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Geely’s Net Profit Plunges 40%
China’s Geely Automobile Holding Co. says its net profit in the first half of 2019 skidded 40%, as unit sales and revenue suffered double-digit declines.
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China’s Geely Automobile Holding Co. says its net profit in the first half of 2019 skidded 40%, as unit sales and revenue suffered double-digit declines.
The company’s net profit in January-June dropped to 4 billion yuan ($568 million) from 6.7 billion yuan in the same period last year. Unit sales shrank 15% to 651,700 vehicles. Revenue fell 11% to 47.6 billion yuan ($6.7 billion).
Geely notes that, like other carmakers in China, the company took a profit hit as it helped dealers reduce their bloated stockpile of new cars. The company notes that China’s abrupt and selective rollout of tougher new emission standards in July also affected sales in some urban markets.
Geely had expected at least match last year’s sales volume, which jumped 20% to a record 1.5 million units. Now the company anticipates deliveries of 1.36 million vehicles in 2019.
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