Geely Auto earnings squeezed by Covid lockdowns and chip shortage
Leading Chinese carmaker Geely Auto said its profits had almost halved as a semiconductor shortage and Covid-19 restrictions hit demand for vehicles and disrupted production. Profits before tax dropped 55 per cent to Rmb1.3bn ($191mn) in the first six months of the year, compared with the same period in 2021, the group said on Thursday. Total vehicle sales fell 3 per cent to 613,845.
Shares in Geely Auto, the Hong Kong-listed subsidiary of one of China’s largest carmakers, dropped as much as 4 per cent following the report.
The earnings report was the latest sign of the impact of China’s persistent Covid-19 lockdowns on its once high-flying companies. Geely was further hit by a chip shortage that has shaken up the global auto industry.