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]

Financial Performance - The company achieved a revenue growth of 14%, reaching HKD 13.5 billion in 2022, compared to HKD 11.9 billion in 2021[11]. - The after-tax profit increased by 13% to HKD 510.7 million, up from HKD 453.9 million in the previous year[11]. - EBITDA rose by 14% to HKD 1.5 billion, compared to HKD 1.3 billion in 2021[11]. - The operating profit was HKD 839.2 million, with an operating profit margin of 6.2%, up from 5.4% in 2021[11]. - The net debt ratio was 32%, with net debt recorded at HKD 3.7832 billion, an increase from net cash of HKD 265.7 million in 2021[11]. - The return on capital employed (ROCE) improved from 5.1% in 2021 to 5.8%[11]. - The total dividend for 2022 was HKD 201.33 million, a 53.8% increase from HKD 130.87 million in 2021[14]. Employee Statistics - The total number of employees increased by 8.5% to 5,537, primarily due to the integration of ETHOZ employees[12]. - As of December 31, 2022, the total employee count was 9,983 with a turnover rate of 15.0%[99]. - The training participation rate for male employees was 28% with an average training time of 8.87 hours, while female employees had a participation rate of 16% and an average of 2.33 hours[95]. - The average training time for management employees was 6.55 hours, while non-management employees averaged 8.01 hours[95]. - The employee turnover rate for part-time workers was 16.6%, while full-time workers had a turnover rate of 12.6%[100]. Market Performance - In Vietnam, the group's sales increased by 121% compared to 2021, outperforming the market with a TIVPC growth of 30.9%[18]. - In Taiwan, despite a TIVPC decline of 4.2%, the group achieved a sales growth of 30% due to strong demand for the new Forester model[18]. - In the Philippines, the group's sales grew by 88% compared to 2021, significantly outperforming the industry with a TIVPC growth of 30.5%[18]. - In Malaysia, the group recorded a sales growth of 101% with a TIVPC increase of 42.2% due to the extension of sales tax exemptions[18]. - In Thailand, the group's sales grew by 25% against a TIVPC growth of 11.6%[18]. - In Hong Kong, despite strict COVID-19 measures, the group achieved a sales growth of 14% with a TIVPC increase of 4.1%[20]. - In China, the group's sales increased by 74% with a TIVPC growth of 9.5% due to diversification from dealership operations[20]. Corporate Governance - The board of directors consists of four executive directors, two non-executive directors, and five independent non-executive directors, ensuring a balanced governance structure[28]. - The company has adopted the Corporate Governance Code and has complied with most of its provisions during the past year[26]. - The remuneration committee, consisting of two independent non-executive directors, is responsible for reviewing and determining the remuneration packages of executive directors and senior management[25]. - The nomination committee, chaired by an independent non-executive director, is tasked with evaluating board composition and recommending suitable candidates for directorship[25]. - The board meets at least four times a year to manage the company's business and approve key strategies, budgets, and financial performance[28]. - The company has established internal guidelines for significant transactions requiring board approval, including mergers and acquisitions[28]. - The company aims to maintain high standards of corporate governance to protect shareholders' interests and enhance financial performance[26]. Environmental Initiatives - The company is committed to sustainable operations and actively monitors greenhouse gas emissions, although it has not yet identified climate change as a significant ESG issue[58]. - The company aims to reduce water consumption by 8% from the 2021 baseline by 2030, with total water usage in 2022 recorded at 111,965 cubic meters, a 0.76% decrease from 2021[60]. - The company is actively researching the use of new fuel products like e-Fuel to reduce greenhouse gas emissions and plans to replace its fleet with automated electric vehicles[65]. - The company has implemented a water-saving program and has been gradually reducing water usage since 2016, focusing on measures such as "cleaning with wipes instead of washing" to conserve water[57]. - The group plans to reduce packaging material usage by 5% from the 2021 baseline by 2030, with a 0.68% decrease in 2022 compared to 2021[66]. - The group has set an internal target to reduce carbon dioxide emissions by 1% or more annually, focusing on fuel consumption efficiency rather than total volume[66]. Safety and Health - The company reported zero work-related fatalities in 2022, maintaining a death rate of 0%[105]. - The company has implemented safety measures including air quality monitoring and regular safety audits to ensure a safe working environment[98]. - The company encourages continuous learning and invests in employee development through internal and external training programs[102]. - The company has implemented a safety reporting system allowing employees to report safety incidents or suggestions, with a safety committee conducting monthly inspections[133]. - The company achieved a 100% vaccination rate among employees at the workplace to mitigate COVID-19 risks[98]. Community Engagement - The company has extended the adoption period for the "Marco & Jubilee" giraffes in Singapore until 2022, supporting the Methodist Welfare Services (MWS) with funds raised for 21 centers and projects benefiting over 8,000 individuals[147]. - The company has expanded its community clean-up activities in Japan to more locations in 2022, emphasizing its commitment to a clean environment[147]. - The company collected 10.4 kilograms of recycled pull tabs, sufficient to produce ten prosthetic limbs for individuals in need in Thailand[135]. Supply Chain Management - The company has established a strict supply chain management (SCM) system to ensure resource efficiency and compliance with contract agreements[145]. - The company maintains ISO 9001 quality assurance certification for its assembly plant in Thailand[145]. - The company has a process in place to manage technical issues or recalls that may affect vehicle performance or passenger safety[145]. - The company received a limited number of product and service-related complaints during the reporting period, all of which were resolved according to the complaint policy[139].

