Shares of Geely Automobile (HK:0175) fell on Thursday after the Chinese automaker reported a 14% decline in first-half net profit due to higher costs and intense competition in the electric vehicle (EV) sector.
The company posted a profit attributable to shareholders of 9.29 billion yuan ($1.29 billion) for the six months ended June 30, down from 10.79 billion yuan a year earlier, despite a 27% rise in revenue to 150.3 billion yuan.
The results were weighed down by increased research and development expenses, which jumped 21% to 7.33 billion yuan, and a drop in average selling prices amid fierce price wars in China’s EV market.
Hong Kong-listed shares of the company fell 3% to HK$15.65 as of 04:28 GMT.
Geely’s total vehicle sales surged 47% to a record 1.41 million units, with EVs accounting for over half of deliveries. However, margins were pressured by discounts and foreign exchange volatility.
The company maintained its full-year sales target of 3 million vehicles but did not declare an interim dividend.
Source :
https://www.investing.com/news/stock-market-news/geelys-hy-profit-falls-amid-intense-local-competition-shares-decline-4190684
