SINGAPORE (Nov 29): China Auto Electronics reported a 45.4% jump in 3Q16 earnings to RMB71.3 million ($14.7 million) on higher sales and higher other income.
Revenue for the quarter also rose 29.8% to RMB820 million. This was driven mainly by higher revenue from its China operations, due to the increase in sales of wire harnesses and connector products which offset the lower sales from US operations due to delays in projects.
Other income in 3Q16 surged to RMB38 million from RMB1.1 million, mainly due to subsidy income amortised during the period.
R&D expenses rose 80.9% to RMB38.2 million, driven by costs incurred for the development of new projects after securing various sales projects with new and existing customers.
In its outlook, China Auto Electronics notes that China’s automotive industry continues to show stable growth, which bodes well for the company’s performance.
The company says it will continue to streamline operations, increase sales and expand to overseas markets while implementing stringent cost controls.
Barring any unforeseen circumstance, the company remains cautiously optimistic of its performance in 2016.
Shares of China Auto Electronics closed flat at 16 cents on Monday.
