BIZCHINA / From the Industry
Shanghai Auto Q1 profit surges fourfold on ventures
(Bloomberg)
Updated: 2007-04-28 14:05
Shanghai Automotive Co., China's largest carmaker, said first-quarter
profit more than quadrupled, after it bought stakes in ventures with
General Motors Corp. and Volkswagen AG from its parent.
Net income rose to 1.16 billion yuan ($150 million), or 0.18 yuan per
share, from a restated 245.6 million yuan, or 0.08 yuan per share, a year
earlier, the company said in a statement to the Shanghai Stock Exchange
today. Sales increased to 25.5 billion yuan from a restated 1.08 billion
yuan, based on Chinese accounting standards.
Shanghai Auto shifted its focus to car assembly from auto parts through a
19.1 billion yuan asset swap with its parent in December. The company
acquired stakes in ventures with General Motors Corp. and Volkswagen AG,
giving it direct access to the world's fastest-growing vehicle market.
SAIC Motor Corp. and Shanghai Auto plan to boost sales by more than 15
percent this year, beating the estimated industry average, according to
company President Chen Hong. The parent sold 1.34 million vehicles in
2006, surpassing China FAW Group Corp. to become China's largest
automaker.
The company's shares fell 2.4 percent to 14.16 yuan in Shanghai
yesterday. The stock has surged almost fourfold in the past 12 months.
GM's two joint ventures with Shanghai Auto sold 26 percent more vehicles,
or 272,911 units, in the first quarter, helped by its best-selling model
Excelle sedans, according to the China Association of Automobile
Manufacturers.
Sales Goal
GM expanded its market share in China to 13.9 percent in the first
quarter from 13.5 percent a year ago. The U.S. automaker plans to
introduce about 10 new or revamped models in China this year to help it
meet a 2007 sales target of "close to 1 million units" in the country.
Shanghai Auto's venture with Volkswagen, Europe's largest carmaker, sold
97,385 cars in the first three months, an increase of 56 percent from a
year earlier, according to the auto association's statistics. Volkswagen
aims to introduce as many as 14 new models in the country by 2009.
China's economy grew 10.7 percent last year, the fastest rate in 11
years, boosting auto sales. Vehicle sales may rise to 9 million by 2010,
according to the National Development and Reform Commission. Sales last
year were 7.22 million.
Sales of the company's first self-branded sedan, the Roewe 750, exceeded
7,000 units by April 20, according to Hu Maoyuan, chairman of Shanghai
Auto. The Roewe is based on design rights bought from the bankrupt
British automaker MG Rover Group Ltd.
SAIC Motor received 3.28 billion shares from Shanghai Auto in November in
exchange for stakes in 11 auto ventures, three parts-makers and an auto
finance company. Its stake in Shanghai Auto rose to 84 percent through
the deal. Shanghai Auto booked profits from the ventures in the last two
months of 2006.
(For more biz stories, please visit Industry Updates)
Learn Chinese, Learn Mandarin online
No comments:
Post a Comment