Chinese carmaker Geely Auto said its profits had more than halved as a semiconductor shortage and COVID-19 restrictions hit demand for vehicles and disrupted production, reports the Financial Times. Pre-tax profits dropped 55% to RMB 1.3 billion ($191 million) in the first six months of the year, compared with the same period in 2021, the group said on Thursday. Total vehicle sales fell 3% to 613,845, though revenues rose 29% to RMB 58.2 billion.
Car sales were one-third of its annual target of 1.65 million vehicles, but the group expected demand to recover during the second half of the year and said it planned to hit its target. Shares in Geely Auto, the Hong Kong-listed subsidiary of one of China’s largest carmakers, dropped as much as 4% following the earnings report.
The tumble in profits is the latest sign of the impact of China’s persistent COVID-19 lockdowns on its once high-flying companies. Geely was further hit by a chip shortage that has shaken the global auto industry.