Xiali Chines Car Maker Posts Loss

SHANGHAI -Jane Lanhee Lee writing for Dow Jones reported that China's Tianjin FAW Xiali Automobile Co. said Sunday that it posted a loss of 790.37 million yuan ($1=CNY8.28) for 2002, versus a loss of CNY95.49 million in 2001.

The loss was due to Xiali cutting the retail price of its cars to adjust to China's competitive car market, it said.

But Xiali also announced Sunday that it posted a net profit of CNY55.6 million for the first quarter this year thanks to cost-cutting efforts.

Its core revenue last year rose to CNY4.15 billion from CNY3.41 billion in 2001.

It produced 89,920 cars last year, up 76% on year, and sold 87,027 cars last year, up 69.9% on year, giving it a 8.5% market share of the passenger car market, it said.

In the first three months it produced 29,846 cars, up 94.6% on year, and sold 27,523 cars, up 87.8% on year.

The Shenzhen listed company has a 50-50 joint venture with Japan's Toyota Motor Corp. , called Tianjin Toyota Motor Co. Its net profit in the first quarter was CNY42.2 million, according to FAW Xiali's report.