(Yicai Global) March 21 -- Geely Automobile Holdings Limited [HK:0175], a key subsidiary of China's automobile giant Zhejiang Geely Holding Group, doubled its net profit last year, compared with the previous year. Several acquisitions by its parent company and strong sales provided additional drivers for its growth, the carmaker said.
Geely Automobile Holdings today released its 2017 annual report. The company's revenue grew 73 percent year-on-year to CNY92.7 billion (USD14.6 billion) last year, while net profit rose to CNY10.6 billion from CNY5.1 billion in 2016, it showed. The results beat the management's expectations and were mainly driven by strong sales from compact cars and SUVs as well as the resounding success of its first new energy vehicles, it said.
Several acquisitions by its parent company in recent years provided the company with technological accumulation, economies of scale, and the opportunity to expand into new markets as well as additional drivers for its long-term development, Geely Automobile added.
Last month, Hangzhou-based Geely Holding Group purchased a nearly 9.7 percent stake in Daimler AG, parent company of Mercedes-Benz, for USD9 billion, becoming its largest shareholder. It is Geely's largest acquisition so far.
Geely also acquired all equity of Volvo Car Co. for USD1.8 billion in 2010, followed by a 51 percent stake in Lotus cars, a British sports car brand, and an 8.2 percent stake in Volvo Group, parent company of Volvo Car Co.