Financial Performance - The company's total revenue for the fiscal year ended December 31, 2022, was HKD 13,478,667, an increase of 13.5% from HKD 11,864,957 in 2021[2] - Gross profit for the same period was HKD 2,310,143, representing a gross margin of approximately 17.1%, compared to HKD 2,045,319 in 2021[2] - The net profit attributable to shareholders for the year was HKD 510,664, up 12.5% from HKD 453,876 in the previous year[2] - Basic and diluted earnings per share increased to HKD 20.77 from HKD 18.78, reflecting a growth of 10.6%[2] - The company reported a total EBITDA of HKD 1,460,840 thousand for the year, representing a 14.3% increase from HKD 1,278,312 thousand in 2021[18] - The net profit before tax for the year was HKD 775,815 thousand, up from HKD 658,089 thousand in 2021[19] - The company declared a total tax expense of HKD 265,151 thousand for the year, compared to HKD 204,213 thousand in 2021[20] - The company achieved a revenue growth of 14% in 2022, reaching HKD 13.5 billion compared to HKD 11.9 billion in 2021[26] - Net profit after tax increased by 13% to HKD 5.107 billion in 2022, up from HKD 4.539 billion in 2021[26] - Basic earnings per share for 2022 were HKD 0.207, compared to HKD 0.188 in 2021, with no diluted securities affecting the calculation[22] Assets and Liabilities - The company's total assets as of December 31, 2022, amounted to HKD 14,587,550, compared to HKD 13,876,849 in 2021, indicating a growth of 5.1%[4] - Non-current assets decreased to HKD 13,081,219 from HKD 11,840,507, a decline of 10.5%[4] - The company's cash and bank balances increased to HKD 2,587,009 from HKD 2,475,773, a rise of 4.5%[4] - Total liabilities increased to HKD 2,700,970 from HKD 1,793,003, reflecting a significant rise of 50.6%[5] - The net debt ratio as of December 31, 2022, was 32%, with net debt recorded at HKD 37.832 billion[26] - Trade receivables as of December 31, 2022, totaled HKD 1.366 billion, an increase from HKD 981.578 million in 2021[23] - Trade payables as of December 31, 2022, amounted to HKD 1.068 billion, compared to HKD 889.175 million in 2021[24] Revenue Breakdown - Revenue from goods sales reached HKD 5,048,992 thousand, up 9.1% from HKD 4,625,843 thousand in 2021[10] - Revenue from services provided increased to HKD 7,894,714 thousand, a rise of 11.7% compared to HKD 7,065,077 thousand in 2021[10] - Interest income from loans and advances surged to HKD 203,662 thousand, significantly up from HKD 30,084 thousand in 2021[10] - The geographical breakdown of revenue showed Japan contributing HKD 7,429,832 thousand, an increase of 11.7% from HKD 6,648,430 thousand in 2021[11] Strategic Plans and Developments - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[6] - The company plans to expand its distribution network in Southeast Asia, focusing on increasing market share in Thailand and Taiwan[13] - New product development initiatives are underway, particularly in the automotive sector, to enhance service offerings and customer engagement[14] - The ETHOZ Group, acquired in July 2022, has become a wholly-owned subsidiary, enhancing the company's diversified business in vehicle leasing and financing services across Singapore, Malaysia, and China[30] - The group anticipates a 60% increase in production output from its joint venture factory in Thailand in 2023 compared to the previous year[34] - The group remains optimistic about improving sales revenue in the next fiscal year, driven by the stabilization of semiconductor shortages and automotive parts supply in Southeast Asia[35] Market Performance - In Singapore, the total industry volume (TIV) decreased by 27% in 2022, with passenger car TIV down 32% and commercial vehicle TIV down 10% due to a significant reduction in Certificate of Entitlement (COE) supply[30] - Nissan's sales in Singapore fell by 58% in 2022, yet it maintained its position as one of the top ten best-selling passenger car brands[30] - In Hong Kong, despite strict COVID-19 measures, Subaru achieved a 14% sales increase with a 4.1% growth in passenger car TIV[32] - In China, the group's sales grew by 74% compared to 2021, despite a 9.5% increase in TIVPC[32] - In Malaysia, the group recorded a 101% sales increase with a 42.2% growth in TIVPC due to extended sales tax exemptions and post-COVID-19 economic recovery[34] Corporate Governance - The company has adopted high standards of corporate governance in line with the Hong Kong Stock Exchange's guidelines[42] - The chairman