Shanghai-listed Pang Da Automobile Trade, the Chinese auto distributor led by billionaire Pang Qinghua that last week wrapped up an agreement to buy part of troubled Saab Automobile, reported an increase in net profit for third quarter today.
Net income for the three months to September rose by 92% to 299 million yuan, on sales that increased by 12% to 14 billion yuan. A company statement didn’t give a reason for the increase. Among the brands Pang Da distributes in China is Subaru.
Nine-month sales increased by 6% to 40.8 billion yuan, while profit fell 11% to 703 million yuan amid slower industry sales, the company said.
Worries about the industry outlook have helped push Pang Da’s stock down by 45.5% since it listed at the Shanghai Stock Exchange in April.
Pang Da last week said it would team up with another Chinese company, Zhejiang Lotus Automobile, to buy Saab for about $14o million. Pang Da will hold a maximum of 40% of the venture, according to a company statement.
Other Chinese auto industry businesses to buy a financially strapped foreign brand include billionaire Li Shufu’s Geely, which purchased Volvo from Ford last year.
China’s domestic makers face tough competition against joint venture partners of GM, Ford and Toyota in China.
Pang ranked no.61 on the 2011 Forbes China Rich List with wealth of $1.5 billion.
-- with Maggie Chen