BMW’s partner in China, Brilliance China Automotive, has reported a 52% year on year rise in first half profit due to an increased profit from the BMW Brilliance joint venture where sales boomed.
Profit was CNY2.03bn (HK$2.55bn) versus CNY1.33bn in H1 2012, the South China Morning Post (SCMP) reported, citing a statement filed with the Hong Kong stock exchange. Revenue fell 8.5% to CNY2.57bn after minibus sales fell 12.1%.
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Profit was boosted by a 60% increase in the BMW Brilliance contribution, up to CNY2.1bn in the first half of this year from CNY1.31bn a year earlier, the statement said.
Car sales by the JV rose 30.8% to 105,692 units in the first half with 5 series volume up 28.6% to 63,536 and the 3 series up 57.8% to 32,126 units.
A Shanghai-based analyst told the SCMP the profit growth in the joint venture was partly driven by the rise in the yuan against the euro during the period. This allowed the company to make foreign exchange gains.
“The strong profit growth will be sustainable in the second half as we see robust demand in car sales,” he said, adding the company was likely to benefit from foreign exchange gains in the second half.
Wu Xiaoan, chairman of Brilliance China, said in the statement that the company planned to launch a new China-only 5 series model plus an additional 3-series variant in the second half.
He also said he expected car sales to rise 30% in 2014, outperforming competitors.
