Xiangyang Automobile Bearing Share Co. Ltd. (China) reported third quarter 2002 financial results.

Sales: 56.82 million Yuan (USD $6.9 million)
Net Profit: 2.87 million Yuan (USD $347,000)

NOTE: figures are unaudited representations of management, and are compiled under Chinese accounting standards.

The profit this quarter marks a significant improvement for the company. This past June, Xiangyang reported a net operating loss for the fiscal year ended May 31, 2002. In 2001, it suffered a net operating loss of 56.1 million Yuan (USD $6.95 million).

Xiangyang, state-run, is the largest specialized automotive bearing manufacturer in China. Renamed from the Xiangyang Bearing Factory in 1993, it has over 5,000 employees producing 2,000 different types of bearings. Production capacity is 25 million sets per year.

The company's product line includes CV joints, hub assembly units, water pump bearings, air conditioning bearings, tapered roller and needle roller bearings, and clutch release bearings.

The company recently admitted that, while its markets have improved, it has been unable to respond. Lack of cash and working capital meant Xiangyang could not buy raw materials and components sufficient to maintain production or go after new business.

Although Xiangyang is state-run, its stock is traded on the Shenzhen stock exchange along with several other bearing companies such as Wafangdian and Xibei.

In August 2001, Xiangyang was implicated in a widespread accounting fraud investigation triggered by an investigation of its auditors. • article: Xiangyang implicated in accounting scandal