Geely Automobile Holdings has boosted first half profit after sales in China rose.
Announcing interim results for the first half of 2016, the group said sales in China rose 11% year on year to 280,337 units in the first half of 2016. Revenues increased 31% to CNY18,089m (US$2,722.64m) and profit attributable to the equity holders of the company was up 36% to CNY1,907m. Earnings per share (EPS) also rose 36%, to CNY21.65.
“With the continuous investments in the areas of new energy vehicles, new technologies and innovations like advanced powertrain and high-performance turbocharged engines over the past few years, the group’s products have become far more environmentally friendly and fuel-efficient. The launch of Emgrand EV, the group’s first new energy vehicle model, in November 2015 marked the beginning of its gradual transition from traditional to new energy vehicles,” Geely said in a statement.
Following the successful launch of the Boyue SUV and Emgrand GS (the group’s first crossover model) in the first half of 2016, a new compact SUV will be launched later this year.
“These new SUV and crossover products should enable the group to cater for the current rapid growth in SUV demand in China,” Geely said.
A new generation of A-segment sedan model is scheduled to be launched in the second half of the year “to consolidate the group’s current leading position in China’s A-segment sedan market”.
“With signs of continued strong sales enjoyed by new products launched recently and the initial good market feedback for upcoming new model launches in the remainder of the year, the management team is of the opinion that the group’s overall performance in 2016 should exceed our original expectations set at the beginning of the year and therefore decided to raise the group’s full year sales volume target by 10% from 600,000 units to 660,000 units, which is up 29% from 2015,” Geely added.