New plant drives Denway net higher
Denway Motors, Honda Motor's mainland partner, said profit rose 18.6 per cent last year after a new plant boosted output of Accord sedans.
Net income jumped to HK$2.26 billion from HK$1.91 billion a year earlier, in line with the estimate by a Bloomberg survey of 13 analysts.
Sales fell 5 per cent to HK$807.6 million.
The main profit driver was its 50 per cent-owned venture with Japan's Honda, which contributed HK$2.09 billion, a 10 per cent rise from 2005.
Denway, a unit of the mainland's sixth-largest carmaker Guangzhou Automobile Group, sold 260,000 cars last year, up 12.7 per cent.
It made about 262,000 units last year, an increase of 13 per cent, after a production line capable of making 120,000 vehicles a year came on stream in the fourth quarter.
'The performance of the group's motor vehicle trading business last year was slightly below expectation given the intense competition in the market,' the company said.
About 7.2 million cars were sold in the mainland last year, up 25 per cent, while output grew 27 per cent to about 7.3 million units.
Denway plans to boost both car production and sales volume to 310,000 units this year, an increase of more than 19 per cent.