Geely Auto Reports Net Profit of 13.9 Billion Yuan in First Three Quarters, Up 7% YoY
nashnova research
Geely Auto's nine-month net profit rose 7% to RMB 13.9 billion, but strip out forex drag and core profit surged 41% — the gap between the two numbers exposes just how much currency swings are masking the real operating improvement.
Revenue up 13%, volume up only 3% — where did the extra money come from?
Nine-month revenue hit RMB 272.6 billion, up 13% year-on-year; volume reached 2.236 million units, up just 3%.
This means → Geely is not selling many more cars, but each car is selling at a higher price.
The company attributes the gap to sharply higher export volumes and a rising share of high-value models. In plain terms = more cars sold overseas, plus a richer product mix at home — the revenue per unit is climbing.
Net profit up only 7%, yet core profit up 41% — what explains the gap?
Nine-month core profit reached RMB 14.9 billion, up 41%; net profit was RMB 13.9 billion, up just 7%.
This means → the underlying business is improving far faster than the headline profit suggests.
The wedge: Geely booked a net forex loss this year, versus a net forex gain in the same period last year. In plain terms = currency swings acted like a filter, dimming the picture of what the operations actually delivered.
How did the third quarter alone look?
Q3 revenue came in at RMB 98.96 billion, up 10%; net profit was RMB 4.84 billion, up 28%; volume hit 812,500 units, up 7%.
The single-quarter profit growth of 28% far outpaced the cumulative 7% for the first nine months. This reflects an acceleration in earnings momentum.
This means → if Q4 sustains this pace, full-year net profit growth should come in well above the nine-month run rate.
What should investors watch next?
Forex volatility remains the biggest wild card — it already opened a gap of nearly RMB 1 billion between core profit and net profit over nine months.
This means → when the market sizes up Geely's full-year results, core profit growth is a more reliable gauge of the true operating trend than net profit growth.
Put simply = to judge whether Geely is actually making more money, look at core profit first; the forex layer is weather, not fitness.
市场有风险，内容仅供研究参考，不构成投资建议。