Dear investors, dear friends from the media, good afternoon to you all. Welcome to the Geely Automobile 2026 interim results conference.

Now I would like to walk you through the company's financial performance and operational results for the first half of 2026. During the first half of this year, despite a challenging automotive market marked by policy adjustments, phase-out, and intensifying price competition, we have bucked this trend, guided by our One Geely full-spectrum leadership.

We have been progressively consolidating our resources and achieved historical breakthroughs in sales, revenue, and profitability. In terms of sales, we reached 1,426- 1.423 million vehicles in the first half, up by 1% year-on-year, a resilient performance against a broader industry decline of 6%.

The total sales hit a record 474,000 units in the first half, representing a year-on-year increase of about 158%. The total revenue reached about 173.6 billion RMB yuan, up by 15% year-on-year.

The core net profit attributable to the shareholders came in at 9.68 billion RMB yuan, up by 46% year-on-year, with profitability continuing to improve. Leveraging our coordinated strategies in smart technology, global expansion, premium branding, and energy diversification, we have deeply integrated our brands and created full-spectrum synergy.

The outcome is clear: revenue growth outpaced the sales growth, gross profit growth outpaced revenue growth, and core net profit growth outpaced gross profit growth. That's a healthy, sustainable trajectory.

Now let me walk you through some of the key statistics. By energy type, we gained market share in both the new energy cars and the conventional fuel vehicles, driving our overall market share to the new record high for the period.

In the conventional fuel or ICE segment, despite a 17% industry decline, our first-half market share rose to about 10.71%, up by 10% year-on-year. Our NEV market share rose to 11.59%, up by 4 percentage points, also reaching a new high for the period.

Our energy diversification strategy is clearly paying off, with both resilience and growth momentum strengthening in tandem. On the international aspect, export sales more than doubled, outpacing the industry.

H1 export volume reached 474,000, up by 158% year-on-year, far exceeding the industry average of 72%. Among these figures, NEV exports hit 277,000 units, a staggering 585% year-on-year increase.

As of July, we have posted monthly export volume exceeding 100,000 units for two consecutive months, a clear sign that our globalization strategy is accelerating across the board. In terms of premium branding, Zeekr is our spearhead brand for moving upmarket.

In the first half, it sold about 178,000 units, up by 97%, generating 55 billion RMB yuan in revenue, an 103% increase, effectively doubling its business. The sales of Zeekr models with an average transaction price above 300,000 RMB yuan skyrocketed by about 192% against a 7- 14% industry decline in that same segment.

The combined push of premium branding and globalization has driven revenue and gross profit to new heights. H1 total revenue reached 173.6 RMB yuan billion, up by 15%.

Average revenue per vehicle hit 112,000 RMB yuan up by 16% year-on-year, both all-time highs. H1 gross profit totaled 31.2 billion RMB yuan, up by 26% year-on-year.

The gross margin improved by about 10% year-on-year to about 17.9%. Benefiting from the One Geely strategy, the ongoing benefits of brand integration, channel synergy, and resource sharing continue to materialize.

Our administrative expense ratio is steadily improving while our selling expense ratios remain stable even amid rapid overseas expansion. Selling expense ratio rose to 4.7%, up by 1.4% year-on-year.

Admin expense ratio fell to 1.7%, down by 12.3% year-on-year. On R&D perspective, we are consolidating resources, improving quality and efficiency, and reinforcing our product and technology leadership.

R&D investment totaled about 9.06 RMB yuan billion, up by 8% year-on-year, maintaining a stable level to secure our technological edge. R&D as a percentage of revenue stood at about 5.2%, down by 5.5% percent year-on-year.

With our premium branding and globalization strategy continue to advance, our product mix is improving, and our earnings quality improved to a new high. Our core net profit attributable to shareholders reached 9.68 billion, up by 46% year-on-year.

Core net profit margin attributable to shareholders stood at about 5.6%, up by 27% year-on-year. Per-vehicle core net profit attributable to shareholders reached 6,806 RMB yuan, up by 45% year-on-year.

Our strong business growth has also generated ample cash flows, with cash flows remaining stable. By the end of June 2026, our cash reserves stood at 69.6 billion RMB yuan, a historical high.

The robust cash position provides a solid foundation for future development, significantly enhancing our risk resilience and growth sustainability. That concludes the first part, which is about financial statistics.

Now I come to the second part, which is about the operational highlights of our brands. Talking about Zeekr, H1 sales reached 178,000 units, up by 97% year-on-year, with Zeekr 9X delivering over 46,000 units.

Zeekr's product portfolio covers the mainstream premium segments, and it ranks among the top of the Chinese premium new energy brands. Zeekr 9X ranks number one in China's vehicle segment above 500,000 RMB yuan in H1.

Zeekr 8X ranked number one during the range of 300,000 to 500,000 mid-to-large plug-in hybrid SUV segment for two consecutive years after its launch. For Lynk & Co, H1's sales reached 144,000 units, of which NEV sales accounted for 94,000, up by 9% year-on-year, with NEV penetration rising to 65%.

Lynk & Co 07 GT exceeded 10,000 confirmed orders within 27 minutes of its launch. The 10 EMP ranked number one in China's PHEV B-segment premium sedan market across all brands.

Geely Galaxy, talking about Geely Galaxy, just three years after its launch, the cumulative sales have surpassed 2.5 million units as of the end of June. Galaxy brand H1 2026 sales reached 520,000 units, firmly placing it among the top tier of China's NEV brands.

The Geely Xingyuan ranked number one across all passenger vehicle segments, all brands in China. The Galaxy Xingyao 8 ranked number one among all plug-in hybrid B-segment sedans in China.

Geely Star China Star H1 sales reached 581,000 units, marking the 10th consecutive year as the number-one Chinese independent brand in conventional fuel and hybrid vehicle segment. Despite an overall market decline in the fuel and hybrid segment, China Star continued to lead and achieve counter-cyclical growth.

The Xingrui L ranked number two among Chinese independent brands, and the Boyue ranked number one among all brands in China's conventional segment and SUV segment across all classes. The Xingrui ranked number one among Chinese independent brands in the ICE model A-segment sedan category.

The Binrui ranked number one across all the boards among all brands in China's fuel and hybrid A0-segment SUV category. Our technological advances not only driven better financial performances, but also ensured and created greener and safer mobility experiences for society.

The i-HEV intelligent hybrid system launched in H1 redefines the next generation of hybrid technology, achieving 12% lower fuel consumption than the global benchmark. The all-new 16-in-1 intelligent E-drive delivers industry-leading combined efficiency, further reducing NEV energy consumption, marking green mobility even more efficient.

Smart technology is also enhancing safety. Geely became the first automaker in China to receive national-level certification for its driver assistance safety management system.

Our G-ASD is also the first Chinese system to pass UN driver assistance certification, brings safe, intelligent driving experiences to users in the EV and beyond. Looking ahead into the second half of this year, we will continue to leverage smart technology, premium branding, globalization, and energy diversification to push for full-year sales target completion.

Zeekr continues to move upward. Zeekr 009 Glory Edition and Zeekr 9X Glory Edition were launched in H2, expanding our premium market matrix and solidifying our position as a premium brand benchmark.

Lynk & Co broaden its scope even further. In H2, we will launch an all-new Lynk & Co 20 and an all-new Lynk & Co 900, refreshing our product lineup and technology while reinforcing Lynk & Co sporty DNA.

Geely Galaxy expands further categories and strengthens its core base. H2 will see the launch of the Galaxy Warship 700 and Galaxy TT, expanding our product portfolio with off-road and pure electric vehicles.

Geely's China Star will fully embrace i-HEV in H2, with multiple i-HEV intelligent hybrid models rolling out. We will also launch the Xingrui L Plus and all-new flagship SUV in H2, cementing our position as number one in Chinese brand in fuel and hybrid vehicles.

