China's SAIC Motor net profit surges 242% in 2007

Shanghai, March 27 (Gasgoo.com) SAIC Motor Corp Ltd., listed company of China's largest automaker Shanghai Automotive Industry Corp (SAIC), posted a net profit RMB 4.63 billion ($656,000) for the whole year of 2007, up 242% over the previous year.

In 2007, SAIC has sold a total of 1.69 million vehicles in the Chinese market, up 25.8% year on year, and 1.13 million of them were passenger vehicles, an increase of 24.3% from one year earlier. The number makes it the leading automaker in China in terms of sales.

Its two passenger car joint ventures with General Motors Corp and Volkswagen AG sold 500,308 and 456,424 vehicles respectively last year, while commercial vehicle ventures Saic-GM-Wuling and Saic-Iveco Hongyan each sold 520,000 and 24,000 vehicles. Sales of South Korea subsidiary Ssangyong Motor were 136,000 vehicles, up 13%.

Also by the end of last year the listed company had issued RMB 6.3 billion convertible debts, which provided fund support for improving R&D facilities and capabilities.

Due to increased auto sales and capital injection, the automaker's total revenue last year has reached RMB 104 billion ($14.8 B), a growth of 434% from one year earlier.

Earnings per share stood at RMB 0.708, up from RMB 0.355 a year earlier.

The company said it has set a sales target of 1.9 million units for 2008, with total revenues growing to RMB 119.1 billion. It predicts that China's total domestic auto demand will grow by 10% to 9.7 million units this year.