2024-03-20 13:57:02 ET
Geely Automobile Holdings Limited (GELYF)
Q4 2023 Results Conference Call
March 20, 2024 4:30 AM ET
Company Participants
Dai Yong - CFO
Sheng Yue Gui - CEO
Dong Hui Li - Executive Vice Chairman
An Cong Hui - Executive Director
Conference Call Participants
Bin Wang - Deutsche Bank
Presentation
Operator
…Automobile Holdings 2023 Annual Results Announcement. My name is [indiscernible]. Let me introduce the leaders present today.
Daniel Donghui Li, Chief Executive Officer of Geely Holding, Executive Director and Vice Chairman of Geely Automobile Holdings; Andy An, President of Geely Holding, Executive Director of Geely Automobile Holdings Limited and CEO of Zeekr; Shengyue Gui, CEO and Executive Director of Geely Automobile Holdings Limited; Jerry Gan, CEO of Geely Automobile Group, Executive Director of Geely Automobile Holdings Limited; the CFO of Geely Automobile Group, General Manager of Finance Center, Dai Yong. We have 3 parts to this presentation. We will have Mr. Dai Yong to go through the slides, and then, we will have Mr. Gui for a short remark, and then, we will invite questions from the media and investors physically presented here and also online.
Now the floor is yours, Mr. Dai.
Dai Yong
Well, thank you very much. Dear media friends and investors, I'm Dai Yong. Thank you very much for taking your time to attend Geely's 2023 annual result announcement. In the past year, Geely has made remarkable achievements in various aspects.
First of all, in terms of the sales volume, we set a number of new highs in 2023. The total sales exceeded the target of 1.65 million we set at the beginning of the year, reaching 1.687 million vehicles with a year-over-year growth of 17.7%. Also for the NEVs, we sold 487,000 vehicles, up 48%, exceeding the general market. Now we had completed our new energy transformation and become a mainstream NEV group. For export, we did 274,000 overseas market exports with a total account for 16% of the sales.
With the increasing product value and the business diversification, our revenue reached RMB 180 billion with over 21% increase. Out of the revenue of finished vehicle was nearly RMB 150 billion with an increase of 22% year-over-year, further consolidated our core basic business. At the same time, revenue of other businesses such as auto parts and battery packs have reached RMB 30 billion with an increase of 18% year-over-year. In the year of 2023, our core profitability significantly increased. The profit attributable to shareholders increased slightly by 1% to RMB 5.3 billion, but if compared to the same caliber and we exclude the premium income of RMB 1.75 billion from onetime subscription of Renault Korea in 2022, the profit attributable to shareholders increased by 51%.
The first half of the year, we had RMB 1.57 billion and the second half RMB 3.74 billion, up by 138% month-over-month, meaning that we have a better profitability in the second half of the year. In terms of the gross profit, we optimized our product structure, and our gross profit increased by 31.82% year-over-year to RMB 27.4 billion. With an increase of new energy sales -- vehicle sales, the gross profit margin increased by 1.2 percentage points to 15.3%. And our management efficiency had led a decrease of 0.1% in terms of the administrative and general expenses. The channel diversification increased the sales expense ratio by 1%.
But this is mainly due to active development of domestic and foreign channels. The operating profit margin still increased by 0.4%. So thanks to a good business performance, we have achieved abundant cash reserves with a record high of RMB 36.8 billion, and net cash level increased also to RMB 28.4 billion with sufficient cash reserves to support our future development. While making profits, we are also giving our investors a stable and high cash dividend. In recent years, dividend payout rate of the company is supposed to be HKD 0.22 and payout ratio is 39.3%....
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Geely Automobile Holdings Limited (GELYF) Q4 2023 Earnings Call Transcript