Shanghai, March 23 (Gasgoo.com) Brilliance China Automotive Holdings (1114.HK), a Chinese partner of BMW, said on Friday that it expected to record a substantial loss for 2009 due to a one-time loss on the sale of the Zhonghua sedan business, media reported.
The company said the loss was due to certain write-off and operational losses from the Zhonghua sedan business because the sales volume of Zhonghua sedans did not reach the break-even level due to a change in product mix, according its filing with the Hong Kong Stock Exchange.
Brilliance China said in January that it would buy the remaining 1% stake it does not own in each of its subsidiaries, Shenyang Brilliance XinJinBei Automobile Co Ltd and Shenyang JinBei Automotive Industry Holdings, for a total of 30 million yuan ($4.38 mln), to increase its stake in BMW Brillaince to 50%.
As a listed subsidiary of Brilliance Auto based in the northeastern city of Shenyang, Brilliance China focuses on the manufacture and sale of minibuses and auto components. Its joint venture with BMW, BMW Brilliance, makes and sells BMW sedans.
In 2009, BMW sold a record 90,536 BMW-brand and Mini-brand cars in mainland China, 38% more than the 65,822 it sold in 2008. The company's net profit was 80.93 million yuan in 2008.
