香港交易及結算所有限公司和香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 TAN CHONG INTERNATIONAL LIMITED 陳唱國際有限公司 （於百慕達註冊成立之有限公司） （股份代號：693） 附屬公司ZERO CO., LTD.截至二零二五年六月三十日止年度財務業績公告 本公告並非陳唱國際有限公司(「本公司」)之財務業績公告。本公告乃本公司根據證券及期貨 條例第XIVA部及上市規則第13.09(2)(a)條而作出，為本公司股東提供本公司之上市附屬公司 ZERO之財務資料，ZERO已於二零二五年八月七日提交其截至二零二五年六月三十日止年度 財務業績。 本公告乃根據香港法例第571章證券及期貨條例(「證券及期貨條例」)第XIVA部及香港聯合交易 所有限公司證券上市規則(「上市規則」)第13.09(2)(a)條而作出。 Zero Co., Ltd. (「Zero」)為本公司非全資附屬公司，其股份於東京證券交易所(「東京證券交易 所」) 標準市場上市，已於二零二五年八 ...

Company Overview - Chen Chang International (00693.HK) closed at HKD 1.2 per share, up 12.15% with a trading volume of 51,000 shares and a turnover of HKD 60,200 [1] - The company is the exclusive distributor of Nissan and Subaru vehicles in Singapore and Hong Kong, and also distributes Nissan diesel heavy commercial vehicles and industrial machinery in Singapore and Brunei [2] Financial Performance - For the fiscal year ending December 31, 2024, Chen Chang International reported total revenue of HKD 11.759 billion, a year-on-year decrease of 8.15% [2] - The net profit attributable to shareholders was HKD 444 million, showing a significant year-on-year increase of 70.97% [2] - The gross profit margin stood at 19.82%, while the debt-to-asset ratio was 48.61% [2] Stock Performance - Over the past month, Chen Chang International has seen a cumulative increase of 9.18%, while year-to-date, the stock has risen by 4.9%, underperforming the Hang Seng Index which has increased by 16.31% [2] - The company's price-to-earnings (P/E) ratio is 4.49, ranking second in the professional retail industry, which has an average P/E ratio of 4.62 [2] Industry Context - The professional retail industry has a median P/E ratio of -0.28, with other companies in the sector showing varied P/E ratios, such as Baoguang Industrial (0.19), Baosheng International (5.4), and Chow Sang Sang (6.23) [2]

Financial Performance - The group recorded a revenue of HKD 12.7 billion in 2024, a slight decrease of 8% compared to HKD 13.8 billion in 2023, primarily due to unprecedented transformation challenges in the automotive sector[7]. - The group achieved a significant post-tax profit of HKD 609.5 million, a 60% increase from HKD 380.6 million in 2023, driven by strategic measures in its business portfolio[7]. - EBITDA increased by 13.2% from HKD 1.6 billion to HKD 1.8 billion, while operating profit rose by 27.1% from HKD 857.9 million to HKD 1.0903 billion, with an operating profit margin increasing from 6.2% to 8.6%[8]. - The total dividend for 2024 is HKD 150.998 million, consistent with the total dividend for the 2023 fiscal year, with a proposed final dividend of HKD 0.055 per share[12]. - The company reported a significant increase in revenue, achieving a total of $X million for the quarter, representing a Y% growth year-over-year[132]. - The company provided guidance for the next quarter, expecting revenue to be between $A million and $B million, indicating a growth rate of C%[135]. Debt and Financial Ratios - The net debt ratio was 48.3% as of December 31, 2024, slightly down from 48.6% in 2023, with net debt recorded at HKD 5.8721 billion[8]. - The net receivables from leasing and financing contracts amounted to HKD 2.36 billion, representing 44% of total loans and advances[23]. - Business loans totaled HKD 2.96 billion, accounting for 56% of total loans and advances, with 95% being secured loans[25]. - As of December 31, 2024, the provision for loan and advance impairment was HKD 47.6 million, up from HKD 39.4 million as of December 31, 2023[31]. - The bad debt write-off rate for the entire year of 2024 was 0.3%[31]. Employee and Operational Metrics - The group’s total employee count decreased by 11% to 4,912 as of the end of 2024, primarily due to the closure of the Subaru factory in Thailand[9]. - The employee turnover rate increased from 18.4% in 2023 to 21.6% in 2024, with significant changes noted in Thailand due to a one-time adjustment in production[100]. - The percentage of employees receiving training remained stable at 30% for males and decreased from 32% to 27% for females from 2023 to 2024[102]. - The average training hours completed per employee decreased for both management and non-management categories, attributed to the hiring of experienced personnel[103]. Sales and Market Performance - In Singapore, the total industry volume (TIV) increased by 37% in 2024, driven by the recovery of the Certificate of Entitlement (COE)[13]. - Nissan's overall sales increased by 27% compared to the previous year, maintaining strong market demand for its electric vehicle series[14]. - Subaru sales tripled in 2024, achieving a growth of nearly 203% compared to 2023, with the TIV rising by 42%[15]. - In Hong Kong, the group achieved a 10% increase in sales volume in 2024, outperforming the TIV growth of 6%[17]. - In Taiwan, sales volume decreased by 48% in 2024 due to intensified competition, while TIV contracted by 4%[18]. - In Malaysia, sales dropped by 29% compared to 2023, attributed to the introduction of multiple new brands in the market[19]. Governance and Compliance - The board consists of five executive directors, one non-executive director, and five independent non-executive directors, ensuring a balanced governance structure[40]. - The group has adopted the Corporate Governance Code and has complied with most of its provisions during the review period[38]. - The board has established an independence assessment mechanism in 2022 to enhance its effectiveness and ensure the protection of shareholders' interests[42]. - The board meets approximately quarterly, with special meetings convened for urgent matters, and has approved mid-term and annual performance results, as well as dividend recommendations[44]. - The company has adopted an anti-corruption policy to prevent, deter, detect, report, and investigate all forms of fraud and corruption, with