Geely Automobile Holdings, China's largest domestic carmaker, warned its net profit in the first half dropped about 40 percent from 6.7 billion yuan ($974 million), reflecting a sharp decline in sales during the period.
The company issued an alert about the profit slump in filings on the Stock Exchange of Hong Kong, where it is listed.
Geely attributed the profit plunge to a "greater-than-expected decrease" in sales and efforts to reduce dealership inventories in the first six months.
In the first half, Geely's deliveries fell 15 percent to 651,680. In June, the company's sales tumbled 29 percent to 90,875.
Geely said it has cut its annual sales target for 2019 by 10 percent to 1.36 million, citing the extended slump and uncertainties facing the overall passenger vehicle market in China.
Geely, based in the east China city of Hangzhou, builds and markets light vehicles for its mass-market Geely brand as well as the Lynk & CO premium brand in which Volvo Car Corp. holds 30 percent interest.
Geely's parent Zhejiang Geely Holding Group Co. owns Volvo.
