Shanghai Auto net profit up 358% in H1

Shanghai. August 22 (Gasgoo.com) – Shanghai Auto, a Shanghai listed automobile company yesterday posted a net profit surge of 358.1 percent in the first half year, according to the company's H1 report today.

The listed company earned 2.72 billion yuan ($358 million) in net profit in the first six months, up from 592.82 million yuan in the same period last year. Its earnings per share jumped to 0.415 yuan from 0.181 yuan over the period, according to its H1 report.

The huge increase of net profits is driven by buoyant sales and a major asset injection from its parent company, Shanghai Automotive Industry Corporation, the company said.

Shanghai Auto's parent Shanghai Automotive Industry Corporation which holds 83.83 percent of the listed company injected $2.4 billion last December into its listed company, including two joint ventures with Volkswagen and General Motors.

Shanghai Automobile has acquired 100 percent of Shanghai Shenlian Special Purchase Vehicle Co, 50 percent of SAIC Iveco Commercial Vehicle Investment Co, 50 percent of Shanghai Huizhong Automotive Manufacturing Co and 2.41 percent of Ssangyong Motors in South Korea during this period.

The company's H1 sales revenue, including that from its South Korean unit Ssangyong Motors, soared by 2,202.4 percent to 51.07 billion yuan ($6.72 billion). It also sold 840,000 vehicles in the first six month, up from 682,000 units last year.

Auto experts are optimistic about Shanghai Automotive's full-year performance. The auto group's home-made automobiles are expected to grow to 8.5 million units in 2007 from 7.22 million units last year.

Also in the first half year, Shanghai Automotive's operating profit jumped to 3.44 billion yuan ($452.6 million) from 595.36 million yuan ($78.34 million) last year.