Hong Kong-listed Geely Auto reported today a double-digit percentage gain in 2011 profit despite a fall in its Chinese sales. Operating income rose 4.3% from 2010 to 20.96 billion Yuan; net profit reached 1.543 billion Yuan, up 12.8%.
Geely sold 422,000 cars worldwide last year (not including Volvo cars), 1% more than 2009. The target of 480,000, set in early 2011, proved to be overambitious. Deliveries in mainland China dropped 3% to 382,000, while the overall local market expanded 2.5%. In oversea markets, on the other hand, Geely almost doubled sales, delivering 39,600, 93% more than a year ago.
The company linked shrinking sales in China to the under-performance of its Gleagle and Englon brands, which sold 11% and 5% less units in 2011. Models from the Emgrand division, generally more expensive than those bearing the Gleagle or Englon emblem, gained popularity among consumers, as sales went up 47% to 109,800. Earlier this month, Geely was reported to be considering axe one of the two under-performing divisions.
For 2012, the company aims to sell 460,000 units.