Geely Automobile’s core profit attributable to shareholders rose 46.2% year-on-year (YoY) in the first half of 2026, as rapid overseas growth and a shift toward higher-priced vehicles helped offset a sharp decline in domestic sales.
The Chinese automaker recorded core profit of RMB 9.68 billion (USD 1.4 billion) for the six months ended June 30, while revenue increased 14.7% to RMB 173.6 billion (USD 25.8 billion), according to interim results released on August 17.
Geely’s gross profit climbed 25.7% to RMB 31.15 billion (USD 4.6 billion), while its gross margin expanded 1.6 percentage points to 17.9%.
The improvements came even as overall vehicle sales rose just 1% to 1.42 million units.
Geely attributed its stronger financial performance partly to globalization and premiumization, which lifted its average selling price by RMB 15,000 (USD 2,225.7) to RMB 112,000 (USD 16,618.7). A higher proportion of premium and export models also contributed to the improvement in gross margin.
Geely exported 474,228 vehicles in the first half, up 157.6% YoY and equivalent to about one-third of its total sales. The company described its overseas business as one of its key growth drivers.
Its export growth substantially outpaced the broader Chinese passenger vehicle market, where exports increased 71.7% over the same period, according to figures cited by Geely.
The gap was wider for new energy vehicles (NEVs). Geely’s NEV exports surged 585.0%, compared with 127.7% growth in China’s overall NEV passenger vehicle exports. Geely said its growth rates for both total exports and NEV exports ranked first among major Chinese automotive exporters.
That overseas expansion helped cushion weaker demand at home.
Geely sold 948,730 vehicles in China during the first half, down 22.6% YoY. The decline was slightly less severe than the 24.3% contraction in China’s domestic passenger vehicle market cited by the company.
Sales of Geely’s internal combustion engine and hybrid vehicles declined 8.8%, compared with a 17.0% contraction in the corresponding segment of the Chinese market.
The company said demand for passenger cars in China declined amid intense competition during the period.
Despite the improvement in its underlying operations, Geely’s reported profit attributable to shareholders fell 1.8% to RMB 9.09 billion (USD 1.3 billion).
Foreign exchange movements were a major factor behind the divergence.
Geely recorded an after-tax foreign exchange loss of RMB 550 million (USD 81.6 million) in the first half, compared with a gain of RMB 2.64 billion (USD 391.7 million) a year earlier, representing a YoY swing of about RMB 3.19 billion (USD 473.3 million).
Expenses also rose as the company invested in new products and overseas expansion. R&D expenditure increased 25.5% to RMB 9.20 billion (USD 1.4 billion) from RMB 7.33 billion (USD 1.1 billion), while distribution and selling expenses rose 16.3% to RMB 9.83 billion (USD 1.5 billion).
Geely’s second-quarter earnings nevertheless improved substantially from a year earlier. Based on its first-half and first-quarter disclosures, attributable profit was approximately RMB 4.92 billion (USD 730 million) in the second quarter, representing growth of about 37% YoY.
Geely’s Hong Kong-listed shares rose following the earnings announcement.
Its primary HKD counter closed at HKD 18.67 (USD 2.4) on August 17, up 4.8% from its previous close of HKD 17.82 (USD 2.3). The shares reached HKD 18.93 (USD 2.4) during the session, or 6.2% above the previous close, before easing in subsequent trading.
By the market close on August 20, the stock had slipped slightly to HKD 18.65 (USD 2.4).
Note: HKD, RMB figures are converted to USD at rates of HKD 7.84 = USD 1 and RMB 6.74 = USD 1 based on estimates as of August 21, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.