Introduction
Geely Automobile Holdings Ltd., a Chinese car maker, has announced its first-half financial results for the period ended June 30. Despite a 26% increase in revenue, the company posted a flat net profit due to intensified competition in the automobile market. The gross profit margin also experienced a slight decline, attributed to new-energy transformation and increased competition.
Financial Results
- Net profit for the first half of the year remained unchanged at 1.57 billion yuan ($216.8 million), compared to the previous year’s figure of CNY1.55 billion.
- Revenue grew to CNY73.18 billion, benefiting from the higher proportion of new energy vehicles in total production.
Impact of Competition
The intensifying competition within the automobile market has impacted Geely’s gross profit margin, resulting in a slight narrowing from 14.6% to 14%. The company acknowledges this challenge and highlights the need for continued adaptation to new-energy transformation.
Sales Performance
Geely achieved a 13% increase in total sales during the first half of the year, reaching 694,045 units. This growth outpaced China’s passenger vehicle sales growth over the same period.
Future Outlook
Looking ahead, Geely remains optimistic about achieving its sales volume target of 1.65 million units by 2023. However, the company acknowledges the presence of uncertainties in the market demand and macroeconomic environment.
In conclusion, Geely Automobile Holdings Ltd. has reported steady financial performance during the first half of the year, with increased revenue and stable net profit. Despite challenges posed by intensified competition, Geely maintains a positive outlook for the future and aims to achieve its sales targets.
