Geely Auto Q3 profit increased by 59%, ZEEKR delivery volume grew by 13% year-on-year | Financial Report Insights
Geely's net profit in Q3 soared 59% year-on-year to RMB 3.82 billion, mainly benefiting from the simultaneous boost in sales of fuel vehicles and new energy vehicles, driving total sales up 43% to 761,000 units, with revenue increasing by 27% year-on-year. ZEEKR's total delivery volume in Q3 was approximately 140,000 units, a year-on-year increase of 13%, achieving revenue of approximately RMB 31.6 billion
Geely Auto announced on the Hong Kong Stock Exchange that in the third quarter of 2025, the sales of both fuel vehicles and new energy vehicles achieved synchronized growth, driving total sales to a rapid increase of 43% to 761,000 units. The revenue for the third quarter of 2025 increased by 27% year-on-year, reaching RMB 89.192 billion. The profit attributable to the parent company for the third quarter of 2025 was RMB 3.8 billion, a year-on-year increase of 59%.
ZEEKR's total delivery volume in the third quarter was approximately 140,000 units, a year-on-year increase of 13%, achieving revenue of approximately RMB 31.6 billion. As of the end of October, Geely Auto has achieved a cumulative sales volume of 2.477 million units this year, with an annual sales target of 3 million units, achieving a completion rate of 82.6%. In the fourth quarter, Geely Auto plans to launch multiple new and updated models, including the Geely Galaxy Star 6, to ensure the smooth achievement of the annual sales target.
On the 17th, Geely Auto released its Q3 2025 financial report:
- In the third quarter, Geely Auto achieved operating revenue of RMB 89.2 billion, a quarter-on-quarter increase of 15% and a year-on-year increase of 27%, with quarterly revenue reaching a historical high.
- The profit attributable to the parent company for the third quarter was RMB 3.8 billion, a year-on-year increase of 59%. The core net profit attributable to the parent company in the third quarter was RMB 3.96 billion, a year-on-year increase of 19%.
- The total gross profit in the third quarter reached RMB 14.8 billion, a quarter-on-quarter increase of 11%.
Sales and Profit Both Increase, Scale Effect Evident
Geely Auto's performance growth in the third quarter clearly demonstrates the results of scale effects and cost optimization. The financial report pointed out that the total sales growth rate (43%) significantly exceeded the revenue growth rate (27%), while the net profit growth rate (59%) surpassed both, indicating an improvement in the company's profitability. The company attributes this to "scale effects, cost control, and brand integration synergy."
In the first three quarters of this year, Geely Auto's cumulative net profit was RMB 13.11 billion, a slight year-on-year decrease of 1%. This contrast is mainly due to a recorded gain of approximately RMB 7.7 billion from "deemed disposal of subsidiaries" in the same period last year. Excluding such one-time items, the adjusted net profit that better reflects core business performance increased by 59% year-on-year in the first nine months, reaching RMB 10.62 billion.
ZEEKR Gross Margin Improvement, Losses Narrowed Significantly
As Geely's high-end smart electric vehicle brand, ZEEKR's performance is a focal point of market attention. According to disclosures, ZEEKR's total delivery volume in the third quarter was approximately 140,000 units, a year-on-year increase of 13%, achieving revenue of approximately RMB 31.6 billion.
Notably, its profitability has improved. ZEEKR's gross profit in the third quarter reached RMB 6 billion, a year-on-year increase of 50%; the gross margin significantly improved by 5.1 percentage points from 13.9% (after restatement) in the same period last year to 19.0%. In the first nine months, ZEEKR's losses have narrowed significantly from RMB 2.375 billion in the same period last year to RMB 523 million this year, indicating that it is steadily moving towards profitability In terms of the balance sheet, the financial report shows that as of September 30, 2025, Geely Auto recorded a net current liability of approximately RMB 7.874 billion.
Changes in Accounting Standards Lead to Restatement of Previous Financial Reports
One of the most significant changes in this financial report is the alteration of the company's accounting policies. Starting from January 1, 2025, Geely Auto has changed its accounting treatment for business combinations under common control from the previous "purchase method" to the "merger accounting principle" (i.e., equity method), and has retrospectively restated past financial reports.
According to the announcement, this move aims to accurately reflect the economic substance of the group's internal restructuring, enhance the transparency of financial reporting, and align with international practices. This change directly affects the accounting treatment for the acquisition of Lynk & Co and several dealers. Since these entities are under the common control of the company's major shareholder Li Shufu both before and after the merger, the accounting treatment no longer recognizes goodwill or acquisition gains, but instead combines assets and liabilities at their original book values.
This change has led to a comprehensive restatement of the comparative financial data for 2024. For example, after restatement, the revenue for the first three quarters of 2024 was adjusted from the original RMB 167.684 billion to RMB 189.534 billion, with gross profit adjusted accordingly. Investors must rely on the restated data for year-on-year analysis to ensure comparability