and CEO, Mr. Chen Yongshun, continues to play a crucial role in the company's operations[42] - The company has implemented self-management and oversight measures to enhance regulatory effectiveness[42] - The audit committee reviewed the financial reports for the year ended December 31, 2022[41] Shareholder Information - The annual general meeting is scheduled for May 25, 2023, at 11:00 AM[39] - The company will suspend share registration from May 22 to May 25, 2023, to ensure shareholder eligibility for the annual general meeting[38] - The proposed final dividend is subject to approval at the upcoming annual general meeting[38] - The company will suspend share registration from June 2 to June 5, 2023, for the proposed final dividend[38] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the year[39] Other Financial Information - The company reported a total comprehensive income of HKD 7,480, compared to a loss of HKD 20,692 in the previous year[3] - The company recorded an unrealized loss of HKD 222 million on investments classified at fair value through other comprehensive income[28] - The financial figures for the year ended December 31, 2022, were consistent with the amounts in the draft consolidated accounts[40]

Financial Performance - The group's revenue for the first half of 2022 was HKD 6.48 billion, a 5% increase from HKD 6.156 billion in the same period of 2021[4] - The group's profit after tax for the first half of 2022 was HKD 172.9 million, up 120% from HKD 78.6 million in the same period of 2021[4] - EBITDA increased by 14% to HKD 558 million from HKD 489 million in the previous year[4] - Operating profit for the same period was HKD 271,171, up from HKD 179,761 in 2021, indicating a significant increase of about 50.9%[14] - The profit before tax for the six months ended June 30, 2022, was HKD 276,702,000, compared to HKD 184,075,000 in 2021, indicating an increase of about 50.4%[34] - The company reported a net profit of HKD 130,560,000 for the six months ended June 30, 2022, compared to a profit of HKD 27,094,000 for the same period in 2021, representing a significant increase[23] - The company's total comprehensive income for the period was HKD 130,560,000, a significant increase from HKD 27,094,000 in the same period last year, representing a growth of approximately 383.5%[37] Cash and Liquidity - The net cash position as of June 30, 2022, was HKD 376.2 million, compared to HKD 265.7 million at the end of 2021[4] - The company's cash and bank balances as of June 30, 2022, were HKD 2,773,685, compared to HKD 2,475,773 at the end of 2021, showing an increase of approximately 12.1%[19] - Cash and cash equivalents increased to HKD 2,551,856,000 as of June 30, 2022, from HKD 2,332,654,000 at the end of the previous period[26] - Cash generated from operating activities was HKD 116,388,000 for the six months ended June 30, 2022, down from HKD 263,602,000 in the same period of 2021[26] - The company reported a net cash inflow from investing activities of HKD 243,398,000, compared to HKD 23,016,000 in the previous year[26] Revenue Breakdown - Revenue from goods sales was HKD 2,377,863,000, while service revenue increased to HKD 4,018,890,000 from HKD 3,669,850,000 year-on-year[30] - The geographical revenue breakdown showed Japan as the largest market with HKD 3,809,112,000, followed by Singapore with HKD 522,977,000[31] - In China, the group's automotive sales increased by 44% year-on-year, benefiting from diversification in dealership channels[8] - In Malaysia, sales increased by 196% year-on-year due to the extension of sales tax exemptions[9] - In Singapore, the total industry volume (TIV) decreased by 39% year-on-year in the first half of 2022, with Nissan's sales down 59%[7] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.025 per share for the first half of 2022[5] - The interim dividend declared is HKD 0.025 per share, totaling HKD 50,330,000, an increase from HKD 30,200,000 in the previous year[59] - The company declared dividends of HKD 100,665,000 during the period[24] - Basic earnings per share for the six months ended June 30, 2022, were HKD 0.065, compared to HKD 0.013 in 2021, marking a significant increase of 400%[37] Operational Challenges and Outlook - The company expects improved sales revenue in the next fiscal year, driven by a gradual recovery from COVID-19 and stabilization in semiconductor supply for automotive parts[11] - The company anticipates a brighter outlook for the second half