Beiqi Foton reports profits in H1

Increased vehicle sales have jumpstarted Beiqi Foton Motor Co. Ltd.<600166>.

Beiqi Foton posted a net profit of RMB 237.37 million in the first half. This bodes well compared with the pervious year's loss of RMB 45.65 million.

Gains have been attributed to increased vehicle sales, the company said. Beiqi Foton sold 210,810 vehicles in the six months, a 16.5% year-on-year increase. Sales of the vehicles include 169,997 light trucks, 32,301 heavy and medium-sized trucks, and 943 buses.

Xinhua reported also that the company's operating revenues increased by 41.4% to RMB 14.25 billion. This accounts for 70.9% of Beiqi Foton's revenue target of RMB 20.1 billion set for 2007.

Operating costs also increased 38.6% to RMB 13.01 billion.

The report also showed that earnings per shares was RMB 0.293 for the first half, this was compared with the loss per share of RMB 0.068 a year ago.

Last November, Beiqi Foton announced plans to issue 297 million new A shares to DaimlerChrysler AG at RMB 2.75 per share through a private placement. This would make the DaimlerChrysler AG the company's second-largest shareholder with a 24% stake.

The proposal, however, is still awaiting approval from authorities.

Bejqi Foton's assets were at RMB 7.44 billion at end June, an increase from end-2006's RMB 6.41 billion.

Beiqi Foton Motor Co. Ltd. is a manufacturer of automobiles, motors and related parts. The company is located in Beijng.