China8217;s Geely H1 net profit up 9

Domestic sales volumes dropped 9 percent,but exports trebled to 40,061 units.

Exports have been a great help for Geely,especially at a time when domestic demand is slowing,Zhang Xin,an analyst with Guotai Junan Securities,said ahead of Wednesday8217;s earnings release.

Exports over the first 7 months of this year hit 50,420 vehicles 8211; more than a fifth of the company8217;s overall sales,and up sharply from 6.7 percent a year ago,according to statistics provided by CCB International Securities. CCB had forecast Geely8217;s first-half net profit at 962 million yuan.

For many of Geely8217;s local rivals,the headwinds are stronger. Warren Buffett-backed BYD has warned its January-June earnings 8211; due next week 8211; could halve due to weak car sales and continued losses in solar energy business,and FAW Car is expected to swing to as much as a 75 million yuan net loss in the first half from an 804 million yuan profit a year ago.

Geely8217;s parent,Zhejiang Geely,took over Volvo from Ford Motor Co in August 2010,marking China8217;s largest overseas auto acquisition and reflecting the country8217;s ambitions in the industry. In March,Zhejiang Geely signed a technology transfer deal with Volvo,giving it access to some of the Swedish brand8217;s technologies.

The companies are also exploring joint development of electric vehicle and small-car technology,including plug-in vehicles,Geely has said.