GAC Group Profit Decreases 17.76% Frist Half Year

Exploits of GAC is still not optimize enough after series development. GAC Group has announced its semi-annual report of 2013 on August 29 night. According to the report, net profit attributable to the parent company is 1.22 billion Yuan, which has decreased 17.76% during report period.

GAC said the main reason for the poor performance is because of the business beginning of new joint venture, and potential capacity has not released enough at this moment. It still needs time to take effectiveness.

According to semi-annual report of GAC, its revenue is 8.25 billion Yuan, which has increased 50.44% over last year. It is because Trumpchi GS5 sales increases stably.

Meanwhile, joint venture revenue is up to 81.77 billion Yuan. It has 2.95 billion Yuan more than last year did, which has increased 3.74%. GAC believes it marks that main associates and joint venture sales has set stably. Market performance has recovered to the same level over last year.

However, the investment return of GAC into associates and joint ventures is 1.84 billion Yuan according to GAC report, which has decreased 303 million Yuan.

Although poor performance, GAC still has confident for its future supply chain resource integration. The company announces that its finance and auto insurance business has developed, and supply chain resource integration is operated well.