Daily Management Review

Geely's profit loses 35% due to lockdowns


In the first half of the year, the net profit of Chinese automaker Geely decreased by 35% to 1.55 billion yuan ($228 million).

As a result, Geely's profit fell far short of forecasts of analysts surveyed by Bloomberg, who expected a profit of 2.77 billion yuan. In this instance, the company's revenue for the first half of the year increased by 29% to 58.2 billion ($8.6 billion), exceeding expectations.

Geely cites "disruptions in production and sales due to pandemic measures in several Chinese cities and a global scarcity of memory chips" as the causes of the sharp decline in profitability. The two-month shutdown in Shanghai this spring notably hurt the company, along with other Chinese manufacturers.

During the same period, the number of cars sold decreased by merely 3% to 613,800. At that, it only represented a third of the total anticipated car sales for 2022. However, Geely anticipates growing demand in the year's second half to help it reach its goal of selling 1.6 million vehicles overall.

source: bloomberg.com