Shanghai Auto net rises

PUBLISHED : Friday, 30 March, 2007, 12:00am
UPDATED : Friday, 30 March, 2007, 12:00am

Shanghai Automotive, a mainland-listed unit of the company's largest carmaker, said net profit rose 29 per cent last year as sales more than quadrupled.

Net income rose to 1.42 billion yuan or 22 fen per share, fully diluted, from 1.11 billion yuan or 34 fen per share a year earlier, the carmaker said in a statement to the Shanghai Stock Exchange.

Sales rose 377 per cent to 30.5 billion yuan.

Shanghai Automotive in December bought assets worth 19.1 billion yuan from its parent, Shanghai Automotive Industry Corp, including stakes in ventures with General Motors and Volkswagen.

Shanghai Automotive, which did not say how many cars it had sold last year, plans to sell 1.5 million cars this year, as it forecast that eight million cars would be sold in the country this year, an increase of 10 per cent.

The company predicted tough times ahead amid increasing raw material costs and oil prices.

'The industry continues to experience overcapacity and price competition is very keen,' it said.

Shanghai Automotive cut the prices of two models it made with partner General Motors between 6 per cent and 10 per cent in January to increase its share of the mid-range car market. The Chevrolet Lova and Aveo are being sold for 5,000 to 9,900 yuan less than their previous prices of 80,000 to 100,000 yuan.



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