Geely expects that the net profit will increase more than 100% in the first half of year

Geely Auto released announcement yesterday that the net profit for the group is expected to grow more than 100% on the basis of RMB 1.91b during the first six months in the year. It’s said that the growing net profit is mainly contributed to the large growth for sales revenue in the reporting period.

Previously, Geely released announcement that Geely Auto has a total sales volume of 530,627 units in the first six months, increasing 89% year-on-year and accomplishing 53% of the annual target. In the meantime, Geely also announced to increase its 2017 annual target to 1.1m units, 10% higher than the previous one. It’s expected that there are large possibilities for Geely to achieve the goal, considering of the newly launched vehicles and optimization of sales channels.

It’s also reported that Geely is solving the bottleneck problems for its hot models, with expanding capacity for Baoji, Chunxiao, Jinzhong and Linhai production lines. The annual capacity is expected to exceed 1.2m units in 2017. The shortage for automatic gearboxes will be solved before August of 2017, further releasing NL-3’s potential. It’s expected that the gross profit rate will be supported by the strong pricing capacity and effective cost control.