Geely Automobile Holdings Ltd (GELYF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

In the first half of 2026, the auto industry in China is highly competitive. Many automakers are running at a loss. The average profitability for auto industry in the first half of 2026 has reached 1.6%. and it is in this context that we achieved close to 10 billion revenues attributable to shareholders. So our profitability, our profit margin rate is about 5.6%. Way above the industry average. So I would say that this is a wonderful business performance for Geely during the first half of 2026. My third observation is that this financial statement is Not that surprising for the first half of this year. The auto industry in China has faced the most challenging scenarios never met before in the past 20 years. The total sales units witnessed a double digit decline in the first half of 2026 in the Chinese market. and we've seen a rapid increase in the price of chips and other raw materials. So the competition is quite through cutting in the auto industry. Despite the fact that the dealer auto has enjoyed historic records in terms of sales revenue and business margin of great trajectory, has inevitably been impacted by this negative trend in the auto industry in China. So I would say this is a wonderful financial statement, but it is not that surprising. This is my third observation. My fourth viewpoint is the one that I would like to share with you the most. And this financial statement is a sustainable one. I believe that you're very much interested in my fourth point. Systematic capabilities, strategic resilience, as well as the pursuit of long-term value creation capabilities are the three key pillars to support my fourth point of view. The competition in the modern auto industry goes beyond product itself. It's the competition of different systems, strategic resilien...