The first-half profits of Geely Auto are terrible. This might therefore seem a bad time for the business to turbocharge a global buying spree. Instead, the strategy, mirroring that of unlisted parent Zhejiang Geely should benefit the most international of China’s carmaking groups.Zhejiang Geely owns big stakes in Volvo Cars of Sweden, the UK’s Lotus Cars and Proton of Malaysia. It also has investments in Germany’s Mercedes-Benz. The Geely group is building a web of relationships with plenty of potential as the car industry electrifies.

Geely Auto’s first-half net profit fell 35 per cent to Rmb1.6bn ($236mn), despite a 29 per cent increase in revenue. Chinese lockdowns and a global chip shortage disrupted production. Vehicle sales fell 9 per cent, missing the company’s target.

Shares have dropped more than a third in the past year. Operating margins have more than halved to just 1.8 per cent last year. Yet the shares trade at a steep 20 times forward earnings, more than four times global peer Volkswagen