On March 20th, Geely Automobile (00175.HK) announced its financial report for 2023, and the company achieved an operating income of 179.2 billion yuan, a year-on-year increase of 21%, a record high. The net profit of returning to the mother reached 5.308 billion yuan, compared with 3.511 billion yuan after deducting the one-time bargaining acquisition income in 2022, a year-on-year increase of 51%; The net cash level increased by 46% year-on-year to RMB 28.4 billion, and the reserves were abundant and stable.

The financial report shows that Geely Automobile’s profitability has improved significantly, and the gross profit situation has improved due to product structure optimization, cost reduction and scale effect. The total gross profit has increased by 31% year-on-year to 27.4 billion yuan, and the gross profit margin has increased from 14.1% in 2022 to 15.3% in 2023.

Behind the bright financial data is the strong market growth potential of Geely Automobile. According to the data of the Federation, in 2023, the cumulative retail volume of domestic passenger cars was 21.699 million, a year-on-year increase of 5.6%. Under the background that the overall growth of the automobile industry is slowing down and the market competition is becoming increasingly fierce, Geely Automobile has exceeded its annual target of 2023, with a cumulative sales volume of 1,686,500 vehicles, up about 18% year-on-year, and its annual sales volume has reached a record high. At the same time, Geely Automobile has also become one of the few car companies that successfully completed the annual sales target.

It is worth noting that the new energy vehicle business has become a strong support for Geely’s performance growth. In 2023, the domestic new energy vehicle market still maintained a growth trend, and the cumulative wholesale sales volume of new energy passenger cars was 8.864 million, a year-on-year increase of 36.3%.

In this context, Geely Automobile’s sales of new energy vehicles still outperformed the broader market in 2023, with a year-on-year increase of 48%, a penetration rate of 29%, and a monthly penetration rate of over 40%.

Among them, the brand-new middle and high-end new energy brand "Geely Yinhe" series has rapidly brought three products, namely Yinhe L7, Yinhe L6 and Yinhe E8, to the market since it was released in February last year, forming a product layout of pure electric+hybrid electric, car +SUV in the mainstream new energy market, and achieving a cumulative sales volume of over 110,000 vehicles in nine months after listing. Since the release of the brand, Geely Galaxy has continuously strengthened its "high-value reputation", and its models are equipped with self-developed Aegis battery safety system, Raytheon hybrid, Galaxy N OS and other technological configurations, becoming the "king of volume" in the mainstream new energy market.

At present, the Krypton brand has firmly established itself in the luxury intelligent pure electric market. 2023 is a year of accelerated evolution of Krypton, and two new models have been launched, and the product matrix continues to expand. In 2023, a total of 118,700 vehicles were delivered, a year-on-year increase of 65%. As of December 31, 2023, the cumulative delivery of Extreme Krypton brand exceeded 190,000, setting a new record for the delivery speed of new forces, and its four models have become the benchmark of market segments.

In addition, the electrification transformation of the Lectra brand has also achieved good results. In 2023, Lectra brand launched a number of new energy vehicles equipped with plug-in hybrid technology, such as Lectra 09, Lectra 08 and Lectra 06. Among them, the sales volume of LEEK 08EM-P increased steadily after its listing, and it became a hot-selling product in the high-end plug-in SUV market. According to the data in December 2023, the new energy vehicles of the Lectra brand account for 55.3% of the total monthly sales, and the electrification transformation is expected in the future.

At the same time, Geely Holding Group has owned a number of listed companies, which also provides a more solid foundation and support for Geely Automobile’s future performance growth. For example, Lotus, which recently listed on the US stock market, has aroused widespread concern in the industry.

"The listing of sub-brands including Lotus has important positive significance for consolidating the core business of Geely Holding. Geely Holding and its global strategic partners have maintained continuous, stable and growing cooperation for a long time in terms of technology authorization and technology research and development services. The development of sub-brands has created a good foundation for Geely Holding’s internal collaboration and cooperation with Geely Automobile based on the principle of marketization, and also brought opportunities for revenue growth for Geely Automobile Group. " Li Donghui, CEO of Geely Holding Group, Vice Chairman and Executive Director of Geely Automobile Holdings Limited, said.

At present, the competition of electric vehicles has entered the intelligent competition in the second half. It is very important for major car companies to master the core technologies in the intelligent field and apply them on a large scale, which is also the key to win the competition.

