Li, 63, the founder of the second largest automotive group in China by passenger car sales, announced his resignation shortly after Hong Kong-listed Geely reported record first-half revenue amid fierce competition in China’s car market on Monday, according to Bloomberg.

Andy An Conghui, 56, an executive director, on Tuesday filled the vacancy left by Li, the company said in a filing with the Hong Kong stock exchange.

"We now initiate the campaign to cultivate professional talent and build a professional team," Li said in a statement. "The succession aims to foster a positive environment for the healthy growth of our own talent and the healthy development of the company culture."

Li said in June at a forum during the Chongqing Auto Show that Geely would formulate a succession plan to support its further growth, without providing details.

Li Shufu seen at an event in Sweden in April 2025. Photo by Reuters

The filing said Li would remain chairman of Zhejiang Geely Holding Group, the parent company of Geely Auto, which also owns Volvo Cars and a stake in Mercedes-Benz Group.

Jerry Gan Jiayue, former head of Geely Auto’s car development and sales, will become the carmaker’s CEO, replacing Gui Shengyue, according to the filing.

Geely Auto reported net profit of 9.1 billion yuan (US$1.35 billion) for the first six months of 2026, down 2% from a year earlier, while revenue reached a record 173.6 billion yuan, up 15% year on year.

The company delivered 1.42 million vehicles to customers in the first half, a 1% increase from a year earlier, while exports surged 158% to 474,228 units.

Dai Yong, the company’s chief financial officer, warned about conditions in China’s automotive sector on Monday, urging domestic rivals to avoid "vicious price competition" to prevent huge losses, South China Morning Post reported.

Geely Auto makes both electric and petrol-powered vehicles under brands including Zeekr, Lynk and Galaxy. It trails only BYD, the world’s largest EV assembler, in sales in mainland China.

The company has targeted overseas sales of 920,000 vehicles in 2026, more than double its total last year.

Net earnings from selling a car priced at 100,000 yuan now stood at just 1,500 yuan, translating into a profit margin of 1.5%, according to the China Association of Automobile Manufacturers. That was down from a 3.4% profit margin in May.

Dai said Geely Auto would strongly advocate coexistence with its rivals in China and overseas without using price wars to drive smaller competitors out of the market.

Li has a net worth of $16.3 billion as of Tuesday, according to Forbes. Last year, he ranked 19th among China's 100 richest.