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Vehicle glass maker Fuyao’s US operations see profits up amid industry decline

Post Time:Aug 30,2019Classify:Company NewsView:1793

The biggest vehicle glass manufacturer in China, Fuyao Glass, achieved a more balanced business structure in the first half of this year, with overseas units performing better.

In its interim earnings report released on Wednesday, the company said that Fuyao Glass America and its US subsidiaries realized revenue of 1.9 billion yuan ($265.6 million), up 13.7 percent year-on-year, while net profits rose 16.4 percent to 148 million yuan.

Overseas business accounted for 48.26 percent of revenue during the first half, up from 38.65 percent a year earlier, the financial statement showed. "The market structure has become more balanced," said Fuyao in the document.

Total revenue was up 2 percent to 10.29 billion yuan, but total net profits were down 19.43 percent to 1.5 billion yuan. 

Fuyao attributed the profit decline to slow growth of the global economy, as well as downward pressure on the domestic economy and the vehicle industry, which contracted in 2018 for the first time in decades.

The company's shares jumped both in the Chinese mainland and the Hong Kong stock markets after the recent release of the documentary American Factory, which is produced by Barack and Michelle Obama.

Within four days of the documentary's Netflix debut on August 22, Fuyao's A-shares and Hong Kong shares rose by more than 7 percent.

Investment bank China International Capital Corp on Thursday set a price target for Fuyao shares at 27 yuan in the A-share market and HK$30 in Hong Kong. The bank forecast that Fuyao would outperform its sector this year. 

American Factory documents Fuyao's boss Cao Dewang providing more than 2,000 jobs in the US rust-belt state of Ohio in 2014, by investing in a factory that was previously closed by US carmaker General Motors. 

The Chinese boss brought the factory back to life and helped reduce local unemployment.

Source: http://www.globaltimes.cn/content/Author: shangyi

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