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Shanghai Automotive Co Ltd yesterday reported its first-quarter net income almost tripled year-on-year, buoyed mainly by a strong domestic demand for car and auto parts.
The listed arm of Shanghai Automotive Industry Corp, China's leading carmaker, posted a net profit of 307.53 million yuan (US$37.05 million), or 0.122 yuan per share.
Revenue jumped 98.62 percent year-on-year to 1.687 billion yuan, the company said in its earnings report, adding it had decided to pay a dividend of 3.60 yuan for every 10 shares.
Besides controlling stakes in some local auto parts makers, the company holds a 20 percent stake in Shanghai General Motors and a 25 percent stake in Shanghai Volkswagen Automotive.
Analysts credited the sharp rise in net profits to strong growth in its auto parts and car manufacturing business and reduced costs.
Car sales in China jumped 56 percent to 1.126 million units in 2002, resulting in a strong demand for auto parts. Shanghai Automotive is a major parts supplier to Volkswagen and General Motors' joint ventures.
The company, 70 percent owned by Shanghai Automotive, said financial expenses for the first quarter fell to 1.403 million yuan, compared with 2.6 million yuan a year earlier.
Shanghai Automotive's A-shares hits the daily 10 percent cap yesterday, closing at 11.53 yuan.
(Shanghai Daily April 29, 2003)
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