Standard & Poor's raises Geely Holding Group's credit rating outlook to "stable", optimistic about the prospect of new energy vehicle development.

On January 23, the internationally renowned rating agency S&P announced that it had raised the credit rating outlook for Zhejiang Geely Holding Group and its core subsidiary GEELY AUTO to "stable," and confirmed that the long-term issuer credit rating of Zhejiang Geely Holding Group and GEELY AUTO is "BBB-," and the long-term issuance rating of Geely Holding Group's senior unsecured notes is "BBB-." This outlook upgrade fully reflects S&P's recognition of Geely Holding Group's competitiveness and development prospects in the new energy vehicle field. The reason for this outlook upgrade, according to S&P, is that due to the continuous optimization and improvement of its product matrix, Zhejiang Geely Holding Group will consolidate its position as one of the top new energy vehicle companies in China and Europe in the future. S&P believes that Geely Holding Group will continue to leverage economies of scale and cost control advantages to continuously improve profitability, further enhance free cash flow and leverage ratios. S&P predicts that in the next two years, Geely Holding Group's EBITDA margin is expected to increase to 7%-8%, and Debt-to-EBITDA is also expected to decrease to the level of 1.3 to 1.6 times. This forecast indicates that Geely Holding Group has strong capabilities in improving operational efficiency and debt risk control. This rating outlook upgrade will help enhance Geely Holding Group's image in the international capital market, reduce financing costs, provide strong support for future development; and also help the group expand its brand influence in domestic and foreign markets, further consolidating its leading position in the automotive field. In 2024, Geely Holding Group continued to outperform the market trend, with global total sales reaching 3.337 million units, a year-on-year increase of approximately 22%, of which sales of new energy vehicles reached 1.488 million units, a year-on-year increase of approximately 52%, with a new energy penetration rate of approximately 45%; overseas sales reached 1.222 million units, a year-on-year increase of approximately 21%. Guided by the "Taizhou Declaration," by 2027, Geely Holding Group strives to achieve total vehicle sales exceeding 5 million units, becoming a leader in electrification, intelligence transformation, and high-quality development, and forming differentiated green intelligent mobility ecosystem competitiveness.