of 2022 due to increased demand stemming from vehicle supply shortages[12] - The logistics business, ZERO, recorded a revenue increase of 10% to HKD 3.8 billion in the first half of 2022[10] - ZERO's net profit in the first half of 2022 decreased by 23% year-on-year due to a downturn in the Japanese automotive distribution market, rising fuel costs, and the depreciation of the yen against the Hong Kong dollar[11] - The company is implementing a fuel surcharge system to mitigate fluctuations in fuel costs, reflecting its proactive approach to managing operational challenges[11] Financial Position and Liabilities - The total liabilities decreased from HKD 3,460,411 in 2021 to HKD 4,047,589 in 2022, indicating a rise in financial obligations[20] - The company's total assets included an investment in Subaru Corporation valued at HKD 1,589,463,000, which accounted for 9.4% of the group's total assets[40] - The company reported a capital commitment of HKD 26,928,000 as of June 30, 2022, down from HKD 71,482,000 as of December 31, 2021, indicating a significant reduction in future financial obligations[57] Corporate Governance - The company’s major shareholder, Chen Chang United Limited, holds 35.05% of the total issued shares, indicating a strong ownership concentration[65] - The company’s executive director, Chen Yongshun, holds a personal interest of 152,460,000 shares, representing 29.15% of the total issued shares[62] - All directors confirmed compliance with the securities trading requirements during the first half of the year as per the Listing Rules Appendix 10[68] - No violations of the Corporate Governance Code were reported for the six months ending June 30, 2022[69] - The chairman's extensive expertise in the automotive industry is recognized as crucial for the group's operations[69]

Financial Performance - The group's total revenue for 2021 was HKD 11.9 billion, a decrease of 4% compared to 2020, primarily due to a 17% drop in automotive sales[5] - Operating profit increased from HKD 274.11 million in 2020 to HKD 646.23 million in 2021, with an operating profit margin rising from 2.2% to 5.4%[5] - The net profit attributable to shareholders for 2021 was HKD 3.78 billion, compared to HKD 851.7 million in 2020[5] - The group recorded a return on capital employed (ROCE) of 5.1% for 2021, up from 2.4% in 2020[5] - The total dividend payment for 2021 was HKD 1.30865 billion, with a final dividend of HKD 0.05 per share[8] - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous year[1] - The company reported a net loss from foreign exchange of HKD 62,446,000 in 2021, compared to a gain of HKD 66,754,000 in 2020[173] - The total comprehensive income for the year was HKD (7,480) thousand, a decrease from HKD (145,196) thousand in 2020, indicating an improvement in the loss situation[163] Employee and Workforce - The number of employees decreased by 6% from 5,407 in 2020 to 5,105 in 2021[6] - Total number of employees as of December 31, 2021, is 9,490, representing a 4.2% increase from the previous year[66] - The percentage of male employees is 85.5% (8,101), while female employees account for 14.5% (1,389)[66] - Full-time employees make up 39.5% (3,750) of the workforce, while part-time employees constitute 60.5% (5,740)[66] - The average training completion rate for male employees is 42%, while for female employees it is 31%[68] - The company reported zero work-related deaths in 2021, maintaining a death rate of 0%[70] - The company encourages continuous learning and invests in employee development through internal and external training programs[67] Corporate Governance - The board of directors is committed to high standards of corporate governance and has adopted relevant guidelines to protect shareholder interests[15] - The board meets at least four times a year to manage the group's business and approve major financial and operational strategies[17] - The board of directors meets approximately once a quarter, with special meetings convened for urgent matters[18] - The attendance record for board meetings in 2021 shows that all executive directors attended 100% of the meetings[19] - The remuneration committee consists of two independent non-executive directors, responsible for reviewing and determining the compensation packages for executive directors and senior management[22] - The nomination committee, chaired by an independent non-executive director, is tasked with reviewing the board's structure and recommending