Geely first-half profit rises 37pc as both domestic sales and exports jump
Domestic sales increase 17 per cent year on year as exports jump 26 per cent, boosted by rising share of markets in Russia and the Ukraine
Mainland carmaker Geely Automobile posted stronger-than-expected growth in first-half profit as car sales recovered at home and exports picked up but the company said it expected a challenging second half.
Net profit for the six months to June rose 37 per cent to 1.4 billion yuan, the company said in a statement filed with the Hong Kong stock exchange. Analysts had been expecting 20 per cent profit growth.
Revenue jumped 33 per cent to 14.85 billion yuan (HK$18.8 billion) as Geely sold 263,544 units in the first half, an increase of 19 per cent from the same period last year. That came about largely because of strong demand for the EC7 model and a recovery in sales in the mainland market of models such as Geely Panda, Vision and GC7.
Domestic sales grew 17 per cent year on year to 213,106 units, compared with a 9 per cent decline in the first half of last year. Exports continued to grow too, rising 26 per cent, to 50,438 units, boosted partly by an increase in market share in countries such as Russia and Ukraine, the statement said.
The company said the operating environment would be challenging for the remainder of the year. The economic environment in its major markets would be "more difficult" and the weakening of emerging-market currencies against the US dollar and yuan could dampen exports, it said.
The domestic market would see increased pressure as a result of competition from international companies and a more stringent vehicle warranty policy, Geely said.
