SAIC's 09 net profit up 900%, sales over 2 mln vehicles

Shanghai Automotive Industry Corporation (SAIC) has announced in its annual report (600104) that its net profit for 2009 jumped 900 percent from the previous year, reaching a record of 6.6 bln yuan ($966.3 mln). Its sales goal for this year is to exceed 3 million vehicles.

The annual report shows that SAIC's annual revenue has reached 139.6 bln yuan, up 31.87 percent year on year; net profit 659.2 mln yuan, up 904.61 percent; earnings per share was 1.006 yuan. The company plans to capitalize the capital reserve, 10 shares for every 3 shares, every 10 shares represents 0.5 yuan (including tax).

In 2009, SAIC's annual sales volume reached 2.72 mln units, up 57.2 percent, becoming the first automaker whose annual sales has exceeded 2 mln units so far in China. Last year, the company's market share reached 19.9 percent, up 1.4 percent, and gained itself more advantages in the industry. FAW ranks second after SAIC with sales of 1.96 mln units; DFM (Dongfeng Motor) ranks third with sales of 60,000 units less than FAW.

In terms of the own brands, SAIC has come to the fore from behind. In 2009, the vehicle sales of its two brands Roewe and MG exceeded 90,000 units, up 153 percent, far outpacing the industry's average growth. The company said its own brand production has made profits, but did not disclose the specific profit figures.

The annual report has also revealed that from January to March this year, the company's vehicle sales exceeded 890,000 units, almost 300,000 sold every month, up more than 60 percent. In particular, the Tiguan SUV, launched in March, has received over 50,000 orders and most consumers have to wait 3 months to pick the car.

Earlier, Hu Maoyuan, chairman of SAIC, said its goal for this year is to exceed 3 mln vehicles. In 2009, the company was already the world's eighth largest carmaker. If its sales break 3 mln units, the top Chinese automaker may make the world's top 6 list.