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Brilliance Auto's net profit grows over 24% in 2011, thanks to increase in BMW sales

Carmen Lee From Gasgoo.com| April 01 , 2012 04:48 BJT

Gasgoo.com (Shanghai March 30) - Brilliance Automotive made a net profit of 1.89 billion yuan ($299.16m) last year, Economic Observer News reported today, quoting figures from the manufacturer's recently released annual performance review. The figure represents year-on-year growth of 24.5 percent.

As expected, the Brilliance BMW joint venture was crucial in contributing to the manufacturer's net profit growth. The JV alone contributed 1.72 billion yuan ($272.29m) in net profit. Brilliance BMW saw its sales increase dramatically in 2011, managing to sell a total of 108,189 vehicles, an increase of 53.5 percent from the previous year.

Meanwhile, the manufacturer's own brand sales were not nearly as astounding. 82,491 Shenyang branded buses were sold last year, falling 13.3 percent from 2010. The Shenyang Motors division attributed the sales fall to policies aimed at restricting vehicle purchases and the recent credit crisis. BAIC's Chenfa auto part division saw its earnings fall 73.3 percent last year, ending at 358 million yuan ($56.67m).

Brilliance's gross profit margin decreased from 13.7 percent in 2010 to 13.3 percent in 2011. The manufacturer explained that the fall was due to increased market pressure and price wars between competitors.

Expansion at Brilliance's second production site in Shenyang's Tiexi district is scheduled to be finished in the end of 2013, after which the site's production capability will increase by 200,000 units. The Brilliance factory in Shenyang's Dadong district is also expected to see its production capability rise from the current 100,000 units to 160,000 units next year. The increased capability will be used mainly for the manufacture of BMW-branded vehicles. Brilliance is also planning to begin manufacture of BMW engines in the country this month.

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