- Excluding the impact of foreign exchange fluctuations, Geely's core profit grew 31%, contrasting with the broader weakness in China's auto market.
- Strong overseas exports drove a 15% increase in Geely's first-quarter revenue.
Geely Auto saw a decline in its first-quarter profit attributable to shareholders, reflecting the significant impact of foreign exchange fluctuations on the Chinese automaker's book earnings.
The company's profit attributable to shareholders of the parent for the first quarter was 4.17 billion yuan ($609 million), down 27% from a year earlier, according to an earnings report released on Wednesday.
Despite the drop in profit, Geely's total revenue in the first quarter reached 83.78 billion yuan, an increase of 15% from the same period last year.
The decline in profit was primarily attributed to the different impact of foreign exchange fluctuations, as currency movements in the same period last year brought significant net gains to the company, Geely said.
After excluding non-recurring items such as foreign exchange gains and losses, the Chinese automaker's core business operations maintained strong growth momentum.
Geely's core profit excluding non-recurring items reached 4.56 billion yuan in the first quarter, surging 31% from a year earlier and reflecting improved operating efficiency.
This robust growth in core profit was mainly driven by the strong performance of overseas export sales, as well as a continuous increase in the proportion of high-value products in total sales.
In the first quarter, Geely's total sales volume reached 709,358 units, edging up 1% from a year earlier, while new energy vehicle (NEV) sales achieved a 9% year-on-year growth.
The performance in overseas markets was particularly outstanding. The company's overseas sales in the first quarter reached 203,024 units, surging more than 100% year-on-year and serving as a core driver.
The counter-trend growth in Geely's core profit contrasts sharply with the broader weakness in the Chinese auto market and the profitability struggles faced by its competitors.
Rival BYD saw its net profit plunge 55% in the first quarter, as the beginning of the year entered a traditional slow season for sales and supportive policies faded.
As an intense price war in the domestic market continues to squeeze profit margins, the strong overseas export business is becoming a crucial pillar for Geely Auto to withstand the pressure.
($1 = 6.8359 yuan)
