Chinese car rental company CAR Inc. announced that its net profit in the first quarter of this year advanced 70% year-on-year to reach RMB 390 million (USD 56.8 million), more than the net profit for all of 2018.
The company said it “has entered 2019 with a solid financial performance and prosperous business growth.”
CAR earned net profits of RMB 290 million in 2018, down 67% year-on-year amid fierce competition from ride-hailing and car-sharing companies, it said in its annual report.
The company allows individuals to rent a car via its app or offline stores, and also leases vehicles to an affiliated ride-hailing platform, UCar.
Its revenue from rentals increased by 22% year-on-year to reach RMB 1.27 billion, but its revenue from UCar-related business decreased to RMB 190 million, down by 15% compared to the previous year.
The company also announced a plan approved by its shareholders to buy back up to 10% of its shares.
CAR closed at HKD 6.94 (USD 0.88) Wednesday, up 12.85% from one day earlier and marking an increase by 23.7% year-to-date.
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