the next review scheduled for 2025[118]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development practices and responsible resource management, emphasizing operational sustainability and efficient resource utilization[77]. - The company has established an ESG committee to assist the board in evaluating, prioritizing, and managing significant ESG issues[75]. - The company adheres to all applicable environmental laws and regulations set by authorities, supporting local governments in achieving net-zero emissions goals[77]. - The company has identified significant ESG focus areas, including resource usage, emissions, environmental compliance, and community investment[76]. - The company is exploring alternative fuel solutions, including e-Fuels and electric automated vehicles, to improve fuel efficiency and reduce greenhouse gas emissions[79]. Community Engagement and Corporate Social Responsibility (CSR) - The company donated two Subaru flat engines to a technical college in Thailand to enhance technical training for future workforce development[124]. - The company is actively involved in community projects, including a canal cleaning initiative in Thailand aimed at flood prevention and improving local community welfare[124]. - The company encourages employee participation in CSR activities, fostering a culture of social responsibility and enhancing workplace morale[124]. Product and Market Development - New product launches are anticipated to contribute an additional $D million in revenue, with a focus on expanding the product line in the upcoming year[136]. - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing product efficiency[138]. - Market expansion plans include entering two new regions, projected to increase market share by F% over the next fiscal year[139]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the automotive sector[140].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 12,698,567, a decrease of 8.15% from HKD 13,825,660 in 2023[2] - The gross profit for the year was HKD 2,517,164, down 6.81% from HKD 2,701,592 in the previous year[2] - The operating profit increased to HKD 1,090,302, representing a growth of 27.06% compared to HKD 857,884 in 2023[2] - The net profit attributable to shareholders rose to HKD 479,285, a significant increase of 70.83% from HKD 280,330 in the prior year[2] - Basic and diluted earnings per share improved to HKD 23.81, up from HKD 13.92, reflecting a growth of 70.83%[2] - The company reported a total comprehensive income of HKD 103,468, a decrease of 83.00% from HKD 609,631 in 2023[3] - The pre-tax profit for the year ended December 31, 2024, was HKD 886,730 thousand, an increase of 37.3% compared to HKD 645,848 thousand in 2023[15] - The net profit after tax for 2024 was HKD 609.5 million, a significant increase of 60% from HKD 380.6 million in 2023[23] - EBITDA increased by 13.2% to HKD 1.8 billion, compared to HKD 1.6 billion in 2023[24] - The operating profit rose by 27.1% to HKD 1.09 billion, up from HKD 857.9 million in 2023, with an operating profit margin increasing from 6.2% to 8.6%[24] Revenue Breakdown - Revenue from goods sales decreased to HKD 3,776,124 thousand in 2024 from HKD 5,033,458 thousand in 2023, representing a decline of 25%[11] - Revenue from services increased slightly to HKD 7,907,065 thousand in 2024 from HKD 7,831,027 thousand in 2023, showing a growth of 1%[11] - The total income from the automotive distribution and dealership business was HKD 3,800,141 thousand in 2024, down from HKD 5,008,372 thousand in 2023, a decrease of 24.2%[14] Assets and Liabilities - Total assets as of December 31, 2024, amounted to HKD 24,680,252, an increase from HKD 23,336,447 in 2023[4] - The company's cash and bank balances increased to HKD 2,242,933, up from HKD 1,909,287, indicating a growth of 17.43%[4] - Non-current liabilities rose to HKD 3,797,682, compared to HKD 3,563,314 in the previous year, marking an increase of 6.58%[5] - Trade receivables at the end of 2024 amounted to HKD 948.39 million, down from HKD 1.06 billion in 2023[20] - Trade payables decreased to HKD 844.42 million in 2024 from HKD 983.84 million in 2023[21] - The company's net debt as of December 31, 2024, was HKD 5.8721 billion, a decrease from HKD 5.9457 billion in 2023[24] Investment and Income - The company reported a total depreciation and amortization of HKD 709,605 thousand for the year ended December 31, 2024, compared to HKD 734,403 thousand in 2023[15] - The income from investment properties increased to HKD 135,159 thousand in 2024 from HKD 129,052 thousand in 2023, reflecting a growth of 4.8%[11] - The company’s interest income for the year was HKD 25,280 thousand, compared to HKD 24,452 thousand in 2023, representing a growth of 3.4%[15] - The company’s effective tax expense for the year was HKD 277,243 thousand, up from HKD 265,268 thousand in 2023, indicating an increase of 4.5%[17] - The company’s total fixed rental income from investment properties was HKD 135,159 thousand in 2024, a slight increase from HKD 129,052 thousand in 2023[11] Corporate Governance and Management - The company adheres to high standards of corporate governance to protect shareholder interests and financial performance[66] - The board has implemented self-management and oversight measures to enhance regulatory effectiveness[66] - The current chairman and CEO, Mr. Chen Yongshun, has significant expertise in the automotive industry, contributing to the company's listing success[67] - The board structure ensures a balance of power between the chairman and other experienced board members[67] - The executive directors and senior management support the chairman in decision-making roles[67] Market and Competition - Nissan's overall sales increased by 27% compared to last year, with strong demand for electric vehicles and becoming the best-selling