Talking about exports, 2026 marks a year of full acceleration in export. We are targeting key overseas markets and have raised the export target from 640,000 to 920,000 units, with the ambition of challenging the 1 million-unit overseas sales mark.

We are going to focus even further on building one 300,000-level market in ASEAN, three 200,000-level market in Pan-Europe, Eastern Europe, and Latin America and Africa, and one 10th 100,000-level market in Middle East and Asia-Pacific. On technology, Geely is building a moat for the new energy era under the core philosophy of technology leadership and technology equality.

With full-domain AI as our core strategy, we are accelerating technological iteration in H2. G-ASD 5.0 will enter mass production, delivering a more extreme and safer driver assistance experience.

G-ASD H7 will also be rolled out across more Lynk & Co and Galaxy models, accelerating the adoption of advanced driver assistance systems. We are also going to accelerate large-scale operation of robotaxis and build out our future mobility ecosystems.

On the smart cockpit front, Super EVA 2 will also receive an OTA update, achieving cockpit-driving integration and full-domain AI convergence. From assisted driving to smart cockpits, we are building an end-to-end intelligent experience to achieve industry leadership.

We are also looking ahead into the future. Full-domain AI is our core technology to face the future.

Centering on AI cloud powertrain, i-HEV intelligent hybrid, intelligent E-drive, and 900V ecosystem, AI digital chassis, quantum-level AI EE architecture chips, integrated spatial-terrestrial connectivity, and embodied intelligence, we are floating our technological breakthroughs and our commitment to achieving industry leadership in intelligent experiences. Under the One Geely strategy and through the synergistic push of smart technology, premium branding, globalization, and energy diversification, we have reached our best-ever H1 performance across core metrics, including sales, profitability, operational efficiency, and cash reserves.

The foundation for high-quality development continues to strengthen, and our growth momentum continues to build. Looking ahead into the future, we will stay committed to our strategic direction, focusing on technological innovation and user value creation, further expanding our global footprint, and accelerating our journey towards becoming the full-domain AI smart mobility leader.

That concludes my presentation. Thank you very much for your listening.

I would like to offer my gratitude to all of you for attending the Geely Auto Group 2026 H1 interim result announcement event. Thank you very much for your long-term support to Geely Auto.

We've just announced our financial results and business operation in the first half of 2026. I would like to give you an interpretation of this business performance and interim results.

I would like to offer my point of view on this report. I think, well, this interim results is in line with our expectation.

In the past couple of years, as you know that I've been putting this words again and again that in the future, there are very high chances that the results we announced would be in line with our expectation. It happened during the first half of 2026.

Now you can see that in the first half of 2026, in terms of sales revenue per unit, sales revenue, operational scale, we've reached new highs. This financial release is in line with our expectation.

My second observation is that this financial statement is a wonderful one. You all know that in the first half of 2026, the auto industry in China in the first half of 2026 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%.

It's in this context that we achieved close to 10 billion revenues attributable to shareholders, our profitability or profit margin rate is about 5.6%, way above the industry average. 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. 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. We've seen a rapid increase in the price of chips and other raw materials.

The competition is quite throat-cutting in the auto industry. Despite the fact that Geely Auto has enjoyed historic records in terms of sales revenue and business margin, a great trajectory has inevitably been impacted by this negative trend in the auto industry in China.

I would say this is a wonderful financial statement, but it's not that surprising. This is my third observation.

My fourth viewpoint is the one that I would like to share with you the most. This financial statement is a sustainable one into the future, and 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 resilience, and long-term value creation capabilities. I can very confidently tell you that after years of development within Geely, we've established the above-mentioned capabilities and abilities.

I like to slightly elaborate on these three areas. Talking about the systematic capability.

In March this year, when we released the whole-year business performance of 2025, I talked about the all-domain AI, safety benchmark, business integration, the diversification of powertrain and energy, and other relevant and important topics during that event. That is exactly these elements that constitute the systematic capabilities of Geely Auto.

It's fair to say that the achievements we've made during the first half of 2026 is not dependent on the result of a specific product or a specific segment or the result of a specific period of time. This is financial achievements we've made on the basis of full systematic capabilities.

Thanks to that systematic capabilities, we'll be able to perform even better with greater confidence in face of the challenges in the future. I'll give you two examples to sustain that systematic capabilities.

In the first half of 2026, if you take a look at our product portfolio, the greatest highlight is the transition toward intelligence. During the transition toward new energy, toward intelligence, in 2025, we've already built some sort of confidence in our new energy powertrain.

In 2025, you still might have some doubt over our intelligence capabilities. Before this event, we've organized some programs and activities, and I believe that many of you have participated into our programs and activities before this press conference.

These events and programs exposed you to our true intelligence capabilities within the Geely system. I believe that through these programs and activities and events, you might now have a very deep understanding of the level of intelligence we're able to achieve within Geely Auto.

I believe that in the domain of intelligence, Geely Auto is a leading auto company in China. As time goes by, we will be suddenly in a leadership position within the Chinese auto industry.

Talking about our systematic capability, on one hand, well, it helps to create products that is needed within China. One figures on the financial statement is that according to the Chinese Automobile Industry Association, during the first half of this year, Geely ranked number one in China in terms of terminal sales.

Thanks to our systematic capability, we've been able to achieve what we have achieved. More importantly, well, this systematic capability would support or facilitate Geely's international expansion.

You're quite interested in our export business. As financial statement shows that during the first half of 2026, Geely has done a tremendous job in terms of its exportation.

Mr. Gan, as far as my understanding is concerned, we've already hit the annual target we set for ourselves at the beginning of this year by now.

This is a wonderful result we've achieved. I just want to tell you that this is the beginning of our world expansion.

Why did I say that? Because we're still exporting limited number of product models within a very narrow price bracket.

We're going to export more models on a wider range of price bracket. In the future, we're going to export our premium products into the international market.

There are a lot of videos on the internet, one of which features a fanatic fan of Geely who air-transported four Geely Zeekr models from China to the Middle East. There is a growing demand for premium brands from Geely in the Middle East as well as in the European market.

The new energy vehicle in China has won global recognition, but most of this recognition falls on the low-end category. I would say that Zeekr, the Zeekr brand from Geely would uplift that global recognition of the new energy vehicle in China, meaning that the Chinese automakers are capable of manufacturing premium, high-end, luxury new energy vehicles.

We just release some numbers with regard to the i-HEV products. i-HEV product is probably the segment that accounts for the largest market share in the world, and Geely's product, Geely's i-HEV product, is capable of competing in the international market.

I think I give you these examples just to tell you that we've already established that kind of systematic capability within the company or the company group, which allows us to make progress in the domestic market and enable us to further expand into the international market. Secondly, I'm going to talk about strategic resilience.

Scale, profitability, growth, and sustainability, these are the most important points we focus on. We focus on the long term instead of the short-term profitability.

That means we need to have that kind of strategic resilience even if in difficult times. We can maintain high growth rate, that's true, and at the same time, we still need to maintain the operational stability within the company.

Both are important. I would also like to give you an example to substantiate that point.

We have a consensus over the development of the Chinese auto industry that international market is probably will contribute the greatest growth engine for the Chinese auto industry. We're facing a highly unstable geopolitical situation.

We need to expand into the international market, while we need to reduce the exposure of massive investment into the international markets. I think this is a common issue facing all the Chinese automakers.

On that front, it is a natural extension of what I've described as the strategic solidity of Geely Auto Group. We have also devised a strategy to collaborate even further with our global peers and counterparts.

By doing so, we can be committed to our long-term development, not only in the overseas, but also help us to withstand the possible tests and challenges from the overseas market. It is also key reflection of Geely's responsibility for the automotive market in general.

By working together to co-use or to co-share this platform, we can seek win-win situation for all partners. This is what I call how we can stick firmly to our original strategy, and that is also paving the way for our global pathway.