suitable candidates for directorship[23] - The company adopted a board diversity policy in August 2013, which is monitored by the nomination committee to enhance performance quality[24] - The board is responsible for establishing and reviewing corporate governance policies and practices[25] Environmental, Social, and Governance (ESG) Initiatives - The company has identified significant ESG issues, including resource utilization, emissions, and labor standards, and is actively engaging with stakeholders to address these concerns[41] - The total energy consumption for the company in 2021 was 264,151,732 kWh, with a goal to reduce energy consumption by 5% by 2030 compared to the 2021 baseline[47] - The total water consumption in 2021 was 112,828 cubic meters, with a target to reduce water usage by 8% by 2030 compared to the 2021 baseline[49] - The total carbon dioxide emissions in 2021 were 66,015 tons, with an internal target to reduce emissions by at least 1% annually[59] - The total hazardous waste disposed of in 2021 was 57,929 tons, with a goal to reduce hazardous waste by 5% by 2030 compared to the 2021 baseline[58] - The company is committed to complying with environmental regulations and supporting local governments in achieving zero emissions goals[43] - The ESG committee is responsible for evaluating and managing significant ESG issues, ensuring alignment with stakeholder expectations and corporate strategy[39] Market and Sales Performance - In Hong Kong, automotive sales increased by 43% in 2021 despite supply chain issues due to microchip shortages[10] - Sales in Thailand declined by 51% due to COVID-19 restrictions, but a gradual recovery is expected with production stabilizing by the end of 2021[14] - The Philippines saw an 8% revenue growth in 2021, attributed to positive consumer response to new models like the Subaru Evoltis and Subaru Outback[14] - Japan's ZERO division recorded a revenue increase of 5% to HKD 6.6 billion, partly due to the consolidation of logistics subsidiary Lu You Logistics[14] - The group anticipates a 30% increase in sales in 2022 with the launch of its first electric Subaru SUV in China[10] - The group anticipates a further increase in production and sales in 2022, driven by the launch of the new Subaru XV model featuring the popular Eyesight safety technology[14] Financial Position and Assets - Non-current assets increased to HKD 11,840,507 thousand in 2021, up from HKD 10,159,737 thousand in 2020, representing a growth of approximately 16.6%[165] - Current assets decreased to HKD 5,496,753 thousand in 2021 from HKD 7,779,617 thousand in 2020, a decline of approximately 29.3%[166] - Total liabilities decreased to HKD 3,460,411 thousand in 2021 from HKD 4,133,489 thousand in 2020, a decrease of approximately 16.3%[166] - The company's total equity attributable to shareholders decreased to HKD 10,807,235 thousand in 2021 from HKD 10,855,525 thousand in 2020, a slight decrease of approximately 0.4%[169] - The company reported a significant increase in investment properties, which rose to HKD 4,065,018 thousand, indicating a strategic focus on real estate assets[167] Compliance and Risk Management - The company is committed to complying with the Securities and Futures Ordinance and will disclose applicable internal information to the public as soon as reasonably practicable[30] - The company has established a compliance department focused on anti-corruption training for the board and senior management in 2021[79] - The group reported zero corruption cases to the ESG committee in 2021, indicating effective anti-corruption measures[80] - The company has not reported any regional violations of environmental laws and regulations during the reporting period[64] - The company aims to ensure proper management of hazardous waste in compliance with local laws and regulations[54] Related Party Transactions - The total annual transaction amount under the TCMH agreement reached HKD 19,397,000, remaining within the annual cap of HKD 33,960,000[119] - The total annual transaction amount for all related party transactions was HKD 27,264,000 for the year ended December 31, 2021, within the adjusted annual cap of HKD 49,890,000[126] - The independent non-executive directors confirmed that related party transactions were conducted under normal business terms and were fair and reasonable[126] - The company has complied with the disclosure requirements set forth by the listing rules regarding related party transactions[126]

