Geely Automobile Holdings Ltd expects rising raw material prices and global chip shortages to pressure its profitability and sales this year, the Chinese company said on Wednesday, after posting a 12% fall in 2021 profit.
The Geely Automobile Holdings logo is pictured at the Auto China 2016 auto show in Beijing, China April 25, 2016. REUTERS/Kim Kyung-Hoonexpects rising raw material prices and global chip shortages to pressure its profitability and sales this year, the Chinese company said on Wednesday, after posting a 12% fall in 2021 profit.
The world's highest-profile Chinese automaker, thanks to its investments in Volvo Cars and Daimler AG , posted 2021 profit of 4.85 billion yuan , compared with 5.53 billion yuan in the previous year. Revenue rose 10% to 101.6 billion yuan. "The intensified competition in China, the rise in raw material prices, other pandemic-related disruptions and global shortages of chip supply have showed no signs of subsiding and should continue to put pressure on the sales performance and profitability of the Group in 2022," Geely Automobile said in a statement.Geely Automobile is targeting to sell 24% more vehicles this year, at 1.
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