Update | Geely first-half profit jumps 128pc spurred by Volvo technology and design
Net profit for the six months hits 4.3 billion yuan (US$643 million) on revenue of 39.4 billion yuan, which represented an 118 per cent jump
Geely Automobile Holdings, the Chinese carmaker whose parent owns the Swedish car marque Volvo, has reported a thumping 128 per cent jump in after-tax half-year profit, driven by soaring sales, as it improved the design and engineering of its product range.
Net profit for the six months, ended June 30, was 4.3 billion yuan (US$643 million) on revenue of 39.4 billion yuan, which represented an 118 per cent jump. The earnings beat analysts’ estimates of 4.0 billion yuan.
And its president An Conghui said the automaker was equally upbeat for the remainder of the year.
“Our sales performance is continuously strong and our upcoming new models received very good market feedback. We’re confident in achieving a 10 per cent rise in full year sales volume target of 1.1 million units,” An added.
The company has not distributed any dividend, but starting from next year, it “should have a better chance of distributing an interim dividend and better full year end dividend,” added Gui Shengyue, its chief executive. “We have such good performance.”
Peter Chen, a Shanghai-based engineer with US components maker TRW, said: “Geely has emerged as one of the biggest winners among the domestic auto market, as it gradually assimilated Volvo’s technologies and designs.