Guangzhou Automobile Group Co., Ltd. Provides Earnings Guidance for the Year Ended December 31, 2016
January 25, 2017 at 05:51 am EST
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Guangzhou Automobile Group Co., Ltd. provided earnings guidance for the year ended December 31, 2016. Based on the preliminary estimations of the financial department, the net profit realised and attributable to shareholders of the company for the year ended 31 December 2016 is expected to increase by 30% to 55%, compared with the same period last year. Main reason for the estimated increase of results during the period: The sales of the star vehicle models of the self-developed brand, Guangzhou Automobile Group Motor Co. Ltd., has realised a substantial growth with an increase in annual sales of 90.66% compared with the same period last year; The annual sales of new SUV model for Jeep launched by GAC Fiat Chrysler Automobiles Co., Ltd. has realised a substantial increase of 270.84% compared with the same period last year, turning loss into profit; Main joint ventures Guangqi Honda Automobile Co., Ltd. and GAC Toyota Motor Co. Ltd. have maintained steady growth with an increase in annual sales of 10.12% and 4.64% respectively compared with the same period last year; and The growth in sales realised by self-developed brand and main joint ventures has enhanced the effect of coordination between respective whole vehicle enterprises and different segments of the Company, including components and parts, commercial services and financial segments, resulting in a larger growth of the overall operating results compared with the same period last year.
Guangzhou Automobile Group Company Limited is an investment holding company principally engaged in vehicles and related businesses. The Company operates through five segments. The Research and Development (R&D) segment is engaged in the development of new products and new technology, as well as the implementation of R&D projects. The Manufacture segment is engaged in the manufacture of passenger vehicles and motorcycles. The Commercial Services segment is engaged in vehicle sales, logistics, international trading, second-hand vehicles, disassembling, resources recycling, as well as the provision of supporting services. The Parts and Components segment provides engines, gearboxes, car seats, auto lamps, automation accessories, redirectors, shock absorbers and accessories. The Financial segment provides financial investment, insurance, insurance broker, financial lease, automobile credit and other related services.