Geely interim result for first-half 2019 deemed ‘below expectation’

By ahmadzulizwan, 22 August 2019
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The ongoing US-China trade war has resulted in a lack of consumer confidence and contributed for the drop in income for Geely Automobile Holdings in the first half of 2019. With total revenue down by 11 per cent to RMB 47.56 billion (RM28.09 billion) compared to the same period last year (figure does not include revenue from Lynk&Co), the interim result is described by the management as below expectation. Profit is RMB 4.01 billion (RM2.37 billion), 40 per cent less YoY.

But this drop in revenue is not just because of the trade war, but also due to the change to China VI emission standards. On a positive note the Group’s overall market share for retail sales saw a growth from 6.3 per cent in 2018 to 6.5 per cent.

Additionally, the average selling price also sees an improvement since the proportion of high-end products increase. According to the company, the average retail selling price of the Group’s products has increased from RMB 77,000 (RM45,500) to RMB 123,000 (RM72,700), with vehicles priced over RMB 80,000 (47,300) making up for 71.3 per cent of sales.

Geely Automobile Holdings – made up of Geely Auto, Lynk & Co, and Geometry) sold a total of 651,680 vehicles in 1H 2019, or down 15 per cent YoY.

Concerning the export market, Group sales volume grew significantly by 344 per cent to 38,619 units. This contributes 5.9 per cent into the Group’s total sales, compared to 1.1 per cent in the same period 2018.