AVIC II reports increased sales income last year

Home>>Business

Last updated at: (Beijing Time) Monday, January 12, 2004

AVIC II reports increased sales income last year

DISCUSSION

CHINESE

SEND TO FRIEND

China Aviation Industry Corp II (AVIC II), the parent company of Hong Kong-listed mini-car and helicopter maker AviChina Industry & Technology Co Ltd, said its sales income grew by a year-on-year 11.4 per cent to 23 billion yuan (US$2.8 billion) last year.

The company did not disclose the figures for its net profit, but said it handed in 1.1 billion yuan (US$132 million) worth of taxes to the State.

Company President Zhang Hongbiao said all financial indices of his company are the best in its history.

Analysts said AVIC II's better performance will further increase investor confidence about the business outlook of AviChina, which raised HK$1.9 billion (US$ 244.74 million) from an initial public offering on the Hong Kong Stock Exchange last year.

"Cars and aircraft are both high-growth industries in China," said Zhang Xueying, a senior economist with the State Information Centre.

AVIC II is the largest mini-car maker in China, with a market share of more than 40 per cent.

It is also the only domestic mass producer of helicopters and regional jets in China.

Last year, the company's car business, which made up a majority of the total revenue, remained the largest source of income.

The company manufactured 321,000 cars and sold 323,000. It earned 14.7 billion yuan (US$1.8 billion) from sales, an increase of 24.7 per cent from the previous year.

It also earned about 2 billion yuan (US$240 million) from selling auto parts.

As China's economy continues to expand, AVIC II expects its aircraft business to drive further growth, Zhang Hongbiao said.

AVIC II has a 49 per cent regional jet joint venture with Brazilian aircraft manufacturer Embraer to assemble the Brazilian firm's jets in China.

Last month, the first ERJ145 jet manufactured by the joint venture made its maiden flight in Harbin of Northeast China's Heilongjiang Province, suggesting the 50-seat jet will soon enter the Chinese market.

Reliable sources said China Southern Airlines has agreed to buy six ERJ145s.

Officials with the General Administration of Civil Aviation of China said the central government's decision to develop the western part of the country and the success of Beijing's bid to host the 2008 Olympics will open opportunities for an expected boom in the regional aviation market.

China is expected to demand some 400 to 500 small aircraft in the coming 20 years, according to sources with AVIC II.

Zhang Hongbiao said AVIC II also bet on a huge demand for helicopters in his company's future growth.

Helicopters are used worldwide because they are easy to fly and land. At present, China has less than 80 helicopters for general use, which means, for every 1 million people, there are only 0.06 helicopters.

Questions?Comments? Click here

Vice-Premier urges reform of civil aviation sector

China mulls opening aviation market to private investors

Exploration rover "Spirit" lands safely on Mars ( 9 Messages)

Two major state banks to pilot joint-stock system ( 3 Messages)

China pondering its own "green card" system ( 16 Messages)

Roaring BMW: Was it "road rage" or an accident? ( 2 Messages)

Beijing's traffic no longer a headache by year 2008 ( 5 Messages)