Sinotruk Jinan Truck Co., Ltd. (Jinan Truck), a Shenzhen-listed company in which Sinotruk (Hong Kong) (HKG:3808) has a 63.78% interest, expects its unaudited net profit attributable to the equity holders for the 3 months ended 31 March 2012, which was prepared in accordance with the PRC Accounting Standards for Business Enterprises and Relevant Regulations, to decrease by 50% or more compared with the unaudited net profit of RMB93.48 million for the same period in 2011, Sinotruk (Hong Kong) announced.

The change is mainly attributable to (i) the macro-economic control policy and the insufficient measures implemented by the PRC government to curb the inflation in the PRC leading to the slow down in the development of the heavy duty truck industry and the decrease in the sales of Jinan Truck as compared with the same period in 2011; (ii) the increase in the loans of Jinan Truck and the relevant loan interest rates as compared with the same period in 2011 leading to the increase in the finance costs of Jinan Truck; (iii) the increased effort made by Jinan Truck to promote the sales which has affected the profit level of Jinan Truck; and (iv) the relief in the raw materials cost pressure and the macro-currency policy, the increase in the cost control measures which will improve the profitability of Jinan Truck.

Source:chinesestock.org