Geely drives to 16% gain in profit
By Jin Jing |
March 24, 2011, Thursday
|
Print Edition
Print Edition
GEELY Automobile Holdings Ltd reported its 2010 net profit increased by 16 percent though annual sales growth lagged behind industry average.
Net income rose to 1.37 billion yuan (US$209 million) last year, up from 1.18 billion in 2009, Geely said in a statement filed with the Hong Kong stock exchange yesterday. Its revenue rose 43 percent year on year to 20 billion yuan.
The listed unit of China's largest private car maker, Zhejiang Geely Holding Group Co, attributed the profit growth to higher sales income and more market demand for its higher-end product mix.
Last year, Zhejiang-based Geely boosted sales by 27 percent to 415,843 units, underperforming from the 32 percent industrial growth. The fallout also drove Geely out of the top 10 biggest car makers in China last year.
Geely was among auto makers that reported slower sales last year after China scaled back a purchase tax on small cars. Risks for further slowdown mounted this year after the expiration of such a tax.
Geely's sales rose 6.7 percent in the first two months, falling short of the 10-percent expectation for industrial passenger car growth.
Chen Huanyu, analyst with Guotai Junan Securities, said the policy change had a more-than-expected impact on Geely.
"In addition, the newly introduced sales quota in Beijing will prompt car makers to opt for higher-end models. We are lowering our sales growth forecast for Geely from 13 percent to 10 percent this year," he said in a note.
Other analysts estimated the purchase of Volvo Car Corp may help Geely to reshape its brand image and benefit from technology upgrades in the long run.
Net income rose to 1.37 billion yuan (US$209 million) last year, up from 1.18 billion in 2009, Geely said in a statement filed with the Hong Kong stock exchange yesterday. Its revenue rose 43 percent year on year to 20 billion yuan.
The listed unit of China's largest private car maker, Zhejiang Geely Holding Group Co, attributed the profit growth to higher sales income and more market demand for its higher-end product mix.
Last year, Zhejiang-based Geely boosted sales by 27 percent to 415,843 units, underperforming from the 32 percent industrial growth. The fallout also drove Geely out of the top 10 biggest car makers in China last year.
Geely was among auto makers that reported slower sales last year after China scaled back a purchase tax on small cars. Risks for further slowdown mounted this year after the expiration of such a tax.
Geely's sales rose 6.7 percent in the first two months, falling short of the 10-percent expectation for industrial passenger car growth.
Chen Huanyu, analyst with Guotai Junan Securities, said the policy change had a more-than-expected impact on Geely.
"In addition, the newly introduced sales quota in Beijing will prompt car makers to opt for higher-end models. We are lowering our sales growth forecast for Geely from 13 percent to 10 percent this year," he said in a note.
Other analysts estimated the purchase of Volvo Car Corp may help Geely to reshape its brand image and benefit from technology upgrades in the long run.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