The reason why we will embrace such a practice is largely because we, Geely Auto, over the past two decades has been doing all the time by integrating or acquiring Volvo and working together with Renault and many other brands, we have garnered respect and trust from our global partners. The historical trust placed on our shoulders by our counterparts will help us to achieve much better result in the days to come.

While I was talking about the value creation and strategic solidity, I also talked a lot about export. We have three main advantages on export front.

I want to give you a quick summary of these strengths. Premium branding; secondly, diversification of our vehicle types; thirdly, the historical trust from our colleagues and from our peers upon Geely Auto Group.

This will help us to win even more trust and to ensure that we can achieve much bigger success in the days to come, especially in the overseas market. The third aspect I'm talking about is the long-term value creation.

The systemic capability, strategic solidity, power, in addition to the correct or the precise judgment, combine to form the very foundation for value creation in the long term. I've already explained to you a lot, especially related to the first two fronts, but talking about the third one, Geely is among the earliest players to realize that we need to embrace all-domain AI for the auto industry.

For example, the Xingrui Smart Center was introduced, and it is the first step for us to enter into a huge domain of AI. Looking ahead, full-domain AI plus smart mobility will become the future trend.

This is something that we have a very clear understanding about, and it is also something that we have already been coupling with a fully fledged system. You can also see that Geely currently has formed a fully fledged system that can adapt further to those two major trends, for example, for ECARX, for the G-ASD, Caocao Mobility, and many others.

The existence of those systems will help us to win more space for our future. This can also ensure that we can provide a solid guarantee for the creation of long-term benefit and a value for Geely Auto.

These are the three aspects to illustrate that we are fully capable on those fronts before we can tell you for sure that our financial statements will continue to make you feel quite happy about. I want to be bold enough to tell you that in the foreseeable future, you will see a much stronger Geely.

Much for my observation and my summary of 2026 H1 report. Thank you.

Today's press conference also comes with another very key aspect. Have you ever noticed that about half an hour ago, our company has made a latest announcement?

Probably you have already taken notice of this important message. Probably you want to know more about this information.

Before my explanation of this announcement, next, please take a look at a video clip recorded by Mr. Chairman Li Shufu for about 15 minutes.

Shall we now move our chairs a little bit to facilitate the watching process?

尊敬的各位股东，各位新闻界的朋友们，非常感谢大家对吉利汽车集团的信任与支持。2005年5月19日，吉利汽车股票正式在港交所上市交易，至今已经过去21个年头。这些年来，在各位股东的关心与支持下，吉利汽车股票价格从2005年5月19日的0.4元港币到2026年8月12日的18.06元港币，公司市值呢，从2005年5月19日的16亿港币到2026年8月12日的1948亿港币。每年分红从2005年的4000万港币到2025年的54亿港币。公司从资本市场上融资的金额远远少于公司分红给股东的金额。我们坚持每年分红，回报股东。我们基本上说到做到，用人格信守诺言，用能力兑现承诺。这个汽车行业是充分竞争的行业。在智能电动化转型的过程中，必须把握正确的方向、力度、速度，坚持两条腿走路，既要发展电动汽车，也要发展混合动力汽车。两个蓝色吉利行动计划正在变成现实。我们不急于求成，坚持打基础、练内功，坚持稳中求进、稳扎稳打、步步为营，坚持上下游产业链合作共赢，这个坚持全球合规本土化发展。无论国内市场还是国际市场，我们都在有序提升市场份额。我们坚持以国内市场为主体，国内、国际两个市场相互促进、共同发展。经济全球化已经走过了30多个年头，中国改革开放事业进行了40多年了。今天的世界正在发生逆全球化的历史性变局。全球经济一体化、投资贸易自由化这个时代已经结束了，新的经济全球化时代正在形成。这个过程呢，也可以把它理解成这是百年未有之大变局的形成的过程。有变化就有机会。在这个关键的历史节点，吉利汽车公司必须要抓住这个新的时代机遇，扎根中国市场，加速布局全球市场。在新的全球化转型进程中，我们不会新建产能，我们坚持与全球同行合作共赢，共享产能，共同发展。今天的吉利已经进入了新的发展高度。一个吉利战略正在发挥非常关键性的作用。吉利汽车产业必须要握紧拳头，要聚焦主业，进一步推进战略整合、战略协同，确保战略稳健能够落到实处。集中优势资源做强吉利汽车控股有限公司的核心上市平台，要打出一片新天地，赛出一场好成绩。为了更好地发挥职业人才的能力，更好地打造职业化团队，我们决定推荐安聪慧同学出任吉利汽车控股有限公司董事会主席。安聪慧同学是吉利体系内培养出来的高素质职业人才。职业人才难得啊，德才兼备、品学兼优，事业心坚定，意志力超强，是吉利汽车产业的骨干人才。他曾出任吉利汽车集团的CEO、极氪智能科技CEO，现在任浙江吉利控股集团CEO。我对安聪慧出任吉利汽车控股有限公司董事会主席后吉利汽车控股的业绩表现充满信心。我本人呢，将继续担任浙江吉利控股集团有限公司董事长，同时呢，出任吉利汽车控股有限公司终身荣誉主席，就是一个荣誉啊。我在浙江吉利控股集团旗下的其他这些职务啊，现在暂时保持不变。汽车产业呢是没有尽头的马拉松。企业传承与价值观取向决定企业的可持续发展能力。人是企业文化传承、价值观取向的核心要素。人力资源是企业的第一资源。人才战略是吉利战略的最基础性的战略。为此呢，吉利还专门成立了人才集团。今年，吉利人才集团发起了两项人才发展项目，是吉利人才战略的实战行动。其中一个是跨世代跃迁人才培养计划，另一个是跨世代实战专业能力的培养计划。这两个项目的实施，为吉利人力资源开发、经营与管理提供了实战场景。人工智能时代与三个校园组合是吉利人才战略的重要研究方向。几十年来，我们坚持多层次人才培养能力的形成与发展，尤其是基础性技师、技工人才，制造与质量管理人才，工程研发人才，设计创意人才，经营管理人才，营销与售后服务的人才，跨国服务人才，以及人工智能、航空航天、新能源等产业方向的人才培养。我们坚持尊重人、成就人、幸福人的人才培养理念，让同路人携手合作、协同发展。ESG，ESG是衡量企业的社会责任、绿色可持续发展能力、企业治理能力的三大指标，也是吉利汽车集团的自我要求、自身健康发展的内部衡量指标。这个多年来，吉利汽车集团在ESG方面的表现一直保持行业领先水平。ESG呢从环境维度、社会维度、企业治理维度对企业ESG明确提出三方面内容要求。几十年来，吉利在这三个方面所做的工作既真诚更具体。其中绿色液体能源技术的研究与开发是吉利为人类环境事业所做出的带有特色的贡献。二氧化碳的资源化利用，风光氢电存在交通运输领域的大规模的推广应用，这些都需要企业的积极参与。为此呢，吉利公司投入了大量的资金、大量的资源。虽然二十多年来我们在这方面的技术研究与商业化应用方面的探索只有投入，到目前还没有经济回报，但是今天我们已经看到了光明前景。甲醇电动的独特技术优势必将会对全球环境可持续发展产生重大正面影响。在社会维度方面，我们对照相关要求积极主动展开相关的工作。比如员工权益保护、供应链管理、产品责任与顾客权益保护、社会与公共利益等方面工作。吉利的内部啊都已制度化。吉利在非营利办学方面的工作啊也已经做了将近三十年了。我本人为了办好非营利大学也倾注了大量的心血，捐赠了大量的资金。吉利教育事业在党的教育方针指引下，在国家教育部的指导管理下，为中国高等教育改革实践与探索做出了卓有成效的贡献。我们还要继续的努力，要继续的创新。在企业治理维度方面，我们首先带头严格遵守落实，积极培养职业人才，积极打造职业化的团队，确保企业三层治理结构有效透明的运行，为内生人才健康成长，为企业文化健康发展营造良好治理氛围。元动力工程是吉利价值观体系的重要组成部分。用户至上、战略引领、元动力保障是吉利的核心价值观。如何实现顾客至上的目标，既要有正确的战略，更要有元动力保障。何谓元动力？元动力是企业的元气，是员工的心气。我们一定要让员工的心与企业在一起。人以群分，物以类聚。继续留在吉利一起拼搏的人，大家都有共同的吉利核心价值取向。我相信新一届董事会及管理层一定会传承与发扬吉利优秀的企业文化，传承与完善吉利企业制度，继续在ESG方面有着良好的表现。借此机会，衷心祝愿各位股东红运当头、心想事成，祝愿大家天天开心，明天更美好。

Now you've watched the video. Entrusted by the Board of Directors, I want to give you a brief explanations on this change of leadership.

