Geely Automobile Q3 profit up 59%, Zeekr deliveries up 13% year-on-year | Earnings Report News

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Geely Automobile announced on the Hong Kong Stock Exchange that in the third quarter of 2025, the Group saw simultaneous growth in sales of fuel vehicles and new energy vehicles, driving total sales to a rapid increase of 43% to 761,000 units. Revenue for the third quarter of 2025 grew by 27% year-on-year, reaching RMB 89.192 billion. The profit attributable to the parent company's owners for the third quarter of 2025 was RMB 3.8 billion, an increase of 59% year-on-year.

Zeekr delivered about 140,000 units in total in the third quarter, a year-on-year increase of 13%, achieving revenue of approximately RMB 31.6 billion. As of the end of October, Geely Automobile achieved sales of 2.477 million units for the year, with an annual target of 3 million units, completion rate at 82.6%. In the fourth quarter, Geely plans to launch several new and facelifted models including the Geely Galaxy Xingyao 6, to help achieve the annual sales target.

On the 17th, Geely Automobile released its Q3 2025 financial report:

In the third quarter, Geely Automobile achieved operating revenue of RMB 89.2 billion, up 15% quarter-on-quarter and 27% year-on-year, setting a new historical high for single-quarter revenue.Net profit attributable to parent company owners in the third quarter was RMB 3.8 billion, up 59% year-on-year. Core net profit attributable to parent in the third quarter was RMB 3.96 billion, a year-on-year increase of 19%.Gross profit for the third quarter reached RMB 14.8 billion, a quarter-on-quarter increase of 11%.

Growth in Both Sales and Profit, Scale Effect Emerging

Geely Automobile's third-quarter growth clearly demonstrates the results of scale effect and cost optimization. The financial report indicates that third-quarter total sales growth (43%) significantly exceeded revenue growth (27%), while net profit growth (59%) outpaced both, indicating an improvement in company profitability. The company attributes this to "scale effect, cost control and brand synergy."

In the first three quarters of this year, Geely Automobile's cumulative net profit was RMB 13.11 billion, a slight decrease of 1% year-on-year. This discrepancy is mainly due to a recorded gain of about RMB 7.7 billion from the "deemed disposal of subsidiaries" in the same period last year. Excluding such one-off items, the adjusted net profit reflecting core business performance grew by 59% year-on-year in the first nine months, reaching RMB 10.62 billion.

Zeekr Gross Margin Rises, Losses Narrow Significantly

As Geely's high-end smart electric vehicle brand, Zeekr's performance is a market focus. According to disclosures, Zeekr delivered about 140,000 units in the third quarter, up 13% year-on-year, achieving revenue of approximately RMB 31.6 billion.

Especially notable is the improvement in its profitability. Zeekr's third-quarter gross profit reached RMB 6.0 billion, a 50% year-on-year increase; gross margin rose significantly from 13.9% (restated) in the same period last year to 19.0%, an increase of 5.1 percentage points. Over the first nine months, Zeekr’s losses narrowed sharply from RMB 2.375 billion in the same period last year to RMB 523 million, indicating steady progress toward profitability.

On the balance sheet, the financial report shows that as of September 30, 2025, Geely Automobile recorded net current liabilities of approximately RMB 7.874 billion.

Accounting Standards Changed, Prior Financials Restated

One of the most significant changes in this financial report is the change in accounting policy. Since January 1, 2025, Geely Automobile has changed the accounting for business combinations under common control from "purchase method" to "merger accounting principles" (equity method), and retrospectively restated prior financial reports.

According to the announcement, this move aims to more accurately reflect the economic substance of internal restructuring within the Group, improve the transparency of financial reporting, and align with international practices. This change directly affects the accounting treatment of acquisitions of Lynk & Co and several dealers. As these entities are under the common control of major shareholder Li Shufu before and after combination, goodwill or acquisition gains are no longer recognized; instead, assets and liabilities are merged at their original book value.

This change caused comparative financial data for 2024 to be fully restated. For example, after restatement, revenue for the first three quarters of 2024 was adjusted from the original RMB 167.684 billion to RMB 189.534 billion, with gross profit adjusted accordingly. Investors must base year-on-year analysis on the restated data to ensure comparability.

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