Geely first-half profit beats estimates as price war rages on

Geely posted first-half earnings that beat estimates, weathering a price war that continues to hit the industry. Net income rose 1 percent to 1.57 billion yuan ($215 million) in the six months ended June 30, the company said in a statement Tuesday, beating analyst estimates of 1.51 billion yuan, according to data compiled by Bloomberg. Revenue climbed 26 percent to 73.18 billion yuan. The price war has forced most of the industry to slash prices on some models, and Geely’s gross margin remained at 14 percent, despite the growth in revenue and decline in battery raw material prices. Total research and development costs fell 8 percent to 3 billion yuan.