China’s Geely Automobile said on Monday its first-half net profit jumped 17 percent from a year ago, boosted by higher sales but warned that demand will slow in the next six months.
Net profit for January-June rose to 937.6 million yuan ($146 million), from 804.8 million yuan a year earlier, the auto maker said in a statement to the Hong Kong stock exchange.
The group sold a total of 213,381 vehicles in the first half, up 9 percent from the same period last year, helped by demand for its “Emgrand EC7″ sedan model in China, the world’s largest auto market.
“The group’s performance in the first half of 2011 was broadly in line with previous expectations despite uncertain macro-economic conditions in China,” Geely said in the statement.
Geely executives said later the firm was on track to meet its full-year sales volume target of 480,000 units, according to Dow Jones Newswires.
The auto maker said it will launch five new models this year, including two mid-size sedans and two SUVs, to boost sales.
But it warned that sales would slow in the second half and would adopt a “more conservative stance” and implement more stringent cost control amid fears over the world economic outlook and rising inflation.
“Motor vehicle sales in most parts of the world market have been weakening since the beginning of the year and look set to deteriorate further in the remainder of the year given the high level of uncertainties in most of the major economies, higher inflation and tightening monetary policies in China.
“All of these factors could pose significant threat to the group’s performance in the second half of 2011,” it said.