SAIC Motor (600104.SS), controlled by SAIC Group, reports today that its net profit in the first half of 2010 reached 5.871 billion Yuan, or $863 million, up 306% from the same period last year. Revenues increased 140% to 147.6 billion Yuan, including 51.7 billion Yuan from Shanghai GM.
Its subsidiaries and joint ventures sold a total of 1,775,600 new vehicles, 45% more than 2009 H1. The micro-van maker SGMW contributed most, delivering 680,000 units. Sales of Shanghai GM topped 480,000 units, Shanghai Volkswagen 450,000 units.
The report cites two main reasons for the strong performance. One is the restructuring of its joint ventures’ product lines, which improved profit margins. The other is that sales from the brands owned by SAIC alone–mainly MG and Roewe–doubled from a year ago, their net profit jumping 191.49%.
For the whole year, SAIC Motor aims to sell 3 million vehicles, compared with 2.7 million last year, when it posted an annual net profit of 6.59 billion Yuan.