Chery’s profit falls even as its business improves

Chery Automobile's first-half net profit fell 11.7% year-over-year to CN¥8.57bn (US$1.26bn), yet the decline obscures a core business that actually strengthened during this period: gross profit rose 25.1%, to CN¥23.04bn, and gross margins expanded 3.1pts to 16.1%. The gap can be attributed almost entirely to a 27.1% drop in other income and gains, driven mainly by lower foreign exchange gains, more so than any weakening in Chery's core operations.

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Originally posted on: https://www.automotiveworld.com/analysis/cherys-profit-falls-even-as-its-business-improves/