This is a significant change in the leadership for Geely Auto. It is by no means a simple shift of the leadership.

It is strategic evolution of the entire institution of Geely Auto. After reform and open-up policies, with nearly five decades of development, most of the private companies in China are facing the installation of a second generation of leadership.

Eric Li resigned the position of the Chairman of Geely Auto, and Mr. An Conghui will serve as the new Chairman of the Board of Directors of Geely Auto.

The shift of leadership is a declarations to get rid of the sense of the family-run business to a company that is broadly managed by team, by institutions, and by systems. The company or the company group will no longer relied upon personal charisma and power.

Instead, its operation will rely on institutions and systems, which means the governance of Geely Auto will be even more transparent in the future. Its decision-making process will be more professional.

Its management will be more science-based. At the same time, as to the internal talent, this is a strong signal that the professional ceiling has been broken.

It will definitely instill the passion into each and every employee within the company group, who will, in turn, generate greater value for shareholders and the society as a whole. I think this is the strong significance of this change of leadership.

Mr. An Conghui will become the Chairman of the Board of Geely Automobile Holdings Limited.

He's currently the CEO of Zhejiang Geely Holding Group. And 175 is probably the only listed company within the Geely Group that he will serve as the Chairman of, which means we will continue to implement this Taizhou Declaration and we'll continue to follow the One Geely strategy and we will consolidate all the quality resources within Geely to make sure that they will be channeled into our listed platforms, to make sure that our listed companies will be bigger and stronger and generate the greatest value for our shareholders.

Chairman Li highly recognizes the professional capabilities of Mr. An Conghui.

He has years and years of experience in the auto industry, and he has a depth of understanding of automotive products. All this will enable him to develop the Geely Auto Holdings Limited to a new height.

This is a great move in corporate governance, and it has far-reaching significance. The other thing is that I myself will resign the CEO of Geely Auto, and Mr.

Gan will be my successor. It is also the shift of leadership and management of Geely Auto.

It is required by the era. It is required to maintain the vitality of the company.

This shift of leadership is required in order to turn this listed company into a bigger and stronger one. We need young bodies, younger minds, and future-proof wisdom, especially in the time of internet and artificial intelligence.

Mr. Gan and his peers will have a stronger understanding of the calls of the time than my generation.

His generation will have a better insight into the calls of the time and will have a better execution capability. This shift of leadership will be able to make improvement into the multi-tiered talent development systems within Geely.

It is the way to keep the competitiveness of the company. This is what I'm going to tell you that Mr.

Gan is going to be the CEO of Geely Automobile Holdings Limited. It also has a far-reaching significance.

Also, I would like to tell you that on our announcement, Mr. Li Donghui also resigned his current position.

In the past couple of years, Mr. Li Donghui has also made its outstanding contributions to our auto group.

Now currently Mr. Li is serving as the Vice Chairman of Geely Holdings Group.

He's currently undertaking many other jobs, especially in the international market. Now he's still the Executive Board Director of 0175, he will continue to be deeply involved into the operations and management of 0175.

Last but not least, I want to say a big thank-you to all our friends for your great support to me as the CEO of 0175. A big thank-you to you.

I'm no longer the CEO of 0175, but I will continue to serve as the Executive Director and Vice Chairman of the Board of Directors of 0175 to be relevantly contributable to this group. Mr.

An and Mr. Gan actually are based in Hangzhou, and myself is based in Hong Kong.

Looking ahead, I will work together with Mr. An and Mr.

Gan to better manage the affairs in Hong Kong market, especially in the capital market. Much for my explanation and announcement and explanation of some of the changes of the main leadership of our group.

I hope our future will be brighter. Now let's invite Mr.

An Conghui to give his speech.

Thank you, Mr. Gui.

Dear friends from the investment community, dear friends from the media, dear colleagues, good afternoon to you all. I want to thank Mr.

Chairman Li Shufu for the great trust on myself and on the board, so that I now will pick up as the Chairman of Geely Automobile Holdings Limited. Looking ahead, together with Mr.

Gan and Mr. Gui, we will continue to internalize responsibility, trust, and care into the real spirit of our group and translate them into real actions.

Just now, I hope that you have already seen from the video message that Geely has now reached a new level of growth. The One Geely strategy is playing its pivotal role.

Now due to the time limit, I want to walk you through some of the main thinkings behind this One Geely strategy. Just as what Mr.

Gui has mentioned, we need to deepen the implementation of the Taizhou Declaration and to make the One Geely stronger, more substantial, and more impactful. This is something that we will not compromise.

Over the past two years, guided by the Taizhou Declaration, we have continued to consolidate and sharpen our focus on our core businesses with significant progress, especially for the first half of this year. You can see it very clearly from the H1 financial statements.

The next phase, we will double down on the One Geely strategy, further optimize our business portfolio and resources allocation, enhance system-wide synergies, reduce unnecessary internal friction and duplicate spendings, and bring more strategically valuable businesses, those that have already reached its industrial scale maturity into the listed entity. We're also going to suspend the operation of those non-value-added businesses and units of the whole system.

Also we're going to integrate some of the useful business units into the group, 0175. We want to be bigger, stronger, and more impactful in the future.

This will be clearly reflected over the next step. I want to give you some examples.

For example, our Golden Brick battery business. Actually, over the past 10 or more years, now we have reached about 7G to 80G production capacity.

Next year, we are going to reach about 200G. By 2028, that's about 300G GWh.

In batteries, there will be new breakthroughs, major breakthroughs along the lines, be it reserve batteries, fuel cells, power cells, and also there would be sodium and other types of batteries. Solid-state batteries, sodium-ion batteries, and large-capacity energy storage systems will all be the reality in the future.

There will be breakthroughs to be sure enough. Also the electric drive system.

Now we have reached a new scale of production capacity by leading the world, by claiming the best-ever technologies in the world. Next step, it will be empowering our group even further.

For example, Hangzhou Jidian, which you have never heard about. This is based upon what we have done over the past 10 years, based upon the electric and electronic core spare parts and component R&D capability, we're building a strong base in Hangzhou of NEV.

In smart driving and intelligent driving, there will be some core technology production lines that have been reserved for our future growth. By domain control, regional control, we are complete with all relevant technologies needed for those purposes.

These are some nine examples to illustrate this point, not to mention we have many others at the same time. As those practices are useful or helpful for us to fulfill those strategies, we will spare no efforts by combining all our strengths to ensure to become a new reality.

Second, there will be more systematically oriented distribution by focusing more on the overseas market. We will turn the overseas market into a major growth driver for Geely, as Mr.

Gui has mentioned already in his speech. For H1 this year, our export sales in the overseas market has reached its new highs.

It has also increased by about 158% compared with the same period of last year. You can also see that we are actually aiming at selling about 1 million units per year to the overseas markets.

Our long-term goal is to ensure that about 2/3 of our sales will come from the overseas market. Alongside with steadily improving the sales volume in domestic market of China, we will further quicken our pace to expanding to the overseas market.

