Li Shufu sold his car to Dong Mingzhu. Can Dong Mingzhu sell chips to Li Shufu?

Ask AI · How Will Gree and Geely’s Partnership Affect China’s Manufacturing?

On March 18, Geely welcomed an important customer. Gree Electric Appliances’ Chairman Dong Mingzhu, at Geely Holding Group’s Beijing representative office, formally handed over a Zeekr 009 Guanghui. Geely Holding Group Chairman Li Shufu personally stepped out to deliver the car, and the lineup felt top-tier.

Li Shufu said that Dong Mingzhu’s choice of a Geely vehicle was a sign of their trust. Dong Mingzhu replied that it was Geely’s products that made her feel at ease, and she revealed that many entrepreneur friends asked her to help purchase a Zeekr 009.

On the same day Dong Mingzhu bought the Zeekr 009 Guanghui, Geely Auto released its 2025 annual report. In 2025, Geely’s revenue was RMB 345.2 billion, up 25% year over year, reaching a record high. Core attributable net profit was RMB 14.41 billion, up 36% year over year.

After the earnings report was released, Geely Auto’s share price saw a three-day streak of gains, rising from its March 18 close of HKD 18.15 to its March 23 close of HKD 20.00, for a total increase of about 10.2% during the period. From 2026 to date (as of March 23), the overall increase has been over 12%. Geely Auto’s latest market capitalization is HKD 215.7 billion.

How Did Geely “Conquer” Mercedes?

2025 was hugely significant for Geely, with both sales and revenue achieving historic breakthroughs. Revenue reached RMB 345.2 billion, up 25% year over year, setting a record high. Amid intense competition and severe industry “involution,” Geely’s full-year vehicle sales reached 3.03M units, up 39% year over year—its first time ever exceeding 3 million, placing it among the world’s top tier.

Specifically, Geely’s new energy vehicle sales were 1.69M units, up 90% year over year, with a penetration rate of 55.8%—for the first time, more than half. This marked a successful transition to electrification. Geely Galaxy sold 1.24M units, up 150% year over year, becoming the fastest new-energy brand to break one million. Zeekr sold 224k units, with a new delivery high in Q4 for the single month, and quarterly profitability turned positive. On the technology and strategy front, Geely also positioned itself within the world’s first-tier group, becoming one of the few domestic automakers that covers both advanced intelligent driving and battery technology.

Recently, Mercedes officially announced that its new-energy vehicle platform architecture will use Geely’s new-energy vehicle platform architecture entirely. Mercedes will develop a brand-new electric vehicle platform based on Geely’s GEEA electronic and electrical architecture. Previously, the two sides had extensive business exchanges, from engines to hybrid systems and intelligent driving. Cooperation at the vehicle-level—almost unheard of in the past century. Being able to “win over” Mercedes shows that Geely’s technology has already been validated by the market.

In an era where cash is king, Geely’s cash reserves were RMB 68.2 billion, up 46% year over year. Cash net of deposits was RMB 49.9 billion, further strengthening its ability to withstand risks. The financial report disclosed that dividend per share was HKD 0.5, up 51.5% year over year, with a significant increase in shareholder returns, further stabilizing investors’ confidence.

What also cannot be overlooked is that Geely’s profit side saw increased revenue without corresponding profit growth: attributable net profit was RMB 16.85 billion, up only 0.24% year over year. Far below the 25% revenue growth, this implies a sharp decline in Geely’s net profit per vehicle. The financial report shows that in 2024, Geely Auto’s net profit per vehicle was RMB 7,727. In 2025, net profit was RMB 16.85 billion, with full-year total sales of 224k vehicles. This allows an estimated average net profit per vehicle of RMB 5,570, meaning net profit per vehicle fell by 27%. The net sales margin also dropped from 6.99% in the previous year to 4.82%, a decline of 2.17 percentage points.

From the vehicle categories Geely sells, it still mainly focuses on mid-to-low-end products. Mid-range Galaxy accounts for over 40%. Lynk & Co sold 350.5k units, up 23% year over year—its growth rate was below the overall growth rate. Momentum in the high-end weakened. Although Zeekr turned profitable, its average selling price and gross margin did not meet expectations. At the same time, Geely’s overseas sales growth also fell short of expectations. Full-year overseas sales were 420k units, up only 0.4% year over year, far below the industry’s 21.1% and peers like BYD and Chery. New-energy exports were 124k units, up 240% year over year; the base was low, and the total volume still leaves a big gap versus the leaders.

Knocking Down Japan’s No. 1

According to Xinhua News Agency, in 2025, the overall sales of Chinese automakers totaled 27 million vehicles, up 10% year over year. In the same period, Japanese automakers’ overall sales totaled 25 million vehicles. In the global new vehicle sales ranking, overall sales of Chinese auto brands surpassed Japan, taking the global “sales crown.” This marks the first time that global sales by Chinese automaker brands exceeded those of Japanese automakers, topping the world. This is another sweeping “overwhelming” after Chinese automakers became the world’s largest auto exporter in 2023, first surpassing Japan in auto exports.

Within Chinese automakers’ total annual sales of 27 million units, Geely Auto sold 3.03M vehicles, accounting for 1/9 of the total. Among independent-brand automakers, it ranked second only to BYD’s 4.6 million units. In the top ten list of global automakers by sales, three Chinese automaker companies made the list: BYD, SAIC Motor, and Geely Holding. BYD, with 350.5k units, ranked 6th by sales, moving up one position compared with 2024. SAIC Motor ranked 7th, up one position year over year. Geely Holding Group ranked 9th, up two positions compared with 2024. All three improved their rankings to varying degrees.

