Billionaire Geely Auto head Li Shufu steps down as profit slips

Chinese automotive magnate Li Shufu has resigned as chairman of Geely Auto, citing the company’s evolving growth strategy. Just days after Geely unveiled record first-half earnings, Li's decision initiates a new chapter for the nation's second-largest car manufacturer. Andy An Conghui, a senior executive, assumes interim leadership upon Li's departure.

Li emphasized the importance of nurturing professional talent and fostering a positive corporate culture during his tenure. Having previously announced a succession plan, Li retains his position as chairman of Zhejiang Geely Holding Group, the parent company overseeing Geely Auto, Volvo Cars, and a stake in Mercedes-Benz. Former head of Geely Auto's automotive development and sales, Jerry Gan Jiayue, will helm the company as CEO, replacing Gui Shengyue.

Despite a 2% drop in net profit to 9.1 billion yuan, revenue surged 15% year-on-year to 173.6 billion yuan, marking an all-time high. Vehicle deliveries totaled 1.42 million units, a 1% increase year-on-year, with exports skyrocketing 158% to 474,228 units. Dai Yong, Geely Auto's CFO, cautioned against price wars in the industry, arguing they could prove detrimental to most companies already grappling with profitability.

Geely Auto, which builds electric and petrol vehicles under brands like Zeekr, Lynk, and Galaxy, ranks second in China's EV market, trailing only BYD. The company aims to sell 920,000 units abroad by 2026, more than doubling its sales from the previous year. Despite the recent profit decline, Dai stressed the importance of coexistence with competitors globally, urging Geely to avoid price competition and maintain a healthy industry environment.