For Geely Automobile, intelligence is also its key business area. In 2023, Geely Automobile’s strategic layout in intelligence gradually ushered in the "harvest period", and the results of "Smart Geely 2025" successively landed.

For example, in February 2023, Geely Star Smart Computing Center was officially launched, becoming a smart computing center with leading self-built equipment scale, leading comprehensive computing power, leading business coverage, leading intelligent support capability and high security level among domestic car companies. In January, 2024, Geely Xingrui AI model was officially released, leading the AI era of China automobile in full scene.

In the field of intelligent driving and intelligent cockpit, the satellite communication technology of "integration of heaven and earth" has been initially constructed. At present, two orbital surfaces have been launched and deployed, and there are 20 satellites in orbit. Geely Yinhe E8 and Kyk-krypton 007 models have taken the lead in carrying self-developed satellite communication technology. In the case of no ground network coverage or damage to the ground network, users can send and receive satellite messages through the car to realize safe travel and "never lose contact".

In addition, the Geely NOA advanced intelligent driving assistance system and the Lectra NOA intelligent driving system have been opened, and the extremely high-speed autonomous navigation assistance of NZP has been opened in 22 cities including Shanghai, Hangzhou and Guangzhou. Starting from the second quarter of this year, the city NZP will also open the first batch of users’ public beta in the national core cities.

Thanks to the core intelligent technology, Geely Automobile’s product strength has grown strongly, and in the new round of market ‘ Inner volume ’ It is expected to form differentiated competition and win the initiative. In the beginning of 2024, the domestic auto market set off a new round of "price war", and the competition was extremely fierce. Under this background, Geely Automobile broke through the tight encirclement and ushered in a "good start". From January to February, the cumulative sales volume of Geely Automobile was 324,900 vehicles, up by over 55% year-on-year, among which the sales volume of new energy vehicles was 99,300 vehicles from January to February, up by 208% year-on-year.

"In 2024, the competition in China’s automobile industry will be more intense, and the knockout round will begin in an all-round way. The industry will enter the integration period and reshuffle. Geely Automobile adheres to the basic practice of internal strength and long-term, and insists on quality first and safety first for a long time. At the same time, it gives full play to the advantages of scale, systematic efficiency and innovation ability, improves product quality and achieves cost reduction and efficiency improvement. " Yan Jiayue, CEO of Geely Automobile Group, said.

The profound technical background and constantly evolving product strength have given Geely Automobile the confidence to continue to soar. In 2024, Geely Automobile set an annual sales target of 1.9 million vehicles, up about 13% year-on-year, of which 810,000 vehicles were new energy vehicles, up more than 66% compared with the total sales achieved in 2023, and the penetration rate of new energy increased from 29% in 2023 to 42.6% in 2024.

At the product level, Geely Automobile accelerated the iteration, launched a new round of product offensive, and continued to push the brand upward. In 2024, Geely brand will push three new energy products; The lectra brand will push three brand-new new energy products, and the first new energy medium-sized car, Lectra 07 EM-P, will be launched in May. Extreme brand will push three new energy products.

Shen Wanhongyuan said in the research report that in the complicated competitive environment, only the brand is the element that can be remembered and preserved by the market. Geely, Link, and even Krypton have all proved Geely’s brand operation ability. Shen Wanhongyuan is still optimistic about the high-quality independent brand enterprises that insist on operating brands, and believes that they will eventually occupy a bigger sky after the big waves.

(This article does not constitute any investment advice, and the information disclosure content shall be subject to the company announcement. Investors operate accordingly at their own risk. )

　 　 　 　 CCTV News:The State Administration of Press, Publication, Radio, Film and Television recently released a report on China’s game industry in the first half of this year. The report shows that in the first half of this year, the actual sales revenue of China’s game market reached 99.78 billion yuan, up 26.7% year-on-year, nearly four times the total box office of China’s film industry in the first half of this year.

　 　 　 　 The rise of mobile games occupies half of the country.

　 　 　 　 According to the statistics of the industry report released by the General Administration of Press, Publication, Radio, Film and Television, the number of game users in China has exceeded 500 million in the first half of this year. With the further development of mobile internet technology, the number of users of client games and web games has declined, and the number of mobile game users has increased by 7.5%, reaching 435 million. Correspondingly, the sales revenue of the mobile game market in the first half of this year has reached 56.1 billion, which doubled year-on-year.

