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Geely's First-Half Profit Slips 2% Despite Record Overseas Growth

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Geely's First-Half Profit Slips 2% Despite Record Overseas Growth

Geely Automobile (HKG:0175) reported a 2% year-over-year decline in net profit for the first half of 2026, as tighter domestic competition and the expiration of electric vehicle subsidies pressured margins, even as a surge in international exports pushed total revenue to new highs.

Profit attributable to owners slipped to 9.09 billion yuan from 9.26 billion yuan in the prior-year period, while earnings per share declined to 0.82 yuan from about 0.90 yuan a year earlier, according to a Monday filing with the Hong Kong bourse.

However, revenue jumped 15% year over year to a record 173.6 billion yuan from 151.4 billion yuan.

Geely's expansion to international markets helped it hedge against cooling demand at home, where sales volumes were impacted by the end of government EV purchase subsidies.

Overall sales volume in the first half jumped 24% year over year to 1.7 million units, driven by a 158% surge in export sales volume to 474,228 units, surpassing the company's full-year 2025 overseas volume. The Zeekr brand was the group's primary growth engine, with sales volume jumping 99% and capturing the lead in Thailand's electric MPV segment.

In contrast, domestic sales for its flagship Geely and Lynk & Co brands faced headwinds, falling 4% and 11%, respectively.

Management noted that the Geely brand expanded its footprint in Europe, while the flagship Lynk & Co brand saw increased adoption across the Middle East and Vietnam.

In June, Zeekr Vice President Mars Chen said the Middle East disruption helped bolster global demand for electric vehicles, lifting demand for Geely's cars by at least 10%.

No dividends were announced for the first half.

The carmaker's shares rose 3% during the afternoon trade in Hong Kong on Monday.

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