China's Biggest Private Automaker Reports Fat Profit

BEIJING, Apr. 20 -- Geely Automobile Holdings (HKSE: 0175), China's biggest private automaker, said yesterday that its net profit jumped almost three times last year thanks to increased stakes in its operating units in China.

    Geely Automobile published its annual statement on April 16. The report said its net income rose 191 percent, reaching 879 million yuan (HK$996 million) in 2008.

    The majority of the growth came from the acquisition of five of its associated companies.

    In June 2008, Geely Automobile spent a total sum of 1.55 billion yuan (HK$1.611 billion) to buy 44.19 percent of its five associated companies. The share holdings of each associated company increased 91 percent.

    The five companies are the Zhejiang Geely Automobile Co., Ltd.; Shanghai Maple Automobile Co., Ltd.; Zhejiang Diamond Motors Limited; Zhejiang Landrover Automobile Co., Ltd; and Hunan Geely Automobile Co., Ltd.

    Since July 2008, Geely Automobile has combined the financial statements of these operating units into a consolidated report. The report states that the gross profit of these five associated companies accounted for 1.06 billion yuan in 2008, a year-on-year increase of 47 percent.

    (Source: China.org.cn)