Geely Automobile Posts Flat First-Half Net Profit as Gross Margin Narrows

By Sherry Qin

Geely Automobile Holdings Ltd. posted a flat first-half net profit despite higher revenue, as its gross profit margin was hurt by intensifying competition in the automobile market.

The Chinese car maker on Tuesday said its net profit for the period ended June 30 was 1.57 billion yuan ($216.8 million), compared with CNY1.55 billion a year earlier. Revenue rose 26% to CNY73.18 billion, benefiting from an increase in the proportion of new energy vehicles to total production, it said.

The gross margin was relatively stable at 14%, narrowing from 14.6% one year earlier. The carmaker attributed the lower margin to new-energy transformation and intensified competition.

Geely's first-half total sales was 694,045 units, up 13% on year, outpacing China's passenger vehicle sales growth during the same period.

Looking ahead, the company is optimistic on achieving its 2023 sales volume target of 1.65 million units, though there are still uncertainties in the market demand and macroeconomic environment, it said.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

August 22, 2023 01:08 ET (05:08 GMT)

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