I've been working for Geely for over three decades. I'm a veteran employee in Geely.

I still vividly remember the first day of the founding of Geely Auto, that in the future, 2/3 of the markets of Geely will be overseas markets. Now in retrospect, we can see that how correct it is for Mr.

Chairman Li to raise that goal. I fully believe that in the future, this goal will fulfill for sure.

If 2/3 of the sales will come from the overseas market, then localized production will become the reality. We have to focus on the long-term goals.

This is something that we have been working very rigorously on all fronts ever since. Geely Holdings Group will coordinate all the resources of all brands within our group in parallel to the resources of the overseas market.

I want to emphasize that Geely Holdings Group will coordinate all the internal resources within our group for all the brands in parallel to our resources of the overseas partners or external partners to ensure that we can co-develop, co-share the purchasing capacity, and to co-use the HR competence and the supply chain in China, and also we will co-share the channels and service networks. Also I want to give you some examples to illustrate this point.

The Geely's acquisition of Volvo has ensured us quick strength, positionings in technologies and products, but also this will help us to move further into the overseas markets. The overseas factory of Volvo will also undertake the mission of manufacturing high-end and premium cars of Geely brand.

For the acquisition of Proton, this year, hopefully our project is set to exceed about 200,000 units this year. Hopefully, we will turn this center into a major hub to produce about 500,000 units of Proton cars in the Southeastern Asia market.

Also you have seen the announcement of our collaboration with Ford in Spain for the production of some Geely-branded cars in Spain. The production capacity of that Spanish factory is also about 500,000 units per year.

Also we have a Brazilian plant by working together with Renault is having the capacity of about 300,000 units per year, and our South Korea plant, as a result of our collaboration with Renault, is also adding up some capacities as well. Also there are some projects that are still going on there.

In other words, which means we didn't start our overseas strategies a year ago or two years ago, three years ago. Actually, we had overseas strategies ever since the founding of the Geely system.

The Ford plant will be put into operation in 2028, which will manufacture quite a number of models within the Geely system, and our Volvo European plants will also be put into operation in 2028, manufacturing some premium models within the Geely system. This localized manufacturing capacity deployment has taken its initial shape and is going to bear fruits in the next couple of years.

Thirdly, we'll stay committed to brand upgrading and turn our technological leadership into product leadership, reputation leadership, and value leadership. We need quality development of the Chinese auto brands, which means we must accelerate our move upmarket and toward new energy.

As a result of the export of our product and technology, Geely, as a technology-driven company, we've already formulated our own advantages. You might have recognized that Geely is turning itself into a tech-driven company.

The Chinese automobiles are not only competitive in price domain, but also in branding, in technology. We're committed to the long-term development.

We are strongly opposed to price war and involution. We want to wage wars on quality, technology, brand, service, and corporate integrity.

These are the resonating themes throughout different kinds of conferences and events. Zeekr accounts for 1/3 of the segment with the ever-selling price above half a million in China.

As a result of the international strategies for Zeekr, I believe that in the premium segment in the global market, Geely will also aim at 1/3 of the market share. I think this market share will be built upon our technological capabilities.

We made long-term investment into the R&D of technologies in the auto industries, and also we made investment in acquisition, corporate cooperation. A lot of these investments have been turned into our competitiveness not for the current market, but also for the future.

I was frequently asked why Zeekr was so popular in the premium market, why Zeekr has enjoyed a rapid rise in its branding force, why, compared with its competitors, Zeekr is taking the lead by a generation. To which I replied, without the acquisition of Volvo, without the acquisition of Lotus, we're not going to see the achievements made by Zeekr, because both Volvo and Lotus have been in operation for more than 100 years.

They have accumulated century of experience in safety, benchmarks, standards, lightweight technologies, and all kinds of automobile-related technologies. Geely has also made decades of investment into the automobile-related technologies.

That's why we made significant breakthroughs and improvement in terms of our safety, product safety, lightweight technologies, engines, chassis. Without Volvo, without Lotus, without our own long-term investment into this domain, it will be impossible for us to reach the current status.

Fourthly, we need to deepen modern corporate governance to make our organization more dynamic, efficient, and sustainable. The shift of leadership of Geely Auto is a plan step in Geely's journey toward modern corporate governance.

Its purpose is to further enhance our competitiveness and achieve healthier, more sustainable growth. For this board and management team, our top priority is to take the baton and pass it on well.

What are we passing on? Not just a position, but the company's core values, management systems, and governance framework.

Company's foundation lies in its people and its core competitiveness in its talent. Going forward, we will continue to build a professional workforce and ensure transparent, effective operation of our three-tier governance structure.

We will keep strengthening the prime vitality, upholding the principles of shared pressure, shared responsibilities, shared value creation, and shared rewards. We will give the stage to those who deliver results and ensure that every dedicated contributor grows together with the company.

I believe that under the board's guidance and management team's execution, Geely Auto will continue to deliver steady growth and create long-term value for our shareholders and users. Thank you very much.

Mr. Gan, now the floor is yours.

Dear investors, media friends, good afternoon. I would like to thank you very much for your long-term care and support to Geely Auto.

Our Chairman and President An and Mr. Gui have just laid out the group's strategic directions for the next phase.

For Geely Auto Group, our core mission is to translate corporate values into action, turn strategy into results, and deliver high-value products and services to our users while giving back to our customers with solid, tangible operating performance. Despite a challenging industry environment, Geely delivered a remarkably strong first-half performance.

Sales, revenue, and profit all hit the record high. Our revenue outgrew our sales, and our profit outgrew our revenue.

We're seeing a high-quality growth within the Geely Auto company. In the second half, under the One Geely strategic framework, we're seeing stronger resource synergies across the group, demonstrating robust operational resilience, upward momentum.

We will focus on three key pillars: first, the domestic market, overseas expansion, and our AI transformation to ensure a solid start for our 2030 strategy. In the domestic market and in the premium segment, we will drive four brands, namely Zeekr, Lynk & Co, Geely Galaxy, and China Star, to move upward together, leading with high-value flagship products to unlock greater growth.

Secondly, in terms of international expansion, we're going to duplicate our high-quality growth model into our international business. In the spirit of openness and a win-win, we're going to deepen our localized manufacturing strategy to improve our international competitiveness.

Thirdly, in terms of AI ecosystem, we will accelerate the transition towards a leader of full-domain AI mobility provider. We will continue to lead the intelligent transformation of auto industry.

Based on our accumulation of the technologies in the all-domain AI technologies, we also upgraded traditional technologies during the first half of this. We announced the launch of i-HEV and digital chassis as well as 16-in-1 electric drive.

Behind each and every leading technology, we're seeing the vertical capabilities that are empowered by artificial intelligence. In terms of energy supplement and other technologies, we make full use of the AI technology.

We're going to get rid of the safety issues in terms of charging of the batteries, and we also trying to get rid of the problem of the battery decay. Ladies and gentlemen, we will be committed to high-quality development.

We'll continue to focus on value creation for customers. We'll be committed to the production of high-quality products, better customer experience, and better business performance for our customers and shareholders, and to facilitate the high-quality and sustainable development of the auto industry in China.

Thank you very much.

I've just given you a brief introduction of Geely's strategies. Toward the end of this year, we're going to hold an event during which a more detailed explanation of our 2030 strategies will be provided.

Thank you.

Thank you. Congratulations to Mr.

An and thanks Mr. Gui for your contribution.

I believe that new leadership, as Mr. Gui said, will deliver a record high.

My name is Shenning Yi from Eastern Fortune. I have two questions.

The first one is in terms of the export of 9X, Zeekr 9X, we started export to Australia, to Middle East, to Malaysia. Pre-sale have started of this Zeekr 9X.

I'm just curious about this feedback of this pre-launch of Zeekr 9X, and what is your forecast on your export volume of 8X and 9X, Zeekr 8X and 9X? Of course, they also enjoyed good sales in the Chinese market.

