(Yicai Global) March 18 -- Fuyao Glass Industry Group, the world's largest glass producer for the car industry, posted a 30.9 percent increase in net profit to CNY4.1 billion (USD614 million) for last year, buoyed by returns from its investment in the US.

Fuyao achieved an 8 percent rise in operating revenue to CNY20.2 billion, according to the earnings report from the Fuzhou-based firm.

Overall revenue fell 0.64 percent compared with the year before due to a 4.2 percent output decline in China's auto industry. The firm's profit is mainly driven by exports of original equipment manufactured glass and aftermarket replacements. Overseas business revenue rose by one-quarter in 2018 to CNY8.3 billion.

The firm has invested in an auto glass production base in Ohio as well as a float glass facility in Mount Zion, Illinois. The two bases achieved a combined profit of USD36.7 million last year, nearly USD36 million higher than the USD750,000 posted in 2017.

The company's project in Tianjin, northern China, has been running normally since 2015 and generated a turnover of more than CNY250 million (USD37.3 million). The first stage of its Suzhou project commenced in March 2017 was completed last year while the second stage is slated for operation by the end of this year.

The firm's clients include the world's top 20 automakers including Toyota Motor, Volkswagen, General Motors, Ford Motor and Hyundai Motor, as well as China's top 10 passenger vehicle manufacturers. The firm's top five buyers contribute 16.5 percent of revenue.

Fuyao will need CNY26.5 billion throughout this year, of which CNY20.5 billion is for operating expenses, according to the report.

The majority of Fuyao Glass' assets are in China and they generate close to two-thirds of total turnover. China's economic transition and intensifying competition in the industry will bring risks, it added.

Editor: William Clegg