Sinotruk H1 net profit fall by 40 pct

Sinotruk (Hong Kong) Ltd said on Monday its profit attributable to shareholders dropped 39.8 percent year-on-year to 462 million yuan ($67.63 million) in the first six months ended June 30, 2009.

Total turnover in the first six months fell 16 percent to 14.2 billion yuan; and heavy duty truck sales volume fell 21.4 percent to 53,195 units as exports of finished trucks were hit by the global financial crisis.

Sinotruk, China's largest heavy-truck manufacturer by sales volume, agreed in July to sell just over a 25% stake in itself to German truck maker MAN SE for US$796 million.

Under their joint agreement, MAN will license engine, chassis and axle technology to Sinotruk, which will use the know-how to develop a new line of trucks to be made in China, with an annual sales target of 50,000 units by 2015. The companies will also jointly develop a new brand of premium trucks for China and other emerging markets.

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