Totally, if you combine domestic market with international market, what will be a stable sales forecast of 8X and 9X? This is the first question.

Talking about globalization and premium branding, I want to say a few words about our international business, as this is one of the focus of our investors and media friends. Actually, the overseas market is an epitome of the Chinese auto industry.

In the H1, industrial average growth rate is about 72%. For H1 for Geely, we have achieved about 174,000 units, up by about 158%.

NEV sales have sold about 277,000 units, up by 585% year-on-year. This is an unprecedented figure.

There are three key features about sales and performance of Geely. The growth speed is number one among all the mainstream automakers in China.

Secondly, NEV year-on-year growth rate is number one in our industry. Thirdly, for premium brands in China, we are also ranking number one.

These are the three key features of our Geely exports this year, H1 this year. You can see that the international business is quite balanced across all the regions, and some regions have seen much more rapid growth.

For example, Latin America, up by about 298%, nearly 300%. For Europe, nearly 280% growth.

In ASEAN countries, over 120% growth rate is registered. In Eastern and Central Asia, almost over 100% increase.

These are what we call regional growth across the board. Different regions may have different performance levels, just as what Mr.

Dai has mentioned in his presentation, we want to ensure one special region for 300,000 units and two unit two centers for 200,000 scales, and three centers for 100,000 unit scales. Secondly, internationalization has what Mr.

An has mentioned, about 2/3 of the sales will come from overseas market. I joined Geely upon my graduation.

I remember very clearly seeing day one of my joining of the Geely, we want to see Geely cars in China and across the whole world. We want to sell our cars to the overseas markets.

This is always a very important bedrock underpinning our strategy for the overseas expansion. It is benefiting immensely from the NEV footprint expansion of China.

Secondly, because of our strategy. In the next two or three years, we have also devised a plan, which is a workable plan in the overseas market.

We have a 1-2-3-4-5-6 strategy for international orientation. Talking about one, one meaning one overseas system for Geely.

At the back end and the middle end, there is only one system. Zeekr, Lynk & Co, and Geely are the three main brands.

One is on the high tech, the second one is sporty DNA, the third brand is the mainstream mass public orientation. These are the three clear positionings of the brands to win our market shares.

Two, 3-4-5-6 meaning we want to build a center in Europe selling about 600,000 units, 500,000 units in ASEAN countries, 400,000 units in Middle East, and 300,000 in Eastern Europe, 200,000 units in Central Asia. This is called 2-3- 2-3-4-5-6.

If you put all these figures together, that makes the total 2 million sets.

Secondly, talking about premium branding for export purposes. This is also very prominent feature of our exports.

For Zeekr, you can see that it is much more well-known than ever in the past. Not long ago, the 8X and 9X have been well-certified abroad, and something are still going on there.

There has been a very good, positive feedback from the overseas customers. Some have approached the operators or some of the channels to add an extra price to buy an 9X or 8X car.

It is sufficient enough to tell us that we have ample market demand in those areas. Almost all the markets speak very highly of the quality of 8X or 9X cars.

For Zeekr, our future is very clear. We want to win the future market share to define luxury and a premiumness with technologies.

Our gross margin is also quite fast, over 200% increase. This is also something quite phenomenal, but we think that in the future, our Zeekr products are mainly concentrated on 7X and 007.

These products have been well-received in the market. Secondly, we're going to quicken our steps for the expansion and rolling out of 8X, 9X, 009, and we are going to do more for the market expansion and market launch since Q3 this year.

For 8X, it will also start its rollout in Latin America, Europe since Q4 this year. Of course, our 009 and 009 Glory will also have its European edition for the latter half of this year.

The export for H1 this year is already over 4.2 million sets. Oh, sorry, it's 420- 42,000 units.

That's all for my answer.

This question is for Mr. Gan about the ICE cars or fuel cars.

We know that China Star series have seen rapid growth, I'm asking about the future of China Star series. What's your take on the future market in China for ICE?

Would there be a shift to PHEV or i-HEV?

Thank you very much. Talking about the China Star cars, the future plans, I can see that for H1 2026, it tells us very clearly that the total sales volume is about 8.29 units drop by about 24.3%, especially for ICE cars, it dropped by about over 30%, if not 31.9% drop.

That means that there has been a major shift to NEV cars from ICE models. If you take a look at the global picture, the absolute selling volume of ICE cars is still quite huge.

That's about 18 million cars. In China, it sold about 2 20 million cars.

In America, that sell about 15 to 20,000 car 20 million cars, and for the rest of the region about 40 million cars. Currently, the penetration rate is about a little bit more than 10% in China.

That means there has been huge room for ICE models in the future. Talking about the future of China Star series in China, the H1 sales is about dropping by about 5.7%.

That's much slimmer than that of the drop margin of the whole industry. Our market share increased from 8.7% last year to about 10.4% this year in China.

The market share of China Star series is increasing rapidly. That's largely because we benefit a lot from the technology roadmap and our product portfolio.

In the future, there will be two directions for the growth of ICE models. Is more HEV; secondly, we are going to do more smart screening.

On the April the 13th, we have launched the latest edition of i-HEV technology. This i-HEV is totally different from that of the previous generation of system.

I can tell you very clearly that i-HEV technology, through AI technology of Geely empowerment, our i-HEV technologies have been demonstrating much greater and better performances of all indicators, much better than that of those flagship models around the world. Why?

Because this is the key feature of the new generation of i-HEV technologies. Traditionally, we add a battery and some torque based upon the previous ICE model, but now we are purely based upon the smart platform with the high capacity of batteries up to about 60 C scale with the high-power electric drive to about 230 power.

The thermal efficiency is up to about 48.41%, and energy conservation, performance, safety, reliability are all the key indicators that we see rapid growth and improvement. That's not ordinary or comprehensive growth, but leapfrogging development on all fronts, all these above-mentioned indicators.

The high-performance batteries, high performance and efficiency electric drives ensured that we can really outperform many of the car models from Japan and some other countries. This is a major breakthrough in this area.

This is a point number one. Why we can achieve such a good result, because while we're doing some R&D, we are really changing the fundamental structure or the architecture behind the what you have seen, for example, how to feel the humidity, the temperature, the altitude of the things around the car, how to ensure that we can basically guarantee the high-efficiency operation of electric motors and engines.

At the same time, the high-efficiency electric drive systems can ensure that there have been comprehensive improvements of all the main indicators on all fronts. This 10- this 0-100 acceleration is about 1 second better than that of the Japanese cars.

This is a really tangible breakthrough. Much for the technology breakthrough.

For product distribution, in the future we're not going to develop a traditional ICE models. All the traditional ICE models will have to be shifting towards i-HEV models.

All the models in the future will be i-HEV powered. This is what I call the future direction based upon the decision made by the leadership.

Of course, for H2 this year, there will be a few i-HEV models that will be launched to the market. For example, the all-new Xingyuan Plus and the Xingrui Plus and Boyue L, these are all the i-HEV models.

I'm sure that with i-HEV technologies as a backbone, there will be a bright future for the better sales volumes of China Stars. Also we're going to launch all this full spectrum of i-HEV portfolio to the international market.

Thank you.

I have a question for Mr. An Conghui.

Chairman Li Shufu during his video speech that Geely will no longer build production capacity through new production capacity and Mr. An also introduced your global deployment of manufacturing capacity.

I think the sharing of production capacity is probably an important model for your international expansion for Geely. At Geely Holding level, you need to coordinate different resources.

What are the advantages and difficult points in coordinating all these production capacities? Thank you.

I think I've already released the information to cover your question, but I'll elaborate a little bit. I would say there is an surplus of production capacity all over the world.

There is a lot of saying about overcapacity in the automobile industry in China, but I would like to tell you that in North America, in Europe, and in other regions of the world, there are also overcapacities. For Geely, 2/3 of our sales revenue generated in the international market, which means we have to do a very good job in localized manufacturing.