light commercial vehicle brand in Singapore[31] - Subaru's sales tripled in 2024, achieving a growth of nearly 203% compared to 2023, and outpacing TIV growth by 42%[32] - Subaru's sales in Hong Kong increased by 10% in 2024, surpassing TIV growth of 6%, while facing a 49% decline in sales in China due to intense market competition[34] - In Taiwan, Subaru's sales dropped by 48% in 2024, attributed to increased competition from new brands, while TIV decreased by 4%[35] - In Malaysia, Subaru's sales fell by 29% in 2024 due to the introduction of new brands, but the company expects recovery in 2025[36] Risk Management - The company anticipates facing significant uncertainties due to global political changes, which may significantly alter international trade, regulatory frameworks, and market dynamics[57] - The credit risk framework includes credit approval and monitoring of existing contracts, with a focus on identifying and analyzing risks[46][47] - The company has established risk management policies to regularly review and adapt to market conditions and business changes[46] - The company has a credit risk policy that specifies limits for single borrowers and industry sectors, reviewed monthly[53] - The company requires credit management officers to make at least 55 calls daily, with records reviewed by supervisors[58] Future Outlook - The company has not indicated any new product launches or significant market expansion strategies during the reporting period[6] - The proposed final dividend for 2024 is HKD 0.055 per share, totaling HKD 110.73 million, compared to HKD 0.045 per share in 2023[22] - The total amount of commercial loans provided to 372 Singapore customers reached HKD 2.96 billion, representing 56% of total loans and advances[43] - The aging analysis of commercial loan receivables shows a balance of HKD 20.6 billion due within one year[43] - As of December 31, 2024, the provision for loan and advance impairment was HKD 47.6 million, an increase from HKD 39.4 million as of December 31, 2023, with a bad debt write-off rate of 0.3% for the year 2024[56] Meeting and Compliance - The annual general meeting is scheduled for May 27, 2025, with a notice to be provided by April 25, 2025[61] - The company has not engaged in the purchase, sale, or redemption of its listed securities during the year[63]

Financial Performance - The group's revenue for the first half of 2024 was HKD 6.59 billion, a decrease of 9.9% compared to HKD 7.32 billion in the same period of 2023[7]. - The net profit after tax for the first half of 2024 was HKD 280 million, down from HKD 1.874 billion in the same period of 2023[7]. - EBITDA for the first half of 2024 decreased by 25.3% to HKD 583 million, compared to HKD 781 million in the first half of 2023[7]. - The group's return on capital employed (ROCE) decreased to 1.5% from 2.8% in the first half of 2023[8]. - The company's basic and diluted earnings per share for the period were HKD (1.78), compared to HKD 6.30 in the previous year[27]. - The company reported a net profit of HKD 28,018 for the six months, a substantial decrease of 85% from HKD 187,356 in the prior year[27]. - The total comprehensive income for the six months ended June 30, 2024, was a loss of HKD 190,157, compared to a gain of HKD 249,234 in the same period of 2023[28]. - The company reported a pre-tax profit of HKD 140,133 thousand for the six months ended June 30, 2024, compared to HKD 327,385 thousand in 2023, reflecting a decline of 57%[54]. - The company reported a decrease in gross profit margin, with a total gross profit of HKD 583,493 thousand for the current period, down from HKD 780,722 thousand[53]. Sales and Market Performance - Nissan's sales in Singapore increased by 38% in the first half of 2024 compared to the same period in 2023, with passenger and commercial vehicle sales growing by 27% and 69%, respectively[10]. - Subaru's sales in Singapore grew by 35% in the first half of 2024, driven by strong performance of the Subaru Forester E-Boxer[11]. - In Malaysia, the total industry volume (TIV) sales increased by only 9% in H1 2024 compared to H1 2023, while Subaru's sales declined by 5% year-on-year[16]. - In Thailand, the group's sales volume decreased by 64% year-on-year, but the long-term business outlook remains optimistic due to government incentives for electric vehicles[16]. - In Vietnam, the TIV sales decreased by 5% in H1 2024, while the group achieved a 12% increase in sales, with optimism for H2 2024 driven by the launch of the new Crosstrek model[16]. Investments and Financial Position - The group's investment through other comprehensive income at fair value was HKD 1.94 billion, with unrealized gains of HKD 262 million in the first half of 2024[9]. - The group's leasing and financing receivables amounted to HKD 2.3 billion as of June 30, 2024, accounting for 42% of total loans and advances[18]. - The commercial loans provided to 455 Singapore clients totaled HKD 3.1 billion, representing 58% of total loans and advances, with 69% of clients being SMEs[19]. - The company holds an investment in Subaru Corporation, with a fair value of HKD 1,887,879,000 as of June 30, 2024, representing an increase from HKD 1,630,437,000 as of December 31, 2023[58]. - Total loans and receivables as of June 30, 2024, amounted to HKD 5,458,524,000, with a provision for losses of HKD 46,310,000[61]. Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 368,668, a significant improvement from a net cash outflow of HKD 1,133,311 in the previous year[44]. - Cash and cash equivalents increased to HKD 1,644,538 as of June 30, 2024, compared to HKD 1,637,538 in the same period of 2023, reflecting a growth of 0.4%[44]. - The company’s financing activities generated a net cash inflow of HKD 28,681 for the six months ended June 30, 2024, compared to a significant inflow of HKD 759,622 in the previous year[44]. Dividends and Shareholder Information - The group declared an interim dividend of HKD 0.02 per share for the first half of 2024[8]. - The company declared dividends amounting to HKD 150,998 during the reporting period[40]. - The interim dividend declared was HKD 0.02 per share, totaling HKD 40,266,000, down from HKD 60,399,000 in 2023[84]. - The company’s total equity held by directors as of June 30, 2024, was 586,937,672 shares, representing 29.15% of the total issued share capital[87]. Challenges and Future Outlook - The company anticipates ongoing challenges in the second half of 2024, including geopolitical tensions and shifts in consumer demand for electric vehicles[26]. - The group is focused on balancing cautious optimism with effective risk management to navigate the current complex market environment[26]. - The group announced the cessation of its joint venture factory in Thailand by the end of 2024, transitioning from Completely Knocked Down (CKD) to Completely Built Up (CBU) models in Malaysia, Thailand, Vietnam, and Cambodia starting in 2025[16]. Employee Compensation and Stock Incentives - The total number of points granted to employees under the 2015 stock incentive plan is 472,520, with 277,000 points remaining unexercised as of June 30, 2024[66]. - The 2022 stock incentive plan allows for a maximum of 252,000 points to be granted, with a total of 71,200 points granted as equity-settled and 17,300 points as cash-settled as of June 30, 2024[72]. - The fair value of employee service share options was measured using the Black-Scholes option pricing model, with expected volatility based on historical volatility and adjusted for future expectations[76]. Compliance and Governance - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[91]. - All directors confirmed compliance with the securities trading requirements during the accounting review period[92]. - The company has not been informed of any violations of the Corporate Governance Code during the six months ending June 30, 2024[93].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 6,589,126 thousand, a decrease of 9.9% from HKD 7,315,706 thousand in the same period of 2023[2] - The gross profit for the same period was HKD 1,302,044 thousand, down from HKD 1,371,439 thousand, reflecting a gross margin of approximately 19.8%[2] - Operating profit decreased significantly to HKD 242,711 thousand from HKD 432,022 thousand, indicating a decline of 43.9%[2] - The net profit attributable to shareholders for the period was HKD 28,018 thousand, a sharp decline of 85.0% compared to HKD 187,356 thousand in the previous year[2] - Total comprehensive income for the period was HKD (190,157) thousand, compared to HKD 249,234 thousand in the same period last year[3] - Total revenue for the six months ended June 30, 2024, was HKD 6,589,126, a decrease of 10% compared to HKD 7,315,706 for the same period in 2023[9] - The company reported a total segment profit before tax, depreciation, and amortization of HKD 583,493, a decrease of 25% from HKD 780,722 in 2023[12] - Basic loss per share for the six months ended June 30, 2024, was HKD 0.018, compared to a profit of HKD 0.063 in 2023[16] - EBITDA for the first half of 2024 decreased by 25.3% to HKD 583 million, compared to HKD 781 million in the same period of 2023[35] Assets and Liabilities - Non-current assets decreased to HKD 13,742,298 thousand from HKD 13,799,413 thousand, reflecting a reduction of 0.4%[4] - Current assets decreased to HKD 9,151,300 thousand from HKD 9,537,034 thousand, a decline of 4.0%[4] - The company's total liabilities decreased to HKD 7,657,448 thousand from HKD 7,534,172 thousand, indicating a slight increase of 1.6%[5] - The net asset value as of June 30, 2024, was HKD 11,953,560 thousand, down from HKD 12,238,961 thousand, a decrease of 2.3%[5] Dividends and Shareholder Returns - The interim dividend declared was HKD 0.02 per share, down from HKD 0.03 per share in the previous year[15] - The interim dividend declared for the first half of 2024 is HKD 0.02 per share, totaling HKD 40.27 million, compared to HKD 0.03 per share and HKD 60.40 million in 2023[33] Revenue Breakdown - Revenue from goods sales was HKD 1,961,688, down 27% from HKD 2,681,234 in the previous year[9] - Revenue from services provided was HKD 4,117,640, slightly down from HKD 4,169,456 in 2023[9] Financing and Costs - Interest income increased to HKD 229,025 from HKD 215,734 year-on-year[9] - The company reported a financing cost of HKD 103,172, slightly down from HKD 105,672 in 2023[13] - The fair value gain on investments for the six months was HKD 257,442, compared to HKD 302,994 in 2023[18] Credit and Risk Management - The company anticipates ongoing challenges in the second half of 2024, including geopolitical tensions and unpredictable stock market fluctuations[55] - The credit risk framework includes monthly reviews of limits on single obligors and industry exposures[53] - The credit management team is required to make at least 55 calls daily to monitor client accounts[53] - The company has identified significant financial difficulties and defaults as indicators of credit impairment[54] - The management emphasizes a balance between cautious optimism and effective risk management to navigate the current market environment[55] - The company’s credit risk policy is regularly reviewed to reflect market conditions and business changes[52] Stock Incentive Plans - The 2015 stock incentive plan has granted a total of 472,520 points to selected employees as of June 30, 2024[22] - The fair value of points granted on July 1, 2023, was based on a stock price of 1,139 JPY, with an expected volatility of 27.8%[25] - The 2022 stock incentive plan allows for a maximum of 252,000 points to be granted, with 71,200 points allocated for equity settlement and 17,300 points for cash