Toyota Motor still holds the top spot, with sales ranked No. 1 globally for six consecutive years. Worth noting is that it was Geely that overtook Japan’s other automaker giant—Honda. Although Honda remains in the global top 10 list, its rank slipped to 10th after being overtaken by Geely. Previously, Nissan—a常客 in the top ten—dropped out of the global top 10. This was also the first time Nissan failed to make the list since 2004. The decline in Japanese automakers’ sales is directly related to the strong rise of Chinese automakers such as Geely and BYD.

Chinese automakers can overtake Japanese automakers, and new energy vehicles have become the core key. From 420k units in 2021 to 16.49 million units in 2025, Chinese automakers’ new energy vehicle production and sales have ranked No. 1 globally for 11 consecutive years. China’s automotive market has built a complete industrial chain in electrification and intelligence, forming competitive advantages.

As China’s auto overseas markets continue to gain momentum, it further strengthens competitiveness in the global market. The China Association of Automobile Manufacturers predicts that in 2026, China’s auto exports will reach an estimated 7.4 million vehicles. This will allow China’s share in the world auto market to further rise from the 35.6% level in 2025, and Geely’s contribution will be hard to miss.

Why Can You Sell a Car to Dong Mingzhu?

It’s quite difficult to get “Sister Dong” to buy a Zeekr 009 Guanghui, because Gree itself also makes new-energy vehicles and has considerable confidence in its own vehicle-making technology. Dong Mingzhu previously told the media: “Now our energy storage equipment from Gree is exported to all over the world. Do you think our new energy is good?” She also said, “When the market needs electric vehicles, we’re fully capable of meeting the demand,” and “If you want electric vehicles, I can give them to you.” This shows her confidence in Gree’s Gree Titanium (formerly Yinlong) in battery technology (such as lithium titanate batteries) and vehicle manufacturing capabilities.

As representatives of industrialists, Dong Mingzhu and Li Shufu have long been fond of each other. Looking at the past, their values align closely: both are firm supporters of “long-termism, hard-core manufacturing, and core technology.” Dong Mingzhu emphasizes “handing life to the product, safety first,” while Li Shufu insists that “safety and quality are the lifelines.” This shared philosophy is the foundation of their very good personal relationship. Dong Mingzhu described Li Shufu as someone who “has spent decades working on safety and quality with consistency, which deserves admiration.” Li Shufu, meanwhile, views Dong Mingzhu as a benchmark figure for China’s manufacturing, and the two have jointly supported “China’s intelligent manufacturing.”

The two not only have a deep personal friendship; they also have substantive cooperation long before. Starting in 2019, Gree provided all-scenario central air-conditioning solution plans for Geely’s national smart factories and employee dormitories, and they signed long-term strategic procurement agreements.

On March 18, Li Shufu personally delivered the Zeekr 009 Guanghui to Dong Mingzhu. Dong Mingzhu didn’t just buy one for herself; she also ordered 9 vehicles together with her team, and on the spot she called out, “The world’s cars look to China, and China’s cars look to Geely,” creating an authoritative endorsement for a top-tier circle. Li Shufu personally stood behind the product, sending a signal of 100% confidence in Zeekr’s product strength, boosting both market sentiment and investor confidence.

It’s also worth noting that Dong Mingzhu previously said that Gree’s chips have been purchased by several automakers. Based on publicly available information, Gree chips have indeed entered the supply chains of some automakers, rather than remaining only at the level of verbal claims.

According to multiple media reports from late 2025 to early 2026, Gree’s automotive-grade chips—especially power semiconductor and silicon carbide modules—have successfully entered the supply chains of domestic leading automakers such as BYD and Changan. The data show that in 2025, Gree chips supported roughly 100k new-energy vehicles. Gree’s semiconductor business already achieved revenue of RMB 13.0–15.0 billion in 2024, and it is expected to have a net profit of about RMB 3.5 billion in 2025, indicating that it has achieved a real breakthrough in external sales (including for vehicles). In addition, reports say that Gree’s self-developed silicon carbide chip yield is as high as 99.6%, with costs 18% lower than the industry average—providing it with competitiveness to enter automakers’ supply chains.

But for now, there is no official confirmation that Geely will purchase Gree chips. This is regrettable: Li Shufu had Dong Mingzhu buy his own company’s cars, but whether Dong Mingzhu can get Li Shufu to apply Gree’s chips remains to be seen. The story between these two top business leaders is still ongoing.

By supporting domestic vehicles with action, Dong Mingzhu also planted seeds for Gree to expand into new scenarios such as automotive electronics. At the event, Dong Mingzhu clearly stated: “I hope that in the future Gree and Geely will have more cooperation,” implying room for synergy in areas such as motor and motor control systems, chips, and intelligent manufacturing. This car handover is an upgrade from supply-chain cooperation to brand mutual trust, paving the way for future technical, channel, and ecosystem cooperation.

In fact, this time Dong Mingzhu’s purchase of the car is also extremely important for Zeekr, because Zeekr is in a critical period of breaking through from “niche high-end” to “mass luxury,” and it urgently needs endorsement from top-tier figures. Dong Mingzhu’s choice directly breaks the conventional belief that “high-end MPVs can only choose an Alphard,” opening the door to the political-and-business high-end market for Zeekr 009.

Based on Gree Electric Appliances’ deep accumulation in high-end manufacturing and core components (chips, motors, energy storage), as well as Geely Holding Group’s leading position in intelligent mobility, vehicle manufacturing, and ecosystem planning, if the two sides deepen cooperation in the future, it would not be merely a simple “buy-sell relationship,” but could become a model of deep integration between “hard technologies” and “soft ecosystems” in China’s manufacturing industry.

This article is an original work for BT Finance. It may not be used, copied, disseminated, or adapted without permission. If it constitutes infringement, legal responsibility will be pursued.

Author | Mengxiao

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