China's Geely Snaps Profit-Decline Streak, Raises Sales View For 2023

Geely Automobile Holdings Ltd (OTCPK: GELYY) (OTCPK: GELYF) on Tuesday reported yearly earnings, snapping four consecutive years of profit decline, owing to better sales.

What Happened: Geely Auto posted yearly revenue of RMB147.96 billion ($21.51 billion), a 46% jump year-on-year. Profit attributable to shareholders rose 9% to RMB5.26 billion.

The group sold a total of 1.43 million units of vehicles during the period, an 8% increase from a year ago. Export wholesale volume surged 72% to 198,242 units. Geely’s new energy vehicle sales, meanwhile, saw a 300% jump year-on-year to 328,727 units.

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“Impacts brought by the surging cost of batteries, chips and other parts and components as well as the significant investment we made into our new business Zeekr during its early development stage put pressure on the profitability of the Group during the period,” the company said.

Further, China's automobile market experienced a more challenging supply chain in 2022 as compared to 2021.

For 2023, the company has set a sales volume target of 1.65 million vehicles, a 15% increase from the sales volume achieved in 2022.

Geely is looking to upscale the promotion of new energy products for the year ahead while also launching a more advanced autonomous driving solution.

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