Financial Performance - The group's revenue for the first half of 2021 was HKD 6.156 billion, a 6% increase compared to HKD 5.784 billion in the same period of 2020[5]. - EBITDA increased by 55% to HKD 489 million from HKD 315 million in the previous year[5]. - The operating profit was HKD 179.8 million with an operating profit margin of 2.9%, compared to 0.5% in the same period of 2020[5]. - Net profit after tax was HKD 78.6 million, a significant recovery from a loss of HKD 46.1 million in 2020[5]. - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 263,602, compared to HKD 39,630 for the same period in 2020[26]. - The total comprehensive income for the six months ended June 30, 2021, was a loss of HKD 132,392, compared to a loss of HKD 224,073 for the same period in 2020[25]. - The company reported a profit before tax of HKD 370,830 thousand for the six months ended June 30, 2021, compared to HKD 259,735 thousand in 2020, which is an increase of approximately 42.8%[36]. - The total profit before tax for the six months ended June 30, 2021, was HKD 184,075,000, compared to HKD 18,965,000 for the same period in 2020, representing an increase of approximately 868%[42]. Revenue Breakdown - Revenue from goods sold was HKD 2,394,349 thousand for the six months ended June 30, 2021, compared to HKD 2,394,880 thousand in 2020, showing a slight decrease of 0.02%[32]. - Revenue from services provided increased to HKD 3,669,850 thousand in 2021 from HKD 3,282,713 thousand in 2020, marking a growth of approximately 11.8%[32]. - Revenue from investment property rental was HKD 49,906 thousand in 2021, up from HKD 40,201 thousand in 2020, reflecting an increase of about 24.5%[32]. - Revenue from Singapore increased to HKD 845,753 thousand in 2021 from HKD 650,354 thousand in 2020, representing a growth of approximately 30%[33]. Shareholder Information - The board declared an interim dividend of HKD 0.015 per share for the first half of 2021[5]. - The company declared an interim dividend of HKD 0.015 per share, totaling HKD 30,200,000, an increase from HKD 20,133,000 in 2020[66]. - The interim dividend will be paid to shareholders listed on the register as of September 10, 2021[66]. - As of June 30, 2021, the total equity held by executive director Mr. Chen Yongshun is 586,937,672 shares, representing 29.15% of the total issued shares[69]. - Major shareholder Chen Chong United Limited holds 705,819,720 shares, accounting for 35.05% of the total issued shares[71]. Debt and Equity - The net debt to total equity ratio improved to 1.1% from 1.7% in the previous year[5]. - The return on capital employed (ROCE) increased to 1.5% from 0.4% in the first half of 2020[5]. - The total equity attributable to shareholders was HKD 10,682,929, down from HKD 10,855,525 at the end of 2020, reflecting a decline in shareholder value[21]. - As of June 30, 2021, the total equity attributable to shareholders was HKD 11,972,895, a decrease from HKD 12,181,125 as of December 31, 2020[25]. Operational Challenges - In Singapore, the Subaru business faced a double-digit sales decline due to strict vehicle emission surcharges[7]. - The group anticipates ongoing challenges in the automotive sector due to geopolitical risks and changing consumer preferences towards ride-hailing services instead of vehicle ownership[11]. - The impact of the prolonged COVID-19 crisis is expected to have a significant effect on the group's year-end performance, making future forecasts challenging[11]. Asset Management - Non-current assets as of June 30, 2021, totaled HKD 10,107,789, slightly down from HKD 10,159,737 at the end of 2020[17]. - Current assets amounted to HKD 7,725,587, a decrease from HKD 7,779,617 at the end of 2020, indicating a tightening liquidity position[18]. - The total assets as of June 30, 2021, were HKD 12,550,877, reflecting a decrease from previous periods[25]. - Cash and bank balances as of June 30, 2021, were HKD 2,433,795,000, slightly down from HKD 2,539,772,000 as of December 31, 2020[49]. Compliance and Governance - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[73]. - All directors confirmed compliance with the securities trading requirements during the first half of the year[74]. - The board of directors has not been informed of any violations of the Corporate Governance Code during the reporting period[75]. - The board believes that the current structure enhances leadership continuity and allows for effective decision-making[75].