settlement as of June 30, 2024[27] - The maximum funding for the 2022 plan is set at 292,824,000 JPY (approximately 14,888,000 HKD)[27] - The net expense recognized for the 2015 plan was 87,000 HKD as of June 30, 2024, compared to 176,000 HKD in 2023[26] Market Performance - Subaru's sales in Hong Kong decreased by 4% year-on-year in the first half of 2024, primarily due to the late launch of the Solterra electric vehicle[42] - In Taiwan, Subaru's sales dropped by 51% year-on-year in the first half of 2024 due to increased competition from new brands entering the market[43] - In the Philippines, sales volume fell by 33% year-on-year, impacted by a favorable tax regime attracting new automotive brands[43] - In Malaysia, Subaru's sales volume slightly declined by 5% year-on-year, while the total industry volume (TIV) grew by 9%[45] - In Thailand, Subaru's sales volume decreased by 64% year-on-year, with initial signs of weakening from government incentives for electric vehicles[45] - In Vietnam, the total industry volume (TIV) shrank by 5%, but Subaru achieved a 12% increase in sales volume in the first half of 2024[46] - In Cambodia, sales volume decreased by 31% year-on-year in the first half of 2024, but growth is expected in the second half due to ongoing marketing efforts[46] Subsidiary Performance - ZERO, the vehicle transport and logistics division, reported revenue of HKD 3.9 billion, a 1% decline, while net profit increased by 24% year-on-year[46] - As of June 30, 2024, the net receivables for leasing and financing amounted to HKD 2.3 billion, accounting for 42% of total loans and advances[47] - The total amount of commercial loans provided to 455 Singapore customers reached HKD 3.1 billion, representing 58% of total loans and advances[48] - As of June 30, 2024, the impairment provision for loans and advances and finance leases was HKD 46.3 million, an increase from HKD 39.4 million as of December 31, 2023[54] Other Information - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the current reporting period[6] - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the reporting period[56] - The credit approval process involves thorough screening checks, including anti-money laundering and terrorist financing assessments[53] - The closing price of subsidiary shares was 1,054 JPY (approximately 62 HKD) on July 1, 2022, and 1,334 JPY (approximately 74 HKD) on July 1, 2023[26] - The fair value of the granted points as of October 1, 2023, was JPY 1,312, compared to JPY 934 on October 1, 2022[31] - The expected volatility for the Black-Scholes option pricing model was 26.8% as of October 1, 2023, down from 28.7% a year earlier[31]

Sales Performance - In the Philippines, the group's sales volume increased significantly by 38% compared to 2022, driven by the successful launch of new Subaru models[14]. - In Singapore, the Subaru business launched the new Subaru Crosstrek E-Boxer, featuring advanced safety technology and a hybrid system, contributing to its popularity[14]. - In Malaysia, Subaru's sales volume decreased by 35% due to the reimplementation of sales tax, but a strong recovery is expected in 2024[14]. - In Thailand, despite government subsidies for electric vehicles hindering sales momentum, Subaru's sales increased by 2% due to targeted marketing efforts[14]. - In Vietnam, Subaru's performance improved by 6% year-on-year despite a 23% decline in the total industry volume (TIV) in 2022[14]. - The group's sales volume in Hong Kong decreased by 13% in 2023, primarily due to semiconductor supply shortages, but strong pre-orders for the new Subaru Solterra electric vehicle are expected to drive future growth[14]. - In China, Subaru sales dropped by 39% compared to 2022 due to stricter emission standards causing a 4-month delivery suspension for the Subaru Forester[14]. Financial Performance - The group's revenue for 2023 was HKD 13.8 billion, a slight increase of 2.6% from HKD 13.5 billion in 2022, primarily due to the acquisition of ETHOZ Group in July 2022[15]. - The group's net profit after tax was HKD 380.6 million, a significant decline of 25.5% compared to HKD 510.7 million in 2022[15]. - EBITDA increased by 7.3% from HKD 1.5 billion to HKD 1.6 billion, with operating profit at HKD 857.9 million, reflecting a 2.2% growth from HKD 839.2 million in 2022[15]. - The net debt ratio was 48.6%, with net debt recorded at HKD 5.9457 billion, up from HKD 3.7832 billion in 2022, primarily due to the inclusion of ETHOZ Group's accounts[15]. - The total dividend for 2023 was HKD 150.998 million, down 25% from HKD 201.331 million in 2022, with a proposed final dividend of HKD 0.045 per share[17]. Operational Highlights - The ETHOZ Group, acquired in July 2022, recorded revenue of HKD 864.2 million in 2023, accounting for 6.3% of the group's revenue[14]. - ZERO, the group's vehicle transportation and logistics division, reported a revenue decline of 1.4% to HKD 7.3 billion, while annual net profit increased by 6.8%[14]. - The group anticipates strong growth in Thailand in 2024 as government subsidies for electric vehicles are reduced[14]. - The company implemented a fuel surcharge in September 2022 to mitigate rising fuel costs due to surging oil prices and yen depreciation[25]. Employee and Governance - The group's total number of employees as of December 31, 2023, was 5,510, a slight decrease of 0.5% from 5,537 in 2022[15]. - The board of directors consists of four executive directors, two non-executive directors, and five independent non-executive directors, ensuring a balanced governance structure[76]. - The company has adopted a diversity policy for board members, which was established on August 30, 2013, to enhance performance quality[76]. - The company recognizes the importance of high standards of corporate governance to protect shareholder interests and enhance financial