Huayu Automotive's net profit for the first half of 2011 increased by more than 20% year-on-year

Huayu Automotive (600741.SH) released semi-annual report on the evening of August 25, showing that the company achieved a net profit of 1.553 billion yuan in the first half of the year, an increase of 22.83% year-on-year.

The semi-annual report shows that the company’s operating income for the first half of the year was 26 billion yuan, up 24.95% year-on-year. The basic earnings per share was 0.601 yuan, compared with 0.49 yuan in the same period last year.

Huayu Automobile stated that in the first half of the year, due to factors such as the deceleration of the macro economy and the withdrawal of stimulus policies, compared with the previous two years, the overall growth of the domestic passenger car market slowed down significantly, but the company seized more growth in the passenger car market in Europe and the United States. The opportunity to increase the market share of large and market companies meets the supply requirements of the entire vehicle customer by increasing the corresponding speed and adjusting the product mix.

Huayu Automotive's main business is automotive interior and exterior trim and functional assembly production. The main customers include Shanghai Volkswagen, Shanghai General Motors, SAIC-GM-Wuling and other European and American car companies. In the first half of this year, SAIC Motor sold 2.040 million vehicles, an increase of 12.99% year-on-year.

Among the SAIC Group's overall listing plans that have attracted much attention from the market, Shanghai Motors (600104.SH) intends to issue shares to SAIC Motor to purchase the 1.552 billion shares of Huayu Automobile, which is currently owned by the latter. . After the completion of the acquisition, SAIC Motor will hold 60.10% of the equity interest in Huayu Automobile and become the controlling shareholder of Huayu Automobile.