geely shares rose as much as 7% before leveling off at nearly 3% above the previous close.
Geely reported this Revenue in 2022 increased by 45.6% from a yr ago to 148 billion yuan ($21.49 billion), while profit rose 8.5% to five.26 billion yuan. Analysts expected Geely to report 135.4 billion yuan in revenue, in response to Refinitiv’s consensus estimate.
The company described this as “resilient financial and operational performance … achieved despite difficult market conditions and ongoing disruptions related to the pandemic.”
Geely said total sales rose 8% last yr to greater than 1.4 million units. CEO Daniel Li told CNBC’s “Squawk Box Asia” that the figure was higher than China forecasts 5%. for the entire automotive industry.
The company said its high-end models accounted for 23% of total sales in 2022, or 252,787 units.
EV plans
Geely said it has made “significant progress” in increasing sales of its recent energy and electrified models, as sales increased by greater than 300% to greater than 328,000 units last yr.
For 2023, Geely has set a sales goal of 1.65 million units and said it goals to double the share of sales of recent energy-powered and electrified vehicles.
In an effort to realize this goal, Li said the company would depend on collaboration in its supply chain, which might allow it to cut back costs after which selling prices.
“In the long run, undoubtedly, EV [prices] will probably be on par with [internal combustion engine] cars, he added.
The company’s associates include: Mercedes, Renault and Aramco in efforts ranging from revival of the all-electric Smart brand to a recent enterprise related to internal combustion technologies and hybrid powertrains.
Li said Geely and Renault aim to supply 7 billion engines and transmissions a yr and are “open” to providing services and support to other brands transitioning from ICEs to electric cars. He said Aramco would supply financial support and that each automakers would have the option to “make the most” of Aramco’s recent sustainable fuels.
Zeekra IPO in the US?
In December 2020, Geely said its electric automotive brand, Zeekr, had filed for an initial public offering in the US without providing any details on size or potential IPO date.
When asked about the status of the IPO, Li simply said the company had “began the process” and that it was “still ongoing”, adding that the company would release information sooner or later.