Geely in profit warning

Geely Automobile expects its 2014 net profit to halve from 2.66 billion yuan (US$430 million) in 2013, as a result of the rouble's slump, the company said in a statement on the Hong Kong Stock Exchange.

Apart from Geely, Great Wall Motors, Chery Automobile, Lifan Industry, JAC Motors and BYD are among the worst hit Chinese automakers that suffered from the changes in the Russian market.

The same chill is being felt by Chinese running business in Russia. Ms. He, who engages in fishing kits and outdoor outfits in St. Petersburg told the Beijing News that most Chinese businessmen, mainly in the clothes and home appliance trades, are suffering huge losses as the rouble dives.

According to her, most local Chinese businessmen were stuck in the dilemma of whether or not undersell their goods. "Underselling means a loss but hoarding means an even huger loss," she said.

Go to Forum >>0 Comment(s)