China's Geely Automotive Drops 32% in Net Profits in H1

SHANGHAI - September 12, 2007:

Geely Automobile Holdings Limited and its subsidiaries announced last week that its net profit amounted to HKD 82 million ($10.54 million US) for in the first half of this year, representing a drop of 32% compared to the same period a year earlier.

The decline was mainly due to a slide in the sales volume of low end sedans and the large increase in the net non-cash expenses related to the outstanding convertible bonds.

Excluding the non-cash expenses related to the outstanding convertible bonds, the Company's net profit decline would narrow to only 12%.

During the first half year, Geely Automobile's turnover was 5% lower compared with the corresponding period last year to approximately HKD 66 million ($8.48 milion US).

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