GAC’s net profit likely to exceed RMB 10 billion

Shanghai (Gasgoo)- GAC released its financial report for 2017 recently. According to the preliminary calculation of its financial department, the expected increment of net profit attributable to the shareholders of listed companies will range from RMB 3.45 billion to RMB 5.34 billion with an increase ranging from 55% to 85% on an annual basis. 

Excluding the non-recurring gains and losses, the increment of net profit attributable to the shareholders of listed companies will range from RMB 3.35 billion to RMB 4.57 billion with a year-on-year increase ranging from 55% to 75%. Totalling the net profit of 2016 and the 2017 increment, GAC Group's net profit are expected to range between RMB 9.74 billion and 11.63 billion.

The net profit attributable to the shareholders of listed companies in 2016 was RMB 6.28822 billion. Excluding the non-recurring gains and losses, the net profit attributable to the shareholders of listed companies was RMB 6.10379 billion. Earnings per share were RMB 0.98. 

The financial increment was mainly driven by the increase of the company's major businesses. Moreover, thanks to the development of new models, stable sales growth of JVs and fast development of downstream businesses, such as auto parts, trade business and insurance, GAC saw fast growth of the net profit attributable to listed companies in 2017. 

In accordance with the company's output and sales report, GAC delivered more than 2 million vehicles in 2017, increasing over 20% compared with 2016. GAC Motor, GAC's self-owned vehicle brand, saw fast sales growth of 36.7% on an annual basis to 508,600 units. As to JV brands, GAC Honda delivered 705,000 units. GAC Toyota sold 442,400 units. GMMC posted sales growth of 110% over the previous year, which is the largest sales growth rate among the company's subsidiaries.