Brilliance China Automotive First-Half Profit Rose 25%
August 21 2020 - 6:36AM
Dow Jones News
By Yifan Wang
Brilliance China Automotive Holdings said its net profit for the
first half rose 25%, mainly on the back of a higher profit
contribution from its joint venture with the German car maker
Bayerische Motoren Werke AG.
The car dealer posted a net profit of 4.05 billion yuan
(US$585.6 million) in the period.
The profit growth came even as revenue fell 24% from a year
earlier to CNY1.45 billion, dragged by falling sales of minibuses
and multipurpose vehicles.
However, profit from BMW Brilliance Automotive rose 23% to
CNY4.38 billion, thanks to robust demand for luxury vehicles, the
company said.
Earnings growth was further supported by lower tax expenses and
higher interest income.
Looking ahead, Brilliance China said it is "cautiously
confident" about the outlook for the rest of the year, given the
quick sales rebound of its BMW joint venture after a dip in sales
early in the coronavirus pandemic.
"With incoming orders gaining momentum and assuming the current
positive trend continues, we see a chance for sales to continue to
return to a normal level," it said.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
August 21, 2020 06:21 ET (10:21 GMT)
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