Financial Performance - The group's revenue for 2020 was HKD 12.3 billion, a decrease of 15.2% compared to 2019, primarily due to a 35% decline in automotive distribution and retail sales[6]. - Operating profit fell to HKD 274 million, with an operating profit margin dropping from 3.9% in 2019 to 2.2% in 2020[6]. - Net profit attributable to shareholders was HKD 9.51 million, a significant decrease of 95.5% year-on-year[6]. - The group's return on capital employed (ROCE) was 2.4%, down from 4.5% in 2019[6]. - Total revenue for the year 2020 was HKD 12,319,495 thousand, a decrease of 15.2% compared to HKD 14,533,351 thousand in 2019[133]. - Gross profit for 2020 was HKD 2,352,440 thousand, down 15.4% from HKD 2,780,904 thousand in 2019[133]. - The net profit for the year 2020 was HKD 85,171 thousand, a significant decline of 72.6% from HKD 311,052 thousand in 2019[134]. - Basic and diluted earnings per share for 2020 were HKD 0.47, compared to HKD 10.58 in 2019, reflecting a decrease of 95.6%[133]. Debt and Equity - The net debt-to-equity ratio improved to 1.7% in 2020 from 6.1% in 2019, with net debt amounting to HKD 205.535 million[6]. - The company's total equity attributable to shareholders was HKD 10,855,525 thousand in 2020, down from HKD 11,316,507 thousand in 2019, a decrease of 4.1%[139]. Market Performance - The automotive sales in Singapore dropped by 33% for Nissan and also saw a decline for Subaru due to the pandemic[11]. - The group anticipates a 10% increase in new car sales in Singapore for 2021, driven by the recovery of the Certificate of Entitlement (COE) bidding[11]. - In China, total new car sales declined by 7% compared to 2019, with the company's sales dropping by 26% in 2020 due to negative impacts[12]. - The group's sales in Thailand declined compared to the previous year, but there is cautious optimism for recovery in 2021 due to the vaccine rollout and government infrastructure focus[14]. - The Philippine automotive market contracted by approximately 40% in 2020 due to the pandemic, impacting the group's sales significantly[14]. Operational Changes - Employee count decreased by 7.9% to 5,407 by the end of 2020, compared to 5,868 in 2019[8]. - The company aims to create a more streamlined and responsive operational structure by reducing redundancy[13]. - The company is focused on expanding its market presence, leveraging the experience of its board members in various sectors[67][70]. Corporate Governance - The board of directors is dedicated to high standards of corporate governance to protect shareholder interests and enhance financial performance[15]. - The board consists of four executive directors, one non-executive director, and four independent non-executive directors, ensuring independent oversight with independent directors making up at least one-third of the board[17]. - The board met four times in 2020, with all members attending all meetings, demonstrating strong governance and engagement[19]. - The remuneration committee, composed of two independent non-executive directors, is responsible for reviewing and determining the compensation packages for executive directors and senior management based on group performance and individual contributions[22]. Environmental and Social Responsibility - The group is committed to sustainable operations and effective resource utilization, actively monitoring emissions and complying with environmental regulations[37]. - The group has established an ESG committee to enhance existing policies and engage with stakeholders, including customers and suppliers[35]. - The company actively promotes the 3Rs (Reduce, Reuse, Recycle) to minimize resource waste and collaborates with government-certified suppliers to comply with relevant regulations[43]. - The company has implemented water-saving measures, including the installation of automatic faucets and regular monitoring of water usage efficiency in Singapore[41]. Audit and Compliance - The independent auditor confirmed that the consolidated financial statements reflect the group's financial position and performance accurately as of December 31, 2020[118]. - The assessment of the net realizable value of inventory is considered a key audit matter due to its significant impact on the financial statements[122]. - The audit procedures included evaluating the design and implementation of internal controls related to accounts receivable valuation and credit control processes[124]. Future Outlook - The company is optimistic about the launch of new models such as the Subaru Evoltis and Outback in 2021[13]. - The long-term outlook for the Chinese automotive market remains positive due to its large population and relatively high cultural and wealth levels[13]. - The group anticipates ongoing uncertainty in the global automotive supply chain and inventory imbalances in 2021[14].

