"The investment return of several ongoing projects is still being estimated and we are working on an internal restructuring to increase the company's profit," according to an GAIG official surnamed Li, who is in charge of the listing plan.

    "Moreover, auto sales on the Chinese market are still fluctuating, which may not be a good time for us to seek outside investment."

    GAIG is waiting for a better time to launch its IPO and is boosting its asset quality, according to e-finet.com, citing Lu Zhifeng, vice president of Denway Motors Ltd, a Hong Kong-listed affiliate of GAIG.

    Lu also noted that the IPO delay is expected to last for quite a long time.

    The Guangzhou-based state-owned company has driven its expansion rapidly during the last three years by extending its cooperation with foreign partners in carmaking and auto parts.

    Its 50-50 joint venture with Toyota Motors Corp, set up in 2004 with an investment of 3.8 billion yuan (US$460 million), rolled out its first Camry model in the first half of the year from a plant that has a designed capacity of 100,000 units initially.

    It also invested another 180 million yuan into its 30-percent-owned GAIG Toyota Engine Co Ltd in the second half of last year.

    GAIG's other foreign partners, Honda Motors Corp and Isuzu Motors Corp, produce passenger cars such as Accord and Fit as well as light-duty trucks, motorcycles and auto parts.

    The carmaker plans to boost its combined production capacity to 1.1 million units and sales revenue of 200 billion yuan by 2010, said Zeng Qinghong, vice general manager of GAIG.

    (Source: Shanghai Daily)