I just mentioned a couple of words related to localized manufacturing: high quality, high speed, and low risk. We need to make full use of our market advantages in European markets, and we need to collaborate with our partners outside the Geely system.

On one hand, we need to make very good use of production capacity. We need to make very good use of localized human resources.

At the same time, we also need to make very good use of the supply chain systems of our business partners. Furthermore, distribution channels as well as service networks, a lot of similar natures.

That's the way we can achieve high quality, high speed, and low risk expansion. Risk control is of paramount importance, of course.

For a year or so in coordinating between Geely Holding companies and Geely Automobile Holding Limited so that we can support each other and achieve a synergistic competitiveness in the market. It's also the international market for Geely.

I believe this strategy is slightly different from the international strategies of other automakers.

Thank you.

I'm from GF Security. My name is Junhui Feitong.

I have two questions. The first question is to Mr.

Dai. Can you help us to understand the reasons behind the gross margin increase?

Looking ahead to Q3, given the price markup of the storage systems as well as the storage chips, would you remain the same forecast of your gross margin increase? As to the pure electric vehicles, the question is for Mr.

Gan. What is your observations on the future development of the pure electric vehicles, and what is Geely's strategies in rolling out pure electric models?

For Geely, I think your market share of pure electric vehicles is under pressure. After April this year, the pure electric vehicle market in China is expanding steadily.

What is your future strategies for pure electric vehicles?

Thank you, Mr. Tong, for your question.

The gross margin is 17.9% during the first half of this year. It's about 1.5 percentage point increase compared to the 16.2% of gross margin during the first half of last year.

As Mr. Gui has said that the industrial average gross margin is 1.5%, while our gross margin is 5.4%, it was quite remarkable.

As to Q2, our gross margin is 18.4%, even higher than the 17.5% of the gross margin in the first quarter of this year. Why this increase?

There are two drivers. The premium development of our brand.

In the first quarter, the Zeekr witnessed 77,000 units of sales, and in Q2, we sold 100,000 Zeekr models. That has increased about close to 30,000 units that helps to increase the gross margin because the gross margin for Zeekr is around 20%.

The second driver behind this increase of the gross margin is the global strategy. In Q1, we export close to a little more than 200,000 units.

In Q2, we export about 270,000 units to international market. I've told you that the gross margin of exports about 10 percentage 10 percentage point higher than the gross margin of our car sales in the domestic market.

These changes support the overall gross margin increase in Q2. Looking ahead into Q3, as a result of the price increase of commodities as well as the price increase in chips, well, actually in Q1, we faced some price pressures from the price increase of commodities.

Yes, we forecast price increase in commodities. Toward the end of 2025, we increased our storage of these commodities.

In Q2 this year, we have fixed the price as well as the quantity with our suppliers for the whole year, and we also did some hedgings in the futures market. In Q3 and Q4, we've made some preparations to the price volatility of the commodity.

In Q3, we're expecting an increase in the export. I think the gross margin in Q3 will not be lower than that of Q2.

As to your second question. Second question is related to the trajectory of pure electric vehicle.

In the first half of this year, the overall auto industry decreased by 30%, and even for hybrid engine, the market size decreased by 28%, but after April, we're seeing an increase in the sales of pure electric vehicles in China, which means there is still a huge demand for pure electric vehicles for a couple of reasons. High voltage; secondly, fast charging; thirdly, large battery capacity; and fourthly, high level of intelligence.

These are the four features in the pure electric vehicle segment. It takes time to develop a new generation of models.

This year, we will gradually launch the high-voltage model of Zeekr, Lynk & Co, and Galaxy TT, which will be launched soon, will be a pure electric vehicle. The debut of Galaxy TT was held on July the 21st, and we received a confirmed order of 919.

Right now, the order book has reached 22,000. Definitely this high-voltage technology can, in a way, abate the range anxiety.

Galaxy TT will launch during the second half of this year, as I told you. Q01 will also be launched as a high-voltage product.

For Lynk & Co Z20, which is also a pure electric vehicles, will be launched pretty soon. Zeekr 001 and 009 Glory Edition will also be launched into the market as pure electric vehicles.

In the second half of this year, no matter whether it's pure electric vehicle or hyper electric hybrid vehicles, we're going to see a rollout of new models under these categories.

Thank you.

Oh, thank you very much for sharing. I'm a journalist from Bloomberg.

I have two questions. The first question is related to your cooperation with Ford in Spain.

Ford has a full lineup of new energy models. Are they going to use your technologies?

Can you share with us, is Ford going to use some of the technologies from Geely in the development of new energy vehicles? This is the first time that an American company co-developed a model with a Chinese company, not for Chinese market, but for international market.

The second question is the payables. You just talked about the volatility in raw materials and commodities, and I noticed that in your financial report, the amount payable increased by 100% compared with the same period of last year.

I just wonder what is the reason of this rapid increase in the amount payable. Can you give us a forecast on the annual increase of this amount payable?

Thank you.

I want to say a few words about the capacity utilization, how to make a better use of this capacity and to ensure win-win for all partners. For Geely, on one hand, we need to control the risk.

As investors normally will say, we have light asset, but we have to well control the risk or bring the risk well under control. We want to ensure win-win for all parties.

You have just referred to mainly the product aspect. For Ford collaboration, our Galaxy, our GEA architecture is the main structure.

This is the fundamental or underlying structure, because on the basic structure, we need to develop further the products that will cater to the needs of different brands. We have to be very clear about this point between the brands.

Secondly, our products will not enter the American market. The localized production in Europe will be sold locally.

Those European produced products will not be sold to the American market. Based upon the basic architecture, we need to better make a better use of the capacity, including our supply chain system.

We have to ensure localization for the production. For EU, there will be the so-called law on market competition in order to govern the practice of companies to compete with each other in the same market.

There will be some regulatory requirements for those companies involved in those markets. In the future, over the local supply chain integration, there will be some new practices for Geely.

On one hand, we need to quicken our steps to form the new structure. On the second hand, we need to form the scale of economy, and the scale of economy comes with the word cost as well.

Don't get me wrong. The products produced in Europe will only be sold in Europe, not to other parts of the world.

I want to add a few words to the first question. This is the question that is about the main thinking about our global strategy.

We have to co-share the capacity on global scale. We can use the most economic lever to give full play to the full strength of our system.

Secondly, we are going to concentrate more resources for international perspective, meaning 2/3 of the markets will come from overseas, not to mention the strategy the strategy that I've mentioned about, 1-2-3-4-5-6 strategy. How to stay focused?

We need to continue to deepen the localization strategy. We need to continue to stick to the policy that products need to go international, the supply chain will have to become local, and our brand our brands and our technologies will have to go move upward even further.

Of course, another thing which is equally important, not only only relevant to China, but also to other parts of the world, which is about after-sales service. We need to do a better job at after-sales services so that we will become a flagship company in the world.

The after-sales will be the watershed industry between whether or not we can really achieve due success in due course.

Maybe we have to answer the second question about AP or accounts payable. Probably you didn't have much time to take a look at the financial statements.

For AP, 2025 year-end is about 81 billion according to the Hong Kong accounting rules. By June the 30th, 2026 is about 84 billion, only about 3 billion increase, not doubling, not double increase, only increased by 3 billion.

This is a correction. Secondly, after the launch of the anti-fierce competition policies of the state, we have quicken our steps to pay all the arrears or the accounts payables.

In the past, about 45 days, 60 days, 90 days of account receivable to recover the money, and now we have already changed the rules. For all those 60-day above scenarios, we have already shortened the period well below the scale of a 60 days.

Secondly, there's a different scale for year-end last year and also year mid-end mid-year of this year. For the small and medium-sized enterprises, the scale has been reduced to about 30 days or even lower lowered to pay on-site practice.