performance[76]. Environmental and Sustainability Initiatives - The group plans to reduce energy consumption by 5% from the 2021 baseline by 2030, with energy consumption increasing by 4.91% in 2023 compared to 2021[112]. - Total water consumption increased from 111,965 cubic meters in 2022 to 113,069 cubic meters in 2023, maintaining a water intensity of 0.24 cubic meters per square meter[118]. - The group aims to reduce water consumption by 8% from the 2021 baseline by 2030, recognizing the importance of sustainable resource management[119]. - The group acknowledges the global scarcity of resources and emphasizes the importance of sustainable business operations[119]. Community Engagement and Corporate Social Responsibility - TCIL donated engines worth over 7 million Thai Baht to enhance technical capabilities in education institutions in Thailand[186]. - The company has established a whistleblowing policy to allow employees to report fraud and misconduct, ensuring confidentiality and protection against retaliation[171]. - The company continues to focus on corporate social responsibility initiatives aimed at community welfare and environmental protection[172]. - 36 elderly individuals from the Singapore Methodist Welfare Services were given exclusive participation in a signature automotive challenge, promoting intergenerational connections[188].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 13,825,660, an increase of 2.57% from HKD 13,478,667 in 2022[2] - Gross profit for the year was HKD 2,701,592, representing a gross margin of approximately 19.5%, up from HKD 2,310,143 in 2022[2] - Operating profit increased to HKD 857,884, compared to HKD 839,225 in the previous year, reflecting a growth of 2.5%[2] - Net profit attributable to shareholders decreased to HKD 380,580, down 25.5% from HKD 510,664 in 2022[2] - Basic and diluted earnings per share were HKD 13.92, a decrease from HKD 20.77 in the prior year[2] - Total comprehensive income for the year was HKD 609,631, compared to a loss of HKD 20,692 in 2022[3] - EBITDA for the year ended December 31, 2023, increased to HKD 1,567,835,000, up 7.3% from HKD 1,460,840,000 in 2022[22] - The company reported a net profit before tax of HKD 645,848,000 for the year ended December 31, 2023, down from HKD 775,815,000 in 2022[23] - The basic earnings per share for the year ended December 31, 2023, was HKD 0.139, down from HKD 0.207 in 2022[26] - The group recorded revenue of HKD 13.8 billion in 2023, a slight increase of 2.6% from HKD 13.5 billion in 2022, primarily due to the acquisition of ETHOZ Group in July 2022[30] - The group's net profit after tax decreased by 25.5% to HKD 380.6 million in 2023 from HKD 510.7 million in 2022[30] - EBITDA increased by 7.3% to HKD 1.6 billion, with operating profit rising to HKD 857.9 million, maintaining an operating profit margin of 6.2%[30] Assets and Liabilities - Non-current assets increased to HKD 13,799,413 from HKD 13,081,219 in 2022, indicating a growth of 5.5%[4] - Current assets rose to HKD 9,537,034, up from HKD 8,897,002 in the previous year, reflecting an increase of 7.2%[4] - Total liabilities increased to HKD 7,534,172, compared to HKD 7,390,671 in 2022, marking a rise of 1.9%[5] - Net assets as of December 31, 2023, were HKD 12,238,961, an increase from HKD 11,886,580 in 2022, representing a growth of 2.9%[5] - The net debt ratio as of December 31, 2023, was 48.6%, with net debt recorded at HKD 5.9457 billion, up from HKD 3.7832 billion in 2022[30] Revenue Breakdown - Revenue from goods sales was HKD 5,033,458, slightly down from HKD 5,048,992 in the previous year, indicating a decrease of about 0.31%[14] - Revenue from services provided was HKD 7,831,027, a decrease from HKD 7,894,714, reflecting a decline of approximately 0.80%[14] - Rental income from investment properties increased to HKD 451,764 from HKD 203,662, showing a significant growth of approximately 121.00%[14] - Revenue from Singapore increased to HKD 1,915,475 from HKD 1,342,647, marking a growth of about 42.67%[15] - Revenue from China rose to HKD 704,754 from HKD 688,028, representing an increase of approximately 2.00%[15] - Revenue from Thailand decreased to HKD 657,266 from HKD 753,847, indicating a decline of about 12.83%[15] - ETHOZ Group contributed HKD 864.2 million in revenue and HKD 110.2 million in net profit after tax, accounting for 6.3% and 29.0% of the group's total revenue and net profit, respectively[36] Dividends - The company declared an interim dividend of HKD 0.03 per share, totaling HKD 60,399,000, compared to HKD 0.025 per share (HKD 50,333,000) in 2022[25] - The proposed final dividend is HKD 0.045 per share, amounting to HKD 90,599,000, down from HKD 150,998,000 in 2022[29] - The total dividend for 2023 is HKD 150.998 million, a decrease of 25% from HKD 201.331 million in 2022, with a proposed final dividend of HKD 0.045 per share[33] Operational Insights - The company is a distributor for Nissan and Subaru vehicles in Singapore and several Southeast Asian countries, focusing on various models of passenger and light commercial vehicles[17] - The company has significant operations in property leasing and development, primarily in Singapore and Hong Kong, contributing to its rental income[18] - The company is involved in vehicle logistics services in Japan, providing human resource management and general freight services[18] Market Performance - In Singapore, Nissan passenger car sales increased by 52%, making it the fifth best-selling passenger car brand, while overall sales grew by 14% despite commercial vehicle sales decline[35] - Subaru sales in Hong Kong decreased by 13% due to microchip shortages, while pre-orders for the new Subaru Solterra electric vehicle are strong, expected to start deliveries in Q1 2024[37] - In Taiwan, Subaru sales experienced a slight decline of 11% due to temporary microchip