Foton Motor: Gross profit growth driven by gross margin recovery


The results of the mid-term report were satisfactory, and the recovery of profitability led to a net profit increase of 30%. In the first half of 2009, the company's operating income reached 19.6 billion yuan, a year-on-year increase of 6%, consolidated gross profit reached 10.5%, 2.2 percentage points higher than the same period, and profit recovery enabled the company's net profit to reach 450 million yuan, a substantial increase of 32% year-on-year. In terms of income and profit structure, both heavy truck revenue and profits have fallen sharply, and light trucks have become the largest sub-sector of revenue and profit. During the reporting period, the Company's light truck business revenue was 10.8 billion, up 47% year-on-year; the medium- and heavy-duty card business revenue was 6.6 billion, down 28% year-on-year; the light passenger business revenue was 1 billion yuan, a year-on-year increase of 88%, becoming a new bright spot; The revenue was 370 million yuan, a year-on-year decrease of 4.4%, and the decrease in income was less than the industry level.
In the first half of the year, sales increased by 15% year-on-year, light trucks increased significantly, heavy trucks fell but slightly outperformed the industry, and light passengers and new energy buses became bright spots. In the first half of the year, the company sold 240,000 light trucks, a year-on-year increase of 19%, which is better than the industry's 14% growth rate. The sales volume of micro-cards in light trucks has exceeded 10,000 vehicles per month since April, and the growth rate is good. The company's strategy for entering this field is relatively successful.
Heavy trucks sold 39,000 vehicles in the first half of the year, which was down 17% year-on-year due to the overall industry downturn, but slightly better than the industry's overall 20% decline. The light passengers performed well, with a year-on-year increase of 30% over the industry, and the market share rose to 20%, ranking second. Sales of 1,155 buses in large and medium-sized buses dropped by 10% year-on-year, but the company’s new energy hybrid buses had already been put on the market earlier in May and had larger orders in Beijing and Jinan, and subsequent orders may continue to bring surprises.
The gross profit of the sub-sector increased significantly, and the three expense rates rose slightly. During the reporting period, the most important change in the company was that in addition to the big customer business, the gross profit of the other three sub-businesses increased greatly. The gross profit of the light truck business reached 11%, a year-on-year increase of 2%, and gross profit of trucks was 9%, an increase of 1.5% year-on-year. The company's production and sales scale of light trucks ranks first in the industry, and its profitability is highly sensitive to the increase in gross profit. This has been the main reason for the significant increase in net profit of the company in the first half of the year. During the reporting period, the company’s interim expense ratio reached 6.8%, up by 1 percentage point year-on-year.

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