China Auto Electronics' Q3 profit up 45.4%

CHINA Auto Electronics Group reported a 45.4 per cent jump in net profit for the third quarter ended Sept 30 to 71.3 million yuan (S$14.7 million).

Revenue grew 29.8 per cent to 820 million yuan as growth in China operations outpaced the decline in US operations.

The increase in sales for China operations was mainly due to increase in sales of wire harnesses and connector products while the decrease in sales for US operations was caused by a delay in some projects.

"The PRC automotive industry in 2016 continues to show stable growth which would bode well for the group's performance," China Auto said on Monday.

"The group will continue to streamline its operations, and its effort to increase sales and expansion to overseas markets as well as impose stringent cost controls," it added.

The release of its third-quarter results on Monday followed a second extension application by the group, which was granted a one-day extension of up to Nov 28 from the Singapore Exchange (SGX). The group had earlier sought an extension of up to Nov 25 to announce its results.

China Auto explained that it had applied for a second extension mainly because of scheduling conflicts for the Board meeting to approve the third-quarter results. Its CEO Zhang Ying was out-stationed till Nov 27, while the executive chairman Zhang Jingtang is out-stationed till on or around Dec 6. In addition, the Audit Committee also requires more time to consider the Q3 2016 results before tabling it for consideration by the Board.

The SGX granted the additional one-day extension to China Auto on condition that the group disclose the extension and the reasons for seeking the extension of time. The group was also required to submit a written confirmation that the extension of time does not contravene any laws and regulations governing the company, and that it is not aware of any information that will have a material bearing on investors' decision which has yet to be announced.