China Great Wall Motor Co Ltd said that first-half net profits surged 81 percent on high sales of pickup trucks. The company also announced it will delay construction of a manufacturing facility in Russia.

Net profits rose to 367 million yuan (US$45.8 million) for the first six months of this year, up from 202 million yuan a year earlier.

The profit increase was fueled by a year-on-year 61.3 percent boost in sales of pickup trucks globally. More than 24,591 units were sold, accounting for 63 percent of the company's total sales of 38,509 vehicles during the first half of this year.

Sales revenue also rose 57.7 percent to 2.52 billion yuan despite higher excise taxes on gas-guzzling pickups.

China's demand for pickups will expand 10 to 15 percent annually for the next five years, boosted by massive construction projects.

The company's profit margin dropped 1 percentage point to 26 percent over the first half of the year, mainly due to an increased excise tax on vehicles with engine larger than four-liters.

Great Wall has accelerated its expansion of exports as domestic market competition intensifies.

The company aims to export more than 30,000 units this year, up from 18,000 last year.

The company has postponed plans to set up a manufacturing facility in Russia, one of its largest export destinations due to problems getting approval for the project. The wholly owned plant, which was expected to turn out 20,000 units annually, was scheduled to start construction this October.

Source:佚名