SHANGHAI (Reuters) – the chinese Geely Automobile Holdings Ltd (0175.HK) said on Wednesday, in the first half of the year with a net profit of a pallet of 40% to be in the middle of a sustained downturn in the world’s largest auto market, as well as the ability to predict the uncertain outlook for auto demand for the remainder of the year.
FILE PHOTO: The logo of Chinese car manufacturer Geely Automobile will be displayed on the second media day of the Shanghai auto show in Shanghai, China-April 17, 2019 at the latest. REUTERS/Aly Song
Geely, china’s highest-profile car maker worldwide, thanks to its investment in Volvo, and the Daimler ag (DAIGn.DE), has reported a net profit of 4.01 billion yuan ($568.5 million), compared to 6.67 billion yuan in the same period of the previous year.
EPA analyst, Kenneth Lee was expected that Geely report of 4.78 billion yuan, net profit for the period, according to the Refinitiv of the data.
The profit in the first half, “which was negatively affected by higher rebates and incentives, and to reduce dealer inventories ahead of the official implementation of China’s 6 emissions standards, in some areas,” Geely said in a filing, referring to the more stringent vehicle emissions standard in China was implemented in July.
The total revenue for the first half of it was 47.56 billion yuan, a decrease of 53.71 billion yuan, compared with the same period of time, in 2018, it said.
It is sold 651,680 of the vehicles in the January-June period, and about 15% lower than the same period of the previous year.
Retail sales volume, however, it was only a mild y-o-y growth in the same period of time, Geely said, adding that it plans to launch at least eight new or refreshed models in the next 12 months.
China’s total auto sales fell by 4.3% in July, down for the 13th consecutive month, according to data from the country’s top industry body, the China Association of Automobile Manufacturers (CAAM).
Even though the Chinese government started to introduce measures to stimulate car demand, in the passenger vehicle market in China has shown few signs of improvement. Recently, the China-U.S. trade dispute, it seems to have deteriorated further, resulting in greater uncertainty in passenger car demand in China and the rest of the year, the filing said.
Last month, Geely, cut its sales target for the year to 1.36 million units of 1.51 million units, which will reduce the dealers ‘ inventory in the midst of the uncertainty in the overall market.
Geely sold 1.5 million cars last year, 20 per cent higher than the figure for march of 2017.
Reporting Yilei Sun, and Brenda Goh in Shanghai; Editing by Darren Schuettler and Muralikumar Anantharaman