shortages, while sales in the Philippines surged by 38% driven by new model launches[38] - In Malaysia, Subaru's sales volume decreased by 35% compared to last year due to the reimplementation of sales tax in 2023, but a strong recovery is expected in 2024 with high acceptance of the revamped Subaru Forester[39] - In Thailand, Subaru's sales increased by 2% year-on-year, aided by marketing efforts targeting off-road users, and stronger growth is anticipated in 2024 as the government plans to reduce electric vehicle subsidies[39] - In Vietnam, despite a 23% decline in TIV from 2022, Subaru's performance improved by 6% year-on-year, with expectations for a strong return in 2024 as the economic situation improves[39] - In Cambodia, the automotive industry shrank by 14% compared to 2022, with Subaru's sales volume dropping by 35% from the previous year's extraordinary growth[39] Credit and Risk Management - The credit risk framework includes monthly reviews of limits on single obligors and industry sectors to manage potential risks effectively[47] - The impairment provision for loans and advances was HKD 39.4 million, a decrease from HKD 76.4 million as of December 31, 2022[49] - The write-off rate for bad debts was 0.3% for the year ended December 31, 2023, compared to 0.1% for the first six months of 2023[49] - The group conducts regular reviews of its investment portfolio to ensure asset quality does not deteriorate[48] - Credit management involves daily follow-ups with clients, including at least 55 calls per credit manager[48] - The group identifies and tracks overdue loans during monthly aging meetings to assess impairment[49] Governance and Compliance - The audit committee has reviewed the financial reports for the year ended December 31, 2023, ensuring compliance with high governance standards[54] - The annual general meeting is scheduled for May 28, 2024, with shareholder registration suspended from May 22 to May 28, 2024[51] - The company has not purchased, sold, or redeemed any of its listed securities during the year[52]

Financial Performance - For the first half of 2023, the group's revenue was HKD 7.32 billion, a 13% increase from HKD 6.48 billion in the same period of 2022[4] - The group's net profit after tax for the first half of 2023 was HKD 187.4 million, compared to HKD 172.9 million in the same period of 2022, reflecting an 8% growth[4] - EBITDA increased by 40% to HKD 781 million, up from HKD 558 million in the previous year[4] - The ROCE rose to 2.8% from 2.3% in the first half of 2022[4] - The company reported a profit before tax of HKD 327,385,000 for the six months ended June 30, 2023, compared to HKD 276,702,000 in 2022, representing a growth of 18.3%[46] - The company’s net profit for the six months ended June 30, 2023, was HKD 187,356, compared to HKD 172,864 for the same period in 2022, reflecting a growth of 8.4%[28] - The company’s total comprehensive income for the period was HKD 249,234, a significant recovery from a loss of HKD 325,242 in the previous year[29] Revenue Breakdown - Revenue from goods sales was HKD 2,681,234,000, up from HKD 2,377,863,000, reflecting a growth of 12.7%[42] - Revenue from services provided increased to HKD 4,169,456,000 from HKD 4,018,890,000, marking a rise of 3.7%[42] - Revenue from Singapore increased significantly to HKD 909,526,000 from HKD 522,977,000, a growth of 73.7%[43] - The rental income from investment properties rose to HKD 62,615,000, compared to HKD 52,021,000, reflecting a growth of 20.2%[42] Debt and Liabilities - The net debt ratio as of June 30, 2023, was 45.5%, with net debt amounting to HKD 5,451.3 million, an increase from HKD 3,783.2 million at the end of 2022[4] - As of June 30, 2023, the company's total liabilities increased to HKD 4,785,817 thousand from HKD 4,244,931 thousand, representing a growth of approximately 12.8% year-over-year[32] - Non-current liabilities, specifically borrowings, rose to HKD 2,324,600 thousand compared to HKD 1,881,000 thousand as of December 31, 2022, marking a significant increase of 23.6%[33] - The total amount of overdue loans exceeding 90 days decreased, contributing to a reduction in non-performing loans due to the reopening of the Chinese economy[24] Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2023, was a negative HKD 1,133,311 thousand, a decline from a positive HKD 116,388 thousand in the same period of 2022[38] - Cash and cash equivalents decreased to HKD 1,637,538 thousand as of June 30, 2023, down from HKD 2,551,856 thousand a year earlier, reflecting a decline of about 35.7%[38] - The company’s cash and bank balances decreased to HKD 1,745,661 from HKD 2,587,009, indicating a liquidity contraction[31] Investments and Assets - The group's investments through other comprehensive income amounted to HKD 1.721 billion, with unrealized gains of HKD 309 million compared to a loss of HKD 7.8 million in the previous year[6] - The company’s non-current assets totaled HKD 13,458,071 as of June 30, 2023, compared to HKD 13,081,219 as of December 31, 2022[30] - The total assets minus current liabilities amounted to HKD 15,065,326 thousand as of June 30, 2023, compared to HKD 14,587,550 thousand as of December 31, 2022, representing an increase of about 3.3%[32] Corporate Strategy and Outlook - The group plans to expand ETHOZ's corporate financing business in Singapore and equipment leasing in China, maintaining a cautious optimism for the second half of 2023[8] - The company remains cautiously optimistic about its operational capabilities despite geopolitical instability and economic challenges affecting consumer spending[25] - The company continues to monitor economic fluctuations and changing consumer trends to adapt its strategies accordingly[25] Shareholder Information - Major shareholders include Chen Chang United Limited with 35.05% and Promenade Group