Industry News
Brilliance China returned to black in 2007
22nd April 2008
The Chinese car and minibus manufacturer and BMW JV partner Brilliance China Automotive Holdings’ 2007 consolidated net sales including its several assembly and component subsidiaries were RMB14,149.1 million (US$1,857.5 million), a 34.9% increase over 2006.
The improvement was primarily due to increased sales volume for Shenyang Automotive's Zhonghua cars and minibuses.
Cost of sales increased by 31.0% y/y to RMB13,049.1 million (US$1,713.1 million), again primarily due to unit sales growth, although the average unit cost for both the Zhonghua cars and minibuses decreased. The group’s overall gross profit margin improved from 5.0% in 2006 to 7.8% in 2007.
Subsidy income increased from RMB50.2million (US$6.3 million) in 2006 to RMB140.1 million (US$18.4 million), mainly due to a new Chinese government grant to a Brilliance subsidiary.
The group recorded net income of RMB86.1 million (US$11.3 million), compared with a loss of RMB385.1 million (US$48.4 million) in 2006. Mr. Wu Xiao An, Chairman, saidm ''I am pleased to report that the Group has achieved its goal of returning to profitability in 2007 after experiencing two years of losses attributable to equity holders of the company.”
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