For the results, also have some statistics. For H1 of 2025, the turnover rate is about 117 115 days.

For H2 of for H1 of 2026, this period has been reduced to about 103 days. It is optimized nearly half a month.

If you take a look at the Q2 of 2026, the turnover rate or days is being reduced to about 96 days. For Q3 and Q4, with more policies going out and with things getting even better, there will be much shorter duration for the turnover rate days of APs.

I want to first of all thank our friend from online. As you have mentioned, that question is quite similar to the question raised by Guangdong Development Bank Guangdong Development Securities, why the pure electric battery is having its market because of the ultrafast charging devices or batteries, especially with the rapid increase of the market there.

The energy replenishment is critical to the users. Many customers also have the same idea that for NEV cars, whether or not it is convenient is largely dependent upon convenience, immediacy of energy storage, and discharging efficiency.

The convenience means whether or not you have a well-distributed outlets for the service of the NEV cars. We are thinking about the one issue: how to solve the problem of charging life cycle and charging speed or ultrafast charging facilities and efficiencies.

We are very clear about some of the issues there, because when the temperature goes above 45 degrees or 50 degrees centigrade, when 10 degrees up, then the batteries will decrease its efficiency by about 100% or will quicken the speed of its phasing out, meaning originally the life cycle or lifetime for the battery is about 10 years, but if the temperature goes too high, maybe the life of the batteries will be reduced by half to about 5 years only. Secondly, super or ultra-high speed or fast charging will also generate a series of risks.

Quick charging or fast charging, if I may use a metaphor, just in case of smoking. Smoking is bad for health, but that might not be so clearly seen on first sight.

How to solve the problem? Our R&D staff, we have to consider as to how to ensure we can have a fast charging, but also at the same time safe fast charging.

With the four or five years of efforts, we have made full use of AI capacities to provide a full chain quick charging devices and competencies. That's because about five years ago in 2021, we have set up energy replenishment companies of Haohan, and we're the first to China to launch our special technologies, and we have been maintaining our leading edge in energy conservation.

In 2021, we're the first to launch the ultrafast charging post, and the power is about 360 kilowatts. By that technology, we have reduced the charging time from six, seven hours to several minutes.

Later on, charging time has also been reduced from 30 second 30 minutes to 11.5 minutes. In April 2025, we have launched about 1,500 kilowatt mass production gigawatt level device.

The power is up to about 1,230 kilowatts, meaning the charging time has been reduced to about 4 minutes 22 seconds for the battery to be charged by 10 to 70%, and you only have to spend about 8 minutes or more to ensure to have your batteries fully charged. Some core technologies have also been developed ever since then, including some temperature control, AI smart technologies, charging technologies.

The fifth generation of charging devices and technologies came out based upon the AI big models and super gigawatt technologies to maintain safety and reliability at the same time. These technologies will be made available before the end of Q3 this year.

Stay tuned. I want to give you a few quick glimpse of the technologies.

Through some temperature smart control technologies, there will to be overheating of the system, because otherwise there would be a full-chain overheating of the temperatures of the batteries. We will strictly control the temperature within the national certified 65 degrees centigrade.

Secondly, the AI temperature control technologies use the vehicle, post, cloud, multipoint testings coupling to make calculation using AI technologies. The millisecond change detection is made available.

Through AI-centered technologies, we can ensure inspection, maintenance, and charging at the same time, all-in-one strategy is made available to ensure safety and reliability. Secondly, charging time and charging safety will be controlled mainly by the users, meaning the users will become smarter in using the energy replenishment technologies.

Of course, for more details, just to stay tuned until the end of Q3 for the press conference for the official announcement of the technologies. Thank you.

Thank you, Mr. Chairman.

My name's Chao Yu from Wantian. The question is related to One Geely strategy and your product portfolio.

If you take a look at your financial report, we can see that this One Geely strategy is made the significant changes to the back-end office or back-end operating systems. Mr.

Gui also mentioned that there is still great room for improvement on your financial performance. Let's just wonder whether you're going to enable greater changes at your front desk level.

Right now, you can launch a lot of models, but feel of these models will be remembered and recognized by the customers. Also, we can see there was some sort of conflict between your internal models.

There's 9X for Lynk & Co, Zeekr for 9X models. Zeekr is 009X, Lynk & Co, or for Galaxy, they have launched similar models.

I just wonder how to differentiate these models under different sub-brands. Ever since 2019, there is a significant decline in the combustion engine vehicles.

I just wonder, in implementing this One Geely strategy, are you going to streamline your product portfolio?

Thank you very much for your question. I'm going to give you a couple of numbers.

For Geely brand, including Galaxy and China Star and Lynk & Co, for Galaxy, it declined by 5% during the first half of this year. For Lynk & Co, it declined 6%.

For China Star, it declined 5%. For Zeekr, it increased 97%, 97%.

The overall increase of sales revenue is 1%. The national average is minus 6%.

Starting from 2024, when we announced the Taizhou Declaration, Geely is going back to the One Geely strategy. Through consolidation and integration of resources, we're going to build a big back-office platforms, big mid-office platforms, and reduce and eliminate duplicated investment, streamline the organization, streamline the functions, cut off all the redundant ones.

Through institutional change, we consolidate our procurement system, we consolidate our R&D system, and also we established an integrated sales company for Geely during the first half of this year. Since we came back to the One Geely strategy, we've made some achievements.

I think you can tell these achievements from our financial statement. For example, the administrative spending, the ratio decreased from 1.9% to 1.7%, there is a 12 percentage point drop.

As to selling spending in China, we're still making substantial investment in China, but in international market, the spending remains stable. For R&D, the spending ratio dropped from 5.5% to 5.2%.

When we are doing the product planning for the future products, starting from last year till this year in Zeekr, Lynk & Co, Galaxy, and China Star, there is a overlapping models, we just removed them from our product plan. Talking about the product, the number of models reduced 20%.

Through this One Geely strategy, there's more synergistic coordinations within the group, within the company, and we're seeing a more coordinated development among different brands. As to how to develop killer products in the future, killer models in the future, I believe that this and the coming years is a critical period.

New models will be launched during the second half of this year. For Galaxy, it will continue to focus on premium, mainstream products.

For Lynk & Co, it will continue to focus on trendy and individualized products. For Lynk & Co, we need to broaden its product portfolio, but how?

Will be more sporty, will be more dynamic. I think this is the direction for the future of Lynk & Co.

As to Zeekr, it will become a premium tech-driven brand. I think there is a clear distinctions between different brands.

For Galaxy TT, our Warship 700, new technologies will be applied to these models. Far, there is a very high level of market recognitions of the two models I've just mentioned.

I believe that they will continue to enjoy high visibility in the market in the second half of this year. As to Lynk & Co Z20, I believe it will become a killer product.

Thank you.

That's a very good question. Actually, it captures the essence of the problems we're facing.

There is a lack of blockbuster product or model within the Geely system. The product plan or the product development plan was formulated years and years ago.

We are revisiting these plans, and it will take some time to complete the review of these plans. During the first half of this year, actually we enjoyed a very good gross margin.

We enjoyed good per capita or per unit sales, and we enjoy good profitability. We are still looking for problems.

Behind this beautiful numbers, we found that Zeekr is a prime contributor. It contributed to the increased gross margin and per unit sales revenue.

Also Galaxy is another contributor. I think there is still some lack of brand force in a mainstream market.

We've taken notice of that issue. We still need some strong mid-level product.

In the future, we're going to do a better job in product or model planning, technology planning, and there is more to do in these areas. Once we get this strong mid-level blockbuster product, I believe we're going to see significant increase in gross margin, in profitability, in per unit revenue.

Anyway, we're confident about the future. Thank you.

We're behind the schedule anyway. We're going to launch some roadshows in the next couple of days.

We definitely welcome your participation. If you have any further questions related to the development of the company, we'll be very happy to receive your company.

Thank you once again.