Letter from the Chairman

Eric Li (Li Shufu), Chairman of Zhejiang Geely Holding Group

Realizing benefits from growing synergies, smart electrification, and increasing sustainability

Dear colleagues and partners:

On behalf of the Board at Geely Holding Group, I would like to wish a very happy new year to all those who have contributed to the success of our brands and our wider business portfolio in 2023. In particular, I wish to thank our employees around the world for their hard work and commitment to the Group, as well as our suppliers, business partners and dealers.

We have made significant progress this year as our unique portfolio of automotive, mobility and technology brands adapt to growing demand for high-quality, innovative products and services. I am particularly proud of our growing presence in the electric vehicle market, which will exceed one third of total Group sales in 2023. Newly launched models including the Geely Galaxy range, the Volvo EX30 and EM90, Zeekr’s 007, Polestar 3 and 4 and Lotus Emeya are testament to our innovation and ambition in EVs.

Growing demand for EVs is one part of a wider industry transformation, which is changing our competitive landscape. I am confident that Geely and its portfolio brands will flourish as the market adjusts to the pace of change, which may not be the case for some our weaker rivals.

Our determination to be among the industry winners was symbolized this year by Geely’s role as the official mobility partner of the 19th Asian Games, which were held in our home city of Hangzhou. This was an opportunity for us to showcase next generation vehicles with autonomous drive technologies as well as innovations such as low-orbit satellite navigation and even a zero-carbon green methanol torch. The major event saw Geely provide more than 2,000 smart premium vehicles, the largest service fleet for the Hangzhou Games, the first “carbon neutral” major sporting event in history.

The vehicles on display at the Games symbolized our reputation for product quality, sustainable performance and technology solutions that customers want – and that society needs.

As we deliver on that mission, we remain committed to realizing valuable synergies across the portfolio whilst continuing to preserve the strategic autonomy of our brands. This approach enables management to focus on the goals of each company, supported by the economies of scale and value-creation that flows from increased collaboration.

The past year has also reinforced the shared benefits of our international reach with a unique footprint spanning China, Sweden, the UK, Germany, North America, and ASEAN region. This has enabled us to realize growth opportunities in key markets across the globe.

In the year ahead, we will keep creating synergies through the sharing of industry expertise and best-in-class manufacturing capability, industrial excellence, shared mobility technologies and new ways of customer engagement.

This expertise includes harnessing the skills embedded in every part of our portfolio. These skills are a testament to the quality of our hard-working colleagues around the world, from R&D to design to software, from assembly lines to sales and marketing. Our people are our greatest asset, and I celebrate you all.

Over the past year, we’ve also seen how Geely Holding can draw strength from its international reach. Our presence in markets across the globe enables us to adapt with agility to changing customer demand, supplier innovation, new partnership opportunities and increasing connectivity. Examples included the signing, in October, of our Master Collaboration Agreement with DRB-HICOM Berhad, which will see Geely contribute to the development of Malaysia’s Automotive Hi-Tech Valley, reflecting our deepening commitment to the exciting ASEAN market. This spirit of collaborative partnership was also reflected by our deepening partnership with Renault of France, creating a global powertrain joint venture to supply advanced, low-emission internal combustion engines to our respective brands and the wider industry.

And our international profile was further reinforced in November when Geely received a license from IATF, a global group of automakers and National Industry Associations formed to improve industry quality standards. to represent China’s automotive industry in formulating such vehicle standards.

Alongside our role in promoting vehicle standards, we will continue to invest in the highest standards of R&D and next-generation technologies. This will support the innovation that customers expect from Geely, and will reinforce the competitive advantages of different brands in the portfolio.

We operate in a market where automotive and mobility technology companies are racing to become more sustainable and lower our impact on the environment whilst achieving profitably. The rate of progress varies from market to market, and the transition is creating challenges in supply chains, in regulations and in meeting customer demands.

I’m pleased to say that in 2024, Geely Holding is well-positioned to respond to these trends with its global grouping of automakers, tech companies and communications entities that are supported with Group expertise and capital to deliver their strategies and goals.

In the year ahead, we will continue to ensure we put technological development and manufacturing capability at the forefront. We should take confidence from the journey that has brought us to this point – as a supporter and enabler of a diverse portfolio of global mobility and technology assets.

Together, these assets and our skilled colleagues at every brand are driving us towards our goal of becoming a sustainable leader in the automotive and mobility industry in 2024 and beyond.

I wish you all a warm and Happy New Year.

Eric Li (Li Shufu), Chairman of Geely Holding Group.

Geely Holding Group Chairman Eric Li (Li Shufu) 2024 New Year Message, published 29th December 2023.