In the first half of the year, the sales revenue of the mobile game market reached 56.1 billion, which doubled year on year.

　 　 　 　 Paying attention to independent research and development, and laying out long-term mobile games has become the main strategy of game enterprises. Taking military games as an example, at present, domestic self-developed game products, including Battleship Hunter, world of tanks, World Military, etc., have firmly attracted 80 million fans and become typical representatives in the vertical segmentation field of domestic games.

　 　 　 　 In addition, the report also shows that with the continuous expansion of the market scale of China’s game industry, the degree of concentration of the game industry is getting higher and higher, and enterprises are also expanding and integrating from simple game development to cultural pan-entertainment industries such as network, movies and television. For example, there are more than 700 games on the mobile game platform of Sanqi Mutual Entertainment, with more than 580 million players on the page game platform and more than 65 million overseas registered users. With the help of the user resources and market operation of online games, mobile games and overseas business platforms, the industrial chain of Sanqi Mutual Entertainment Pan-Entertainment has also been continuously expanded, and the development of pan-entertainment such as film and television, show and animation has been achieved.

　 　 　 　 Cultural confidence, strong export of original games

　 　 　 　 According to the data of the semi-annual report of the game industry, in the first half of this year, the overseas market income of China’s independent research and development of online games was 3.99 billion US dollars, about 26.7 billion yuan, up 57.7% year-on-year. The independent research and development of game products with China elements became the main growth driving force for accelerating the expansion of overseas markets.　

Game companies pay more attention to research and development of connotative products with China cultural symbols.

　 　 　 　 Excavating traditional culture, implementing the boutique strategy and taking the best-selling and long-selling route have become the main means and goals for powerful enterprises to expand overseas markets. More and more game companies pay more attention to the research and development of products with China cultural symbols. Statistics of gamma data, professional analysis data from the game industry, are adapted from Jin Yong’s martial arts novels, such as The Legend of the Condor Heroes and The Legend of the Dragon Slayer, and Zhu Xian, which is adapted from the story of Shan Hai Jing, have received good market response in overseas markets and maintained an average annual growth rate of 20%.

　 　 　 　 When the game goes overseas, not only the story should be beautiful, but also the channels should be accessible. Powerful enterprises have begun to set up R&D centers overseas. With the help of six R&D centers established in Shanghai, Singapore, Germany and other places, more than ten domestic game products, such as Legendary World, legend of mir and Dragon Valley, have entered more than 100 countries and regions. Some games have more than 1 million online users at the same time, and the number of active users of Legendary World has been among the top ten in the world for many years.　

　 　 　 　 E-sports market revenue of 36 billion, an increase of more than 40%.

　 　 　 　 The game industry report released by the State Administration of Press, Publication, Radio, Film and Television also shows that from January to June this year, the actual sales revenue of the e-sports game market reached 36 billion yuan, up 43.2% year-on-year, accounting for nearly 40% of the total game industry revenue.

In the first half of the year, more than 100 large and medium-sized e-sports events were held in China.

　 　 　 　 According to the report data of the game industry in the first half of the year, at present, the global users of Knife Tower 2 exceed 100 million, while the players in China account for 12.6%. E-sports has not only loyal players, but also loyal audiences. According to the report, 35% of the audience in China spend six hours a week watching professional e-sports competitions, just like watching sports events. In the first half of the year, more than 100 large and medium-sized e-sports events were held in China. It is estimated that the total prize money for this year will exceed 64 million US dollars, about 430 million yuan. In 2010, the scale of China’s e-sports market was only 4.41 billion yuan, which increased tenfold in six years. China’s e-sports is gradually changing from a follower of the world’s e-sports to a leader and leader.

Easy and casual esports games are favored by players.

　 　 　 　 In addition, in the e-sports market, in addition to highly antagonistic game products, some relaxed and casual e-sports games are also favored by players. A game called "Ball Fight" is loved by all age groups because of its various operating modes and strong interactivity. It has more than 300 million users worldwide and has become a light e-sports game with the largest number of players in the world.

　 　 　 　 Industry experts believe that China’s e-sports industry has grown rapidly and benefited from the optimization of the industrial environment. Last year, the General Administration of Press, Publication, Radio, Film and Television organized the "China Original Game Boutique Publishing Project"; The Ministry of Culture also issued a document to support the creation of regional, national and even international game entertainment competitions; In addition, the Ministry of Education listed "E-sports and Management" as one of the 13 supplementary majors in colleges and universities in 2017.　

