Geely Automobile Holdings, the centerpiece of billionaire Li Shufu’s automotive empire, posted earnings that beat estimates and forecast further sales growth this year.
Net income rose 9 percent to 5.26 billion yuan ($764 million) in 2022, the company said in a statement Tuesday, beating analyst estimates of 4.85 billion yuan, according to data compiled by Bloomberg. Revenue climbed 46 percent to 147.96 billion yuan.
“During the year, the group sharpened the operational focus on new-energy transformation and significantly accelerated the pace toward this end,” the company said. “The sales volume of new-energy vehicles sold by the group’s two 50 percent-owned joint ventures increased drastically,” it added.
While revenue climbed, the surging costs of batteries, chips and other components, as well as investments in Zeekr — the company’s new electric-vehicle brand — put pressure on profitability.
NEVs, which are accounting for a bigger proportion of the company’s lineup, also have lower margins than gasoline-powered light vehicles. Overall, gross margin fell 3 percentage points last year to 14.1 percent, Geely said.