AutoBeta(AutoBeta.net)08/22 Report--

Geely Automobile Group's net profit for the six months ended June 30, 2019 was 4.009 billion yuan, down 40 per cent from a year earlier, according to a recent report on the company's operating results for the first half of 2019.

According to the performance report, Geely's revenue in the first half of the year was 47.558 billion yuan, down 11% from the same period last year, while net profit was 4.009 billion yuan, down 40% from the same period last year. The total revenue is slightly higher than the previous market estimate of 45.92 billion yuan, and the net profit is slightly lower than the market estimate of 4.04 billion yuan.

In terms of sales, Geely Group sold a total of 651700 new cars in the first half of this year, down 15% from the same period last year; on the export side, it increased by 344% to 38600; and in the first half of this year, sales of new energy vehicles were 57600. Even so, Geely ranked first in sales of Chinese brands in the first half of the year.

In July, Geely cut its full-year sales target by 10 per cent to 1.36 million from 1.51 million, and Geely had achieved 48 per cent of its full-year sales target by the first half of this year.

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Geely's share of the passenger car retail market in China rose to 6.5% (6.3% in the first half of 2018); the pure electric brand Geometry and its first car shape "Geometry A" were successfully launched; the profit contribution of the joint venture company increased by 26% (mainly from Jizhi auto finance and Lecker); the sales of new energy models increased by 301%; and the total R & D cost to maintain competitiveness increased by 82%.

Geely said there were two main reasons for the group's lower-than-expected performance in the first half of 2019. First, because of the overall decline in sales in China's automobile market; second, since July, some parts of China have implemented the national six emission standards ahead of schedule. Geely actively offered higher discounts and preferential measures in order to reduce dealer inventory in the first half of the year, thus weakening the performance of gross profit margin.

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