Geely Auto slides 7pc as profit falls

Geely Auto's (0175) net profit decreased by 32 percent year-on-year to 5.53 billion yuan (HK$6.60 billion).

Its share price fell nearly 7 percent to HK$22.55 yesterday.

It declared a final dividend of HK$0.2 per share, compared to earnings per share of HK$0.56 each.

The company announced it was setting up a joint venture with its parent company, Geely Group, to engage in electric mobility-related products such as intelligent electric vehicles under the brand Zeeker and the provision of service in the mainland through an indirect wholly foreign-owned enterprise.

Zeeker plans to deliver electric vehicles to the market in the fourth quarter, said the brand's chief executive, An Conghui, who also works as executive director at Geely Auto and is president of Geely Holding.

Geely Auto has set its annual sales target for this year at 1.53 million units, an increase of nearly 16 percent over last year's total sales.

An said the increase in sales target lies in the expectation that demand for passenger vehicles in the domestic market will recover this year.

Though the chip shortage is taking a toll on the global market, An said it does not have a major impact on the group.