(Yicai Global) March 27 -- Some 96 percent of BAIC Motor’s revenue last year came from its joint venture with German luxury carmaker Daimler as strong sales of the Mercedez Benz marque form the backbone of the Chinese auto manufacturer’s business.

Beijing Benz Automotive logged a 9 percent jump in revenue last year from the year before to CNY183.2 billion (USD26.6 billion), according to BAIC’s annual report published on March 24. Its gross profit margin expanded to 25.9 percent from 25.2 percent, largely due to improved sales and more cost-effective models.

The stellar results helped drive up Beijing-based BAIC’s profit by 8.8 percent to CNY4.2 billion (USD610.6 million) and revenue by 8 percent to CNY190 billion.

The JV, in which BAIC holds a 51 percent stake, has accounted for more than 90 percent of BAIC’s revenue for the past two years, up from 73.4 percent in 2016. Set up in 2005, the JV has contributed more than half of sales for many years and last year it accounted for 62.5 percent of sales.

By contrast, BAIC’s own brand Beijing Brand posted a 8.1 percent slump in revenue to CNY7.3 billion (USD1.1 billion), accounting for under 4 percent of total revenue. The decline was largely due to a change in vehicle models, the firm said.

BAIC runs two other joint ventures with South Korean carmakers, namely Beijing Hyundai Motor and Fujian Benz Automotive, but these contributed less than 1 percent of overall revenue. Their specific financial results were not announced.

BAIC’s share price [HKG:1958] edged up 0.4 percent to close at HKD2.16 (USD0.28) today.

Editor: Kim Taylor