Geely Auto (00175) core profit surged 41% in the first three quarters, driving quality growth driven by high-end and overseas expansion
Core profit growth rate > revenue growth rate > sales growth rate. Geely Auto (00175)'s 2026 three-quarter report wrote a realistic footnote on the “quality competition” in the automotive industry.
Stable scale and more emphasis on quality, and profit indicators have been strengthened across the board
Financial reports show that in the first three quarters, Geely achieved total sales volume of 2.235,000 vehicles, an increase of 3% over the previous year, outperforming the industry market. Thanks to the year-on-year increase in average bicycle sales revenue of 12% to 112,000 yuan, the company's total revenue growth rate significantly outperformed sales, and the product value was verified by the market.
In the third quarter, Geely Automobile achieved revenue of 99 billion yuan (RMB, same below), up 10% year on year and 11% month on month, setting a record high for the same period; core net profit to mother was 5.21 billion yuan, up 32% year on year and 2% month on month, reaching a record high. In the first three quarters, Geely Automobile's total revenue reached 272.6 billion yuan, up 13% year on year; core net profit totaled 14.9 billion yuan, surging 41% year on year, forming a high-quality growth pattern of “core profit growth rate > revenue growth rate > sales growth rate”.
The profit side improved at the same time. Gross margin remained stable at 18% in the first three quarters, up 1.5 percentage points year on year. Total gross profit increased by 24% year on year, core net profit to mother rose to 5.5%, and bicycle core net profit to mother was 6,664 yuan, up 37% year on year.
In the face of fierce competition in the industry, Geely Auto's cost control is also remarkable. In the first three quarters, the administrative expense ratio of 1.6% and the sales expense ratio decreased slightly compared to the previous year; R&D investment accounted for 5.5%, and the total investment scale remained stable, improving R&D efficiency under the premise of continuing to increase AI and Sandian core technology.
The improvement in the quality of Geely Automobile's operations comes, on the one hand, from improving internal management efficiency, and on the other hand, from structural changes on the business side. The scale of overseas exports has expanded rapidly, the share of high-end products has increased overall, and the penetration rate of new energy has continued to rise. The share of new energy sales reached 64.9% in the third quarter. Multiple structural factors are driving up profit levels, and behind these changes is Geely Automobile's continuous system restructuring and multi-brand collaborative layout.
“One Geely” system improves efficiency, and the four major brands develop in a balanced manner
Since the release of the “Taizhou Declaration” in 2024, Geely Automobile initiated the integration of the entire R&D, supply chain, manufacturing and sales chain to eliminate internal resource consumption caused by the independent operation of multiple brands. In August 2026, the company's management completed iteration, and An Conghui became the chairman of the board of directors. The company changed from being driven by the founder to the system and professional team; the head sales company was set up simultaneously to integrate the marketing resources of the company's brands.
Through integration, Geely Automobile's four major brands have formed a clear misaligned collaboration. The Galaxy brand has stabilized in the first tier of mainstream new energy. In September, the brand's monthly sales exceeded 130,000 units. Among them, the Galaxy E5 sold more than 10,000 units for four consecutive months, and the Starship 7 continued to break 22,000 units in September; the Galaxy TT and Battleship 700 entered the sports coupe and hardcore off-road blue ocean tracks. Early order performance was strong, and production capacity continued to be released in the fourth quarter.
As the high-end and profit pillar of Geely Automobile, the Krypton brand delivered a total of 288,000 vehicles in the first three quarters, and achieved 96% of the annual target of 300,000, achieving a year-on-month increase of 8 consecutive months. Polar Krypton's revenue has reached 31.3% of the company's total revenue, an increase of 13.6 percentage points over the previous year.
The 500,000 grade Krypton 9X maintained a stable output. For three consecutive months, the Krypton 7X sold more than 10,000, and embarked on a path of sharp rise in volume and price profit in an environment where the industry generally exchanges price for volume. In overseas markets, Krypton's exports in a single month both exceeded 15,000 units in August and September. Exports accounted for more than 40% of its sales, making it representative of China's high-end cars going overseas.
The Lynk & Co brand adheres to the “broadening” strategy and maintains the brand undertone of trendy sports. It neither blindly surges luxury, nor falls into low prices, and dilutes R&D costs by reusing the company's underlying technology. Since August, sales have been picking up steadily. In September, sales volume exceeded 18,000 units, and new energy accounts for more than 90%. New products such as the Lynk & Co 07GT and the new Lynk & Co 20 have opened up market segmentation space, and the Linker 900L will also be launched on the market in the fourth quarter.
Facing the overall decline in the fuel market, China Star chose to use technological upgrades to break through, and sales exceeded 100,000 vehicles in September. I-HEV intelligent hybrid technology has been implemented on a large scale, and the measured fuel consumption is superior to the Japanese hybrid benchmark. As of September, the cumulative sales volume of the series was close to 60,000 units, accounting for more than 40% of the Chinese brand's HEV sales. HEV products not only maintain domestic fuel market share, but also adapt to overseas market environments with weak charging infrastructure, adding important product options to globalization.
