Auto glass maker Fuyao Glass Industry Group Co. Ltd. (3606.HK; 600660.SH) announced on Tuesday that its revenue rose 2.44% year-on-year to 21.97 billion yuan ($3.26 billion) in the first half of the year, while its net profit fell 17.37% to 3.97 billion yuan. Its pre-tax profit declined 19.95% to 4.64 billion yuan.
The company’s revenue from automotive glass increased 3.75% to 20.27 billion yuan during the period, while the segment’s gross margin rose 1.49 percentage points to 32.02%. The company’s overall gross margin increased 1.74 percentage points to 38.33%. Fuyao cited industry data saying China’s automobile production and sales fell 4% and 4.1%, respectively, in the first half of the year.
The company attributed the profit decline mainly to foreign-exchange movements. It recorded an exchange loss of 803 million yuan during the period, compared with an exchange gain of 602 million yuan a year earlier. Excluding the impact of those currency movements, its first-half pre-tax profit would have increased 4.78% year-on-year.
Fuyao’s shares opened lower on Wednesday before reversing course, and were up 3.08% at HK$58.50 at the midday break.
By Lee Shih Ta
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