Financial Performance - Total revenue for the first half of 2020 was HKD 5.784 billion, a decrease of 16% compared to HKD 6.911 billion in the same period of 2019[10] - EBITDA dropped by 38% to HKD 315.2 million, down from HKD 511.3 million in the first half of 2019[10] - Net loss after tax was HKD 46.1 million, compared to a profit of HKD 143.2 million in the first half of 2019[10] - Revenue for the six months ended June 30, 2020, was HK$5,784,063 thousand, a decrease of 16.3% from HK$6,911,487 thousand in 2019[17] - Gross profit for the same period was HK$1,065,704 thousand, down 22.1% from HK$1,368,293 thousand in 2019[17] - The company reported a net loss of HK$46,117 thousand for the six months ended June 30, 2020, compared to a profit of HK$143,180 thousand in 2019[19] - Total comprehensive income for the period was HK$(669,557) thousand, a significant decline from HK$412,660 thousand in 2019[20] - The company reported a decrease in operating profit to HK$28,458 thousand from HK$227,784 thousand in the previous year[17] - The company reported a net loss of HKD 75,285 for the six months ended June 30, 2020, compared to a profit of HKD 97,137 for the same period in 2019[30] - The total comprehensive income for the period was HKD (224,073), reflecting a significant decline compared to the previous period[31] Debt and Equity - The net debt-to-equity ratio increased to 9.8% from 6.1% as of December 31, 2019[10] - The return on capital employed (ROCE) fell to 0.4% from 1.7% in the first half of 2019[10] - The company's total equity attributable to shareholders was HK$10,446,773 thousand, a decrease from HK$11,316,507 thousand in 2019[24] - As of June 30, 2020, the total equity attributable to shareholders was HKD 12,148,435, a decrease from HKD 12,550,877 as of January 1, 2020[27] Cash Flow and Assets - The company's cash and bank balances as of June 30, 2020, were HK$2,053,603 thousand, down from HK$2,450,254 thousand in 2019[22] - Current assets decreased to HK$8,253,658 thousand from HK$9,260,233 thousand in the previous year[22] - Non-current assets as of June 30, 2020, totaled HK$9,854,521 thousand, down from HK$10,264,750 thousand as of December 31, 2019[21] - The net cash used in operating activities was HKD 39,630, contrasting with a net cash outflow of HKD 157,254 in the prior year[32] - The company experienced a net cash outflow from investing activities of HKD 144,485, compared to HKD 109,353 in the previous year[32] - The company reported cash flow from operations of HKD 1,919,639,000 for the six months ended June 30, 2020, compared to HKD 2,363,597,000 for the same period in 2019[53] Revenue Breakdown - Revenue from goods sold was HKD 2,394,880 thousand, down 25.4% from HKD 3,211,910 thousand in the previous year[36] - Revenue from services provided was HKD 3,282,713 thousand, a decline of 8.4% from HKD 3,584,607 thousand in 2019[36] - Revenue from property sales was HKD 18,789 thousand, with no revenue recorded in the same period of 2019[36] - The geographical breakdown of revenue showed a significant drop in Singapore, from HKD 1,101,488 thousand in 2019 to HKD 650,354 thousand in 2020, a decrease of 41.0%[37] Market Conditions - Sales in the Philippines dropped over 50% due to COVID-19 and strict lockdown measures[13] - The automotive market in China continued to show negative growth, but the company aims to expand its customer base and product line[12] - The ongoing COVID-19 crisis is expected to have a significant impact on the company's year-end performance[16] Dividends and Shareholder Information - The company declared dividends amounting to HKD 181,198 during the reporting period[31] - The company declared an interim dividend of HKD 0.01 per share for the current period, down from HKD 0.02 per share in 2019, resulting in a total of HKD 20,133,000 for 2020 compared to HKD 40,266,000 in 2019[48] - The total interim dividend declared was 20,133,000 HKD for 2020, compared to 40,266,000 HKD in 2019, marking a 50% reduction in dividend payout[70] Investments and Fair Value - The company recorded an unrealized loss of HKD 398 million on investments, compared to an unrealized gain of HKD 255 million in the same period last year[11] - The fair value loss for the six months ended June 30, 2020, was primarily due to a decrease in the fair value of the investment in Subaru Corporation by HKD 385,272,000[51] - The fair value of financial instruments measured at fair value as of June 30, 2020, was 1,880,619,000 HKD, compared to 2,276,590,000 HKD as of December 31, 2019, reflecting a decline of approximately 17.4%[63] Compliance and Governance - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[77] - All directors confirmed compliance with the securities trading requirements during the first half of the year[78] - The company has not been informed of any violations of the Corporate Governance Code during the reporting period[79]