By Jiahui Huang

Geely Automobile's first-quarter net profit more than tripled, thanks to record sales and improvement in profitability, as it strives to make headway in China's increasingly competitive electric-vehicle market.

The company said Thursday that net profit more than tripled to 5.67 billion yuan, equivalent to $786.6 million. Revenue for the quarter rose to 72.50 billion yuan from 58.23 billion yuan a year earlier.

The Chinese automaker said it achieved record sales in the first quarter and saw robust growth in the new-energy business. Its total sales volume jumped 48% to 703.8 million units during the period. Sales of its Galaxy brand more than tripled, with improved profitability for the new-energy segment, Geely added.

Robust sales have led to significant scale effects and a substantial increase in overall profitability, the carmaker said.

Geely is China's second-largest EV maker and has been expanding its market share with strong product offerings.

Zeekr, a premium EV brand owned by Geely, said Thursday that its first-quarter net loss narrowed to 718 million yuan from 1.98 billion yuan. Meanwhile, its revenue rose to 22.02 billion yuan from 21.78 billion yuan.

Zeekr's vehicle margin rose to 16.5% from 13.1% a year earlier, thanks to sustained cost controls, partly offset by lower average selling prices for its cars.

Geely has reorganized some of its resources over the past year. Last week, Geely said it is considering taking Zeekr private, just one year after it was listed in the U.S.

Zeekr's potential privatization will likely support Geely's synergies with regard to research and development, supply chain and product portfolio concentration, HSBC Global Research analysts wrote in a note.

Two of Geely's brands--Zeekr and Lynk & Co--also recently merged to form Zeekr Group in order to maximize the group's resources.

Geely's Hong Kong-listed shares have risen 32% this year, outperforming the benchmark Hang Seng Index's 18% rise.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

May 15, 2025 00:51 ET (04:51 GMT)

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