Auto maker's earnings soar
Updated: 2006-08-24 07:01
By Lillian Liu(HK Edition)
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The mainland's largest automobile exporter, Great Wall Motor Co Ltd, said yesterday its net profit had vaulted over 80 per cent in the first half, driven by "outstanding export performance" and strong demand in home market.
The North China's leading pick-up truck maker recorded a net profit of 367 million yuan, a great leap forward compared with 203 million yuan for the second half in 2005.
Exports played a major role in the company's income jump, which exceeded 10,000 vehicles, up by 224 per cent year-on-year.
Great Wall Motor, a specialist in manufacturing vehicles that could withstand rough roads and inclement weather, said its turnover had jumped by 58 per cent during the period, from 1.5 billion yuan to 2.5 billion yuan.
The automobile company, one of the country's biggest private car producer that exports mainly to the Middle East and former Soviet Union regions with self-owned brand name, plans to sell a total of 70,000 vehicles this year, 30,000 of which will be for exports.
The company currently sells some one-third of its products to over 80 overseas markets and hopes to expand export volume to 40 per cent during the second half.
"We expect exports will account for 50 per cent of our total sales by 2008," said chairman Wei Jianjun at a press conference yesterday.
"We must strive towards our target. And the company must have good export performance to survive market competition," he said.
Based in Baoding in North China's Hebei Province, with 8,000 workforce, the company sold 25,570 vehicles in the domestic market, contributing 1.7 billion yuan to its first half turnover and representing a 22.5 per cent year-on-year increase.
Despite the central government's tightening measures aimed at slowing down the country's overheated economy, Wei said he was confident the company would achieve a similar result in the second half.
"In the first half of 2006, the business environment of the automobile industry was affected by a series of measures promulgated by the Chinese Government," said Wei.
"However, driven by the continued rapid growth of the country's economy, the demand of the home market remained robust and the outlook for development was good. And the net profit growth would maintain the same level in the second half of this year."
Buoyed by increasing demand from buyers in Russia, which constituted 32 per cent of the motor maker's exports last year, the company has established Russia Great Wall Co Ltd in Moscow in the first half, to facilitate export business in the local market.
Great Wall Motor said its US$70-million investment plan in Russia would be implemented phase by phase upon obtaining Russian authorities' approval.
(HK Edition 08/24/2006 page3)