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SHANGHAI, April 28 (Reuters) - China's TianjinXiali Automobile Co Ltd said on Monday it moved back into the black in the first quarter of 2003 when car output surged 94.6 percent year on year.
In a statement published on the Shenzhen stock exchange's Web site at www.cninfo.com.cn, the company reported net earnings of 55.6 million yuan ($6.72 million) against a net loss of 31.39 million yuan in the same period last year.
Xiali, which runs a venture with Japan's top automaker, Motor Corp , also reported a 2002 net loss of 790.37 million yuan agaist a loss of 95.49 million yuan in 2001, due to an accelerating domestic price war.
And the company said it would try to reverse losses this year by improving operations and slashing costs.
"In the first quarter of this year, our company experienced fundamental changes as we made use of good market conditions and enhanced our capacity and sales," FAW Xiali said.
The company, based in the northern city of Tianjin, said car output rose a steep 94.55 percent to 29,846, while sales leapt 87.84 percent to 27,523.
FAW Xiali also welcomed the government's decision to scrap 30 percent of its consumption taxes retroactively from 2000, because some products had achieved emissions standards, Tianjin FAW said.
Parent First Automotive Works is also in business withto tap the country's booming auto market, which saw car sales breaking the one-million mark for the first time in 2002.
Analysts said the deal between FAW and Toyota, which signed a pact to make 300,000 to 400,000 cars by 2010, would help FAW Xiali's long-term development. ($1=8.277 Yuan)