China economy

Chinese car maker Geely’s profit surges 126 per cent, beating estimates

Domestic sales improved by 53.6 per cent year on year, earnings report shows

PUBLISHED : Wednesday, 22 March, 2017, 12:59pm
UPDATED : Wednesday, 22 March, 2017, 1:01pm

China’s Geely Automobile Holdings reported better-than-expected earnings for 2016 on Thursday morning, as net profit surged by 126 per cent to 5.1 billion yuan.

A Reuters poll of 31 analysts had estimated net profit would double to 4.6 billion yuan, its strongest growth since 2008. The figure is set to rise 52 per cent to 7 billion yuan in 2017, according to the poll.

Geely’s revenue jumped 78 per cent to 53.7 billion yuan as the group sold 765,970 vehicles in 2016, up 50.2 per cent from the previous year. Of these, 744,191 units were sold domestically, up 53.6 per cent from 2015, according to the company’s filing to Hong Kong Exchanges and Clearing.

Geely issued a profit alert last month, forecasting that its 2016 net earnings would more than double from 2.26 billion yuan a year earlier.

The company is proposing HK$0.12 per share as a dividend for the year.

Geely’s share price surged by more than 3.6 times to HK$12.6 on Tuesday, marking an all-time high, from a recent low of HK$2.7 last February.