(Yicai Global) Aug. 17 -- Volvo Cars, the Swedish automaker owned by Chinese manufacturer Zhejiang Geely Holding Group, is in no hurry to file for its initial public offering, according to its parent's chief financial officer.

The firm is very profitable and does not urgently need to list, Daniel Li told Yicai Global. Volvo's board still needs to discuss the matter and it has not yet sent an IPO proposal to Geely, he added, saying the parent will have the final say but respects the opinions of the unit's directors.

Geely has been making more overseas mergers and acquisitions in recent years, but is not just investing blindly, Li said. "We're not making M&As just for the sake of M&As," he added, saying every purchase is thoroughly vetted in terms of Geely's future strategy.

"As investment banks see it, Volvo is one of few well-known carmakers that hasn't yet landed on the capital market," he continued, saying many have been plying a possible listing route for the firm and have been in touch to underwrite the IPO.

On speculation that Geely's overseas investments were straining its capital, Li said that the company did not use domestic funds or put itself or subsidiaries up as collateral when it stealthily acquired a USD9 billion stake in German auto giant Daimler, which runs the Mercedes-Benz brand.

"The investment will generate profit up to a certain point, but we don't expect much more than that," he added, saying the deal was made to help create future collaboration opportunities and not for investment returns. "The risks were controlled tightly, and at worst, we could lose about 10 percent."

Despite the tight risk controls, Geely is still racking up a heap of liabilities. It had CNY184 billion (USD26.7 billion) as of the end of the first quarter, almost doubling from the end of 2014 to give it a current debt ratio of around 50 to 60 percent.

That figure comes in high compared with its compatriot carmakers, but is absolutely up to standard when compared with global giants, Li said, noting that Volkswagen, Mercedes-Benz and BMW all have an asset-liability of 78 percent or higher.

Editor: James Boynton