Beiqi Foton reports H1 net profit up 61.73%

Shanghai, August 26 (Gasgoo.com) In the first half of this year, Chinese truck maker Beiqi Foton Motor Co achieved sales revenue of 18.45 billion yuan ($2.7 billion), a rise of 29.46% year on year (y/y), and its net profit reached 342 million yuan, up 61.73 y/y, or 0.42 yuan per share, xinhuanet.com said today, citing the interim report released by the company.

Foton Motor said that plus the profit of 323 million yuan not divided at the beginning of the year, the total net profit as dividends reach 665 million yuan. The company is planning to add 1.8 yuan in cash to each 10 of the total 916,408,500 shares. Foton's revised net profit for the first half of last year was 211.23 million yuan, or 0.26 yuan per share.

Reuters said on July 24 that Beiqi Foton Motor expected a rise of 50% or more in net profit in the first half of the year, boosted by sales of high-end products and government subsidies. The estimate for the first half was based on unaudited figures. Listed Chinese companies are required to issue preliminary estimates if they expect earnings to rise or fall more than 50%.

Foton Motor and Daimler AG signed a letter of intent on August 7 to form a 50-50 truck-making joint venture. The chairman of the Chinese firm's parent company has said the two parties would finalize after the Beijing Olympics this month. Foton has also agreed to raise stake in a diesel engine JV with Cummins.