　 　 　 　 Experts pointed out that China’s game industry still needs innovative ways to train talents to accelerate its development and achieve stability. We can find and train talents through various ways such as joint recommendation and training by enterprises and colleges, and competition selection and training.

　　China Securities Network News (Reporter Confucius Yuan) China Petrochemical announced that the company recently received a reply from the China Securities Regulatory Commission, agreeing to the company’s registration application for issuing shares to a specific target. The plan of this issuance is to issue A shares in full to China Petrochemical Group, the controlling shareholder of the company, at the average transaction price of the company’s A shares in the 20 trading days before the pricing benchmark date. All the funds raised in this issuance will be invested in the project construction in the fields of clean energy and high value-added materials.

　　Faw-Volkswagen’s golf has added two new models, namely, Le Xiang Edition and Da Ren Edition, of which the official guide price of Pro280TSI Le Xiang Edition is 151,300 yuan, and the official guide price of Pro280TSI Da Ren Edition is 153,300 yuan. The two new models have been further upgraded in terms of comfort and technology configuration. At present, the official guidance price range of the eighth generation digital golf is 129.8 ~ 165.8 thousand yuan. In order to further meet the needs of consumers, FAW-Volkswagen added Golf Pro280TSI Lexiang Edition and Daren Edition, which further improved the comfort and technology configuration. Among them, Lexiang Edition was equipped with an electric seat bag, and Daren Edition was equipped with an electric seat bag and a smart interconnection bag. In addition, the purchase of any golf model also provides two digital package configurations free of charge for a limited time: digital key 2.0 and AR real navigation system (including driving recorder).

　　During the event, FAW-Volkswagen Golf upgraded the digital key 2.0 and AR real-life navigation system (including driving recorder). The digital key 2.0 can realize remote car control by mobile phone, including more than 10 practical functions, such as remote start and stop, one-button cold car hot car, remote air conditioning temperature control, remote door lock release, GPS navigation and car search, which greatly improved the convenience for users to interact with their cars. AR real-life navigation system (including driving recorder), through panoramic AR display, drivers can obtain navigation information and driving images more easily and intuitively, reduce misjudgment caused by unclear, and improve driving safety. The navigation can also be seamlessly integrated with the ADAS system of the vehicle, and provide more accurate navigation guidance and driving advice by obtaining the data of vehicle sensors in real time.

　　In terms of technological value-added, Golfers Edition is specially equipped with smart interconnection package and upgraded to a new interactive CNS3.0 intelligent car navigation infotainment system with a 10-inch touch color screen, which integrates rich infotainment functions and brings a minimalist and intelligent operation experience; Moreover, you can send navigation maps and share mobile music through the mobile APP. In addition, the instrument has also been upgraded to a 10.25-inch high-end full liquid crystal digital instrument (FPK Medium), and a car networking system with intelligent car control, intelligent navigation, intelligent voice and intelligent entertainment has been added.

　　The overall style of the interior inherits the driver-centered design concept of golf. The design of the double screen is separated from the central control area, which makes the screen form more free and the size further expanded. The strong sense of suspension generated by the independent screen forms a brand-new Floating Design framework. The full-touch control mode not only greatly enhances the technological sense of the interior, but also conforms to the humanized design, so that all the operations of the driver are within reach. Both the Golf Enjoyment Edition and the Daren Edition are equipped with electric seat bags, and the main driver’s seat has 10-way electric adjustment (with 4-way lumbar support) and memory function, in which the seat memory function can be SET by the set button or bound with the car account, so that every driver can easily enjoy convenient and personalized service.

　　Golf Enjoy Edition and Talent Edition also retain the original all-weather LED headlight design, and the luminous LED headlights cooperate with the tension shape connected with the grille to break the conventional layout form and highlight a stronger sporty atmosphere. At the same time, a large number of intelligent technologies are applied to meet the needs of users in appearance. For example, a multifunctional rearview mirror integrating electric folding, electric adjustment, heating and defrosting, and LED turn signal is adopted, which automatically folds when parking, and the passenger’s side exterior rearview mirror automatically turns over when reversing, and the downward turning position and angle can be set individually, presenting a better view for drivers and passengers. (Source: FAW-Volkswagen)