There's also this item, which I've already filed in the Jialing JH600 Stalling thread:

China Motorcycle Industry Faces Headwinds


February 6 -- China maintained its position as the world's largest motorcycle market for the 18th consecutive year in 2011 when it recorded 1.21 percent and 1.32 percent year-on-year increases in motorcycle production and sales to 27.01 million and 26.93 million units, respectively, reports Securities Daily, citing the China Association of Automobile Manufacturers.


Despite the gains made last year, the industry was facing huge operating pressures, with total profits down 20 percent from a year earlier to 2.7 billion yuan. This led to motorcycle manufacturers seeking new sources of earnings.


The Chongqing municipality is the base of the motorcycle industry in China, accounting for 33.51 percent of the total industry patents, according to the report.


China Jialing Industrial (600877), a leading Chongqing-based manufacturer of motorcycles, recently issued a profit warning.


The company is forecasting a 2011 loss of 216 million yuan as it was affected by falls in the prices of passenger cars, the ban on motorcycles in some Chinese cities, and a rise in operating costs.


An unnamed analyst at a local brokerage attributed the difficulties faced by Jialing Industrial to the fact that it only has a single product and thus has limited ability to counter market risks. Sales of motorcycles and related parts accounted for 99.98 percent of the company's revenue.


The probability of Jialing Industrial achieving a breakthrough in its optical component business in the short-term is low, according to the report.


The company could increase exports in order to improve its operating performance, said an industry analyst.


However, an employee handling Jialing Industrial's international business, Zhu Xiaoman, said yuan appreciation had a negative impact on exports to the target markets of Africa and South America.


During the first half of 2011, the company generated revenue of 252.66 million yuan from exports, accounting for 19.2 percent of the total. The poor export performance was a major contributor to the Jialing Industrial losses.


According to the report, exports accounted for more close to 50 percent of the revenue earned by industry peer Linhai (600099) in the first half of 2011.


Shares of China Jialing Industrial were unchanged to trade at 5.08 yuan per share at 14:43 today.


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