“Industrial symbiosis” goes overseas to create a second growth curve
The Zhitong Finance App notes that the overseas business has been upgraded from supplementary business in the past to Geely Auto's second growth curve. In the first three quarters, 798,000 vehicles were exported, up 169% year on year. The export growth rate ranked first among mainstream domestic car companies; of these, 484,000 new energy vehicles were exported, an increase of 531% year on year. In the third quarter, 323,000 vehicles were exported in a single quarter. Overseas sales accounted for nearly 40% of the company's total sales, and exports have exceeded 100,000 units in a single month for four consecutive months. The company is making every effort to hit the target of exporting 920,000 to 1 million vehicles for the whole year.
Unlike simple vehicle export sales, Geely Automobile implements an “industrial symbiosis” overseas model and relies on cooperative construction to suit different regional markets. Europe allocates production capacity with Ford and Volvo; ASEAN relies on Proton factories to build regional hubs; Latin America and Renault deepen manufacturing and supply chain collaboration; Eastern Europe and Central Asia use the KD assembly model to penetrate tariff barriers with light assets; and North Africa uses the Egyptian plant as a fulcrum. Currently, Geely Automobile has 13 overseas production plants, with an overseas production capacity of more than 840,000 vehicles, and its sales and service network covers more than 100 countries and regions.
For the European market, Geely is promoting the “in Europe, for Europe” localization strategy and building a Dutch parts distribution center. The joint venture plant with Ford is expected to be put into operation in the second half of next year, and the number of local channels in Europe will reach 1,000 by the end of the year. The four major brands have also planned an exclusive global flagship model matrix to target the five major regional markets of Pan-Europe, ASEAN, Latin America, Africa, Eastern Europe, the Middle East and Central Asia, paving the way for hitting the target of 2 million vehicles sold overseas in the next two to three years.
Consolidate the “moat” of technology and enter the product release window in the fourth quarter
The Zhitong Finance App has observed that the capital market's valuation logic for automakers is undergoing profound changes. Simple sales volume is no longer the core of pricing. Self-developed technical reserves and full-link intelligent capabilities are gradually becoming the key to widening the valuation gap.
In the context of industry competition shifting from scale competition to system capability competition, Geely proposed the position of “global AI smart car leader”, integrating AI capabilities throughout the entire business chain of design, R&D, manufacturing, and energy supplementation to build the underlying pillar of long-term product competition.
In terms of the energy replenishment system, Geely introduced megawatt-level smart charging technology. The peak value of a single gun can reach 2.25 megawatts. It relies on AI temperature control and full-link liquid cooling to achieve a balance between fast charging speed and battery safety. The 800V high voltage platform has been lowered to 100,000 mainstream models, while the high-end product line is equipped with a 900V hybrid system. At the same time, Geely and NIO reached a strategic cooperation on charging and switching. The NIO charging gun was connected to the Geely Smart Charging Network to accelerate the expansion of the energy replenishment infrastructure. According to the plan, the target number of smart charging stations will reach 6,000 by the end of 2026.
In terms of intelligent driving and cockpit, the total mileage of the Qianli Vast Smart Driving System has exceeded 3.14 billion kilometers, obtained the EU UN R171.01 smart driving certification. The city NOA function has already been implemented in Paris, laying the foundation for smart driving capabilities; the Flyme Auto in-vehicle system added more than 1.326 million units in the first three quarters. In the fourth quarter, Qianli Haohan G-ASD will usher in a version upgrade, and the global AI capability plan will spread to multiple brands.
Standing at the fourth quarter point, the aforementioned innovative technologies will be implemented in actual vehicles one after another, supporting various iterations and new models. According to the company's comprehensive product plan, the fourth quarter will intensively promote the launch and iteration of new vehicles at home and abroad: in the domestic market, China Star will expand the iHEV hybrid matrix, and Xingyue L PLUS will be launched one after another; Galaxy M8 plans to launch in the fourth quarter, and it is expected that new products launched in the early stages, such as Galaxy TT and Battleship 700, will continue to be released; Lynk & Co plans to launch a new 900L; Extreme Krypton will renew 2027 Extreme Krypton 7X and Extreme Krypton 009 Brilliant products. At the overseas level, Extreme Krypton 9X and Extreme Krypton 009 will simultaneously launch overseas sales, accelerate the process of high-end models going overseas, and multiple growth catalysts will be concentrated.
Conclusions
Through Geely Automobile's three-quarter report, it is easy to see that the company is implementing a contextual and sustainable high-quality development path. Relying on internal system integration, technology iteration, high-end breakthroughs and a global layout, we break out of the industry price internal volume and achieve value growth with comprehensive system capabilities. Being in a cycle of deep adjustment in the automotive industry, Geely Auto balances business scale and operating efficiency, and has become a typical example for domestic car companies to shift from scale expansion to value growth. Looking ahead, with the continuous release of multiple efficiency, technology, and brand dividends under the “One Geely” strategy, the company is expected to participate deeply in the competitive game of the global automobile market with a more steady business undertone.