2012 First Half Interim Results Announced by Guangzhou Auto Group

Recently, Guangzhou Auto Manufacturing Group has declared its interim outcomes of the company that has been achieved during the 1st half of the 2012 financial year. The firm’s interim report clearly reveals that the overall sales profits of the auto firm amounted to nearly RMB 5,482 million, which is clearly an increase of almost 5.67 percent as compared to the results that were obtained during the same period last fiscal year.

On the other hand, the company and its recent joint-ventures, and allied firms have been able to realize total profits of roughly RMB 78,816 million, which is an improvement of roughly RMB 9,987 million, or 14.51 percent as compared to the profits that were realized during the same phase last year.

The net earnings attributable to the company’s equity holders has amounted to around RMB 1,482 million, and profit per share was recorded to stand at RMB 0.24. The firm’s Board of Directors suggested a return of an interim bonus of around RMB 0.07/share, which includes excise duties, for the fiscal year concluded on June 30th 2012.

After experiencing rapid growth for 2 consecutive years, China’s auto manufacturing and sales have now recorded a very high consolidation period in the past 2 years. Depending on the deceleration in local macroeconomic expansion and auto purchase limitation in certain metropolitan cities during the 1st half of 2012, the overall sales of the local auto market registered a substantial reduction as compared to the previous year’s stats.

As per the recent stats that are released from the Chinese Association of Auto Manufacturing Companies, the construction and sales of vehicles in the 2012 1 st half were nearly 9,529,100 models and 9,598,100 models respectively, signifying an increase of almost 4.1 percent and 2.9 percent respectively, in comparison to the earlier fiscal year’s figures, and transforming to a reasonable growth in the overall auto construction and sales.

The making and sales of motorcycles were recorded to stand at around 11,629,100 models and 11,738,100 models respectively, indicating a decline of nearly 11.41 percent and 10.82 percent respectively, as compared to last year’s stats, and attaining their lowest point in the past 6 years. In spite of unfavourable influences of the deceleration in both auto industry and macroeconomic growth, the firm has managed to accomplish sales improvement in the slow market conditions, with the help of very effective inventory adjustment, market development, cost decline and marketing.

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