Moody's confirms Geely Auto's family rating at "Ba1" with outlook upgraded to positive

Rating agency Moody's stated that it has confirmed Geely Auto's (00175.HK) corporate family rating at "Ba1" and upgraded its rating outlook from "stable" to "positive" to reflect Geely Auto's robust performance last year, the expectation of strong sales momentum continuing into this year, and the belief that the company's operational scale will further expand, with room for profit margin improvement. With policy support from authorities, market share is expected to increase.

Moody's expects Geely Auto to maintain its prudent financial policies, continuously improve cost efficiency, and sustain low leverage levels and very good liquidity while expanding its business. The agency forecasts that Geely's total sales will grow by 39% year-on-year to approximately 3 million vehicles by 2025, driving annual revenue to reach RMB 330 billion. This year's sales growth is expected to reach high single-digit percentages, outperforming industry performance, primarily driven by anticipated increases in export sales and ongoing support from the launch of new energy models in the domestic market