Geely’s net profit fell more than 12% in 2021

Chinese automaker Geely reported a net profit of 4.9 billion yuan in 2021. Compared to the previous year, the indicator decreased by 12.4%. The company explained that the decrease in profits is due to the payment of large compensations to its employees. For this purpose, funds for 1.2 billion yuan were allocated. A year earlier, just over 4 million yuan was spent on compensation. If this factor is not considered, then the automaker’s annual net profit increased by 9.4% to 6.1 billion yuan. Geely’s revenue last year increased 10.3% to 101.6 billion yuan. This became possible due to the increase in the price of cars. In the year ended, 1 million 320 thousand cars were sold, which is 1% more than in 2020. Despite the growth in sales, their volume was below the plan by 180,000 vehicles. Geely hopes that it will be able to increase sales to 1,650,000 vehicles this year. After the publication of the annual report, Geely shares rose in price by almost 1%. Since the beginning of the year, the company’s capitalization has fallen by more than 40%.

Source: xCritical.com