October 27 -- SAIC Motor Corporation (600104.SH) posted a 38.69 percent year-on-year increase in net profit for the first three quarters to 13.29 billion yuan on revenue growth of 22.71 percent to 281.28 billion yuan, reports Shanghai Securities News, citing a company filing.

Automobile sales incresaed 11.77 percent year-on-year to 2.98 million units during the same period due to product optimization.

SAIC plans to establish a joint venture with General Motors China. Of the registered capital of $49 million, SAIC will contribute $24.99 million in return for a 51 percent stake.

The joint venture will handle agent sales of automobiles under the Buick, Chevrolet, and Cadillac brands, as well as oversee automobile exports.

The establishment of the joint venture is for the purpose of consolidating the sales of Shanghai GM into the financial statements of SAIC.

GM China will purchase a one percent stake in Shanghai GM, reducing SAIC’s shareholding to 50 percent. Once the purchase is completed, SAIC will no longer be able to consolidate Shanghai GM into its financial statements.