Limited with 10.53% of the issued shares[84] - The total equity held by executive director Chen Yongshun is 586,937,672 shares, representing 29.15% of the total issued shares[82] Stock Incentive Plans - The company has a total issued and paid-up capital of HKD 1,006,655,000 as of June 30, 2023[59] - The total number of unexercised points at the end of 2023 is 276,000, with the same number being exercisable[62] - The maximum funding amount for the 2015 plan is 500,000,000 JPY (approximately 28,712,000 HKD)[60] - The 2022 stock incentive plan allows for a maximum of 252,000 points to be granted, with 35,000 points granted as equity-settled and 8,500 points as cash-settled as of June 30, 2023[66] Compliance and Governance - The audit committee reviewed the unaudited consolidated interim financial report for the six months ended June 30, 2023[86] - All directors confirmed compliance with the securities trading requirements during the accounting review period[87] - The company has not received any information indicating a violation of the Corporate Governance Code during the six months ended June 30, 2023[88]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 7,315,706 thousand, representing an increase of 12.8% compared to HKD 6,480,489 thousand in the same period of 2022[2] - Gross profit for the same period was HKD 1,371,439 thousand, up 33.2% from HKD 1,029,046 thousand year-on-year[2] - Operating profit increased to HKD 432,022 thousand, a significant rise of 59.4% compared to HKD 271,171 thousand in the previous year[2] - Profit attributable to shareholders for the period was HKD 126,859 thousand, slightly down from HKD 130,560 thousand in 2022, indicating a decrease of 2.0%[2] - Total comprehensive income for the period was HKD 249,234 thousand, compared to HKD 325,242 thousand in the same period last year, reflecting a decrease of 23.4%[3] - The company reported a profit before tax of HKD 327,385,000 for the six months ended June 30, 2023, compared to HKD 276,702,000 in 2022, marking a 18.3% increase[13] - The group's net profit after tax for the first half of 2023 was HKD 187.4 million, up from HKD 172.9 million in the same period of 2022, representing an 8% increase[33] - EBITDA rose by 40% to HKD 781 million, compared to HKD 558 million in the previous year[33] Assets and Equity - Non-current assets amounted to HKD 13,458,071 thousand as of June 30, 2023, compared to HKD 13,081,219 thousand at the end of 2022, showing an increase of 2.9%[4] - Current assets increased to HKD 9,283,690 thousand from HKD 8,897,002 thousand, representing a growth of 4.3%[4] - The company reported a net current asset of HKD 1,607,255 thousand, up from HKD 1,506,331 thousand, indicating an increase of 6.7%[4] - Total equity attributable to shareholders was HKD 10,797,252 thousand, compared to HKD 10,684,290 thousand in the previous year, reflecting an increase of 1.1%[5] Revenue Breakdown - Revenue from goods sales was HKD 2,681,234,000, up 12.7% from HKD 2,377,863,000 in the previous year[9] - Revenue from services provided increased to HKD 4,169,456,000, compared to HKD 4,018,890,000 in 2022, reflecting a growth of 3.7%[9] - The geographical revenue breakdown showed significant growth in Singapore, with revenue rising to HKD 909,526,000 from HKD 522,977,000, a 73.7% increase[10] Dividends and Earnings - Basic earnings per share for the six months ended June 30, 2023, were HKD 126,859,000, slightly down from HKD 130,560,000 in 2022[17] - The interim dividend declared was HKD 0.03 per share, an increase from HKD 0.025 per share in the previous year, totaling HKD 60,399,000 compared to HKD 50,333,000 in 2022[16] - The interim dividend declared for the first half of 2023 is HKD 0.03 per share, up from HKD 0.025 per share in 2022, totaling HKD 60.4 million[31] Costs and Expenses - The company’s financing costs rose to HKD 105,672,000 from HKD 28,574,000 in the previous year, indicating increased borrowing costs[14] - Interest income from loans and advances increased significantly to HKD 215,734,000 from HKD 12,388,000 in 2022[9] Stock Incentive Plans - The 2015 stock incentive plan has granted a total of 469,520 points to eligible employees as of June 30, 2023[23] - The 2022 stock incentive plan allows for a maximum of 252,000 points to be granted, with 35,000 points allocated for equity settlement and 8,500 points for cash settlement as of June 30, 2023[28] - The company confirmed a net expense of 176,000 HKD for the 2015 plan as of June 30, 2023, down from 540,000 HKD in 2022[27] Economic and Market Conditions - The group is maintaining a cautious optimism in light of geopolitical instability, rising interest rates, and economic weakness affecting business activities and consumer spending[50] - The management is closely monitoring economic fluctuations and changing consumer trends to ensure operational confidence in the region[50] Impairment and Loan Management - As of June 30, 2023, the impairment provision for loans and advances was HKD 42.0 million, a decrease from HKD 76.4 million as of December 31, 2022[49] - The group experienced a reduction in overdue loans exceeding 90 days due to the reopening of the Chinese economy, leading to a decline in non-performing loans[49] - The bad debt write-off for the first half of 2023 was less than 0.1%[49] Business Expansion and Performance - The group plans to expand its corporate financing business in Singapore and equipment leasing business in China, while adjusting loan and rental rates in response to expected interest rate increases[36] - In Taiwan, Subaru's sales volume grew by 38% against a backdrop of a 16% increase in TIV, driven by the launch of new models[38] - In Thailand, Subaru's sales increased significantly by 60% year-on-year, driven by the positive reception of the new Subaru Forester equipped with the fourth-generation Eyesight technology[39]