Hotai Motor posts earnings increase for first six months

The nation's largest car dealer, Hotai Motor Co (和泰汽車), yesterday posted an increase in earnings during the first six months as a result of its new automobile models.

The company posted a 7.6 percent rise in net income at NT$ 2.01 billion (US$610 million) for the January to June period, with earnings per share of NT$3.69, it said yesterday.

Its sales were down 6.8 percent during the same period to NT$38.77 billion.

MARKET SHARE

Despite automobile sales heading south in the last two years in this country, Hotai is winning market share.

Government figures showed that nationwide sales of new vehicles reached only 204,188 units during the first seven months of the year, a decline of 16.2 percent from last year.

Hotai sales dropped 7.6 percent from last year, but its market share grew from 30 percent to 31.6 percent, the statement said.

MORE MODELS

The company, which celebrates its 60th anniversary this year, will continue to launch new models and revamped versions of its Toyota and Lexus vehicles to drive business growth.

Meanwhile, China Motor Corp (中華汽車), the nation's second-largest automaker, saw its shares rise NT$0.20 to NT$29.20 yesterday, with sentiment bolstered by a board decision to buy back 10 million shares at between NT$28 and NT$32 per share over the next two months.

The repurchased shares accounted for 0.73 percent of the company's total shares, China Motor said in a filing to the Taiwan Stock Exchange on Wednesday.

The company said it expects to spend a maximum of NT$300 million for the repurchase of shares and did not believe the cost, which comprises 2.09 percent of its asset flows, would negatively impact on its financial situation.

China Motor said in the statement that the purpose of the repurchasing plan was to transfer those stocks to its employees over the next three years.