Business Strategy and Operations - AFMG completed the sale of its wholly-owned subsidiary Ideenion Automobil AG for a total cash consideration of €15 million to enhance operational efficiency and focus on its luxury electric vehicle business[5]. - The group signed a strategic cooperation agreement with Guangzhou JuWan Technology Co., Ltd. to develop and apply an ultra-fast charging battery system for luxury electric vehicles[4]. - AFMG's collaboration with Shanghai University of Science and Technology aims to explore new technologies and experiences related to smart mobility, focusing on smart cabin projects and smart mobility databases[3]. - The group is strategically divesting existing businesses, with a recent agreement to sell part of its lending operations for a total consideration of HK$408 million, allowing for a more focused approach to smart mobility opportunities[9]. - AFMG is preparing to leverage the significant potential of the global electric vehicle market, emphasizing its expertise in developing high-performance luxury electric vehicles[17]. - The company is committed to redefining the automotive sector by creating a new generation of efficient, intelligent, and stylish vehicles, supported by its advanced engineering capabilities[16]. - The company is establishing strategic partnerships with key industry players, including Divergent Technologies, Inc. and EV Power Holding Limited, to create an advanced mobility ecosystem[17]. - The Apollo brand has become a leader in the high-performance supercar market, appealing to ultra-high-net-worth individuals with its innovative designs and engineering excellence[16]. Financial Performance - The group's revenue for the six months ended June 30, 2023, decreased by approximately 72.5% to about HKD 127,600,000 from approximately HKD 463,400,000 in the previous period[22]. - The travel services segment generated revenue of approximately HKD 3,600,000, down from HKD 171,800,000 in the same period last year, primarily due to reduced licensing income and ongoing development of a next-generation supercar[22]. - Gross profit for the period was approximately HKD 21,800,000, with a gross margin of about 17.1%, down from 28.9% in the previous period, mainly due to a decrease in high-margin licensing income[22]. - The group reported a loss attributable to owners of approximately HKD 77,400,000 for the period, compared to a profit of HKD 5,800,000 in the same period last year[23]. - The company reported a total comprehensive loss of HKD 162,428,000 for the six months ended June 30, 2023, compared to a loss of HKD 92,195,000 for the same period in 2022[100]. - The loss attributable to the owners of the company was HKD 161,137,000 for the first half of 2023, compared to HKD 94,956,000 in the previous year[100]. - The company recorded a profit of HKD 9,363,000 during the reporting period, with a significant foreign exchange loss of HKD 101,960,000 from overseas operations[94][95]. - The group reported a revenue of HKD 127,571,000 for the six months ended June 30, 2023, a decrease from HKD 463,361,000 for the same period in 2022[62]. - The gross profit for the same period was HKD 21,771,000, down from HKD 133,688,000 in the previous year[62]. - The group incurred a loss of HKD 82,438,000 for the six months ended June 30, 2023, compared to a profit of HKD 9,363,000 in the same period of 2022[62]. Assets and Liabilities - The group’s cash and cash equivalents amounted to approximately HKD 117,200,000 as of June 30, 2023, up from HKD 52,500,000 as of December 31, 2022[32]. - The total current assets and current liabilities were approximately HKD 1,266,000,000 as of June 30, 2023[33]. - The total current assets amounted to approximately HKD 680,700,000, compared to HKD 1,340,500,000 as of December 31, 2022[43]. - The net current assets included inventory of approximately HKD 102,400,000, accounts receivable and other receivables of approximately HKD 402,500,000, and loans receivable of approximately HKD 167,600,000[43]. - The total liabilities to equity ratio as of June 30, 2023, was approximately 2.0%, slightly down from 2.1% as of December 31, 2022[46]. - The total interest-bearing bank borrowings amounted to approximately HKD 81,400,000 as of June 30, 2023, down from HKD 88,200,000 as of December 31, 2022[45]. - The company's net asset value decreased to HKD 4,098,335,000 from HKD 4,260,786,000, reflecting a decline of approximately 3.8%[109]. - The total liabilities related to assets classified as held for sale increased to HKD 585,143,000 from HKD 548,815,000, indicating a rise of about 6.6%[107]. - The company's goodwill increased to HKD 1,740,594,000 from HKD 1,641,611,000, representing a growth of approximately 6%[104]. - Current liabilities totaled HKD 680,679,000, an increase of 10% from HKD 618,890,000 as of December 31, 2022[107]. Shareholder Information - The total number of issued shares as of June 30, 2023, was 9,613,098,562[80]. - The company’s chairman holds 170,000,000 shares, representing 1.77% of the total equity[76]. - The company’s co-chairman holds 2,275,545,343 shares, representing 23.67% of the total equity[76]. - The company’s vice-chairman holds 42,400,000 shares, representing 0.44% of the total equity[76]. - Major shareholders include Weima Automobile Holdings Limited, holding 2,275,545,343 shares, which accounts for 23.67% of the total shares[131]. - The company’s major shareholder, He Jingmin, holds 956,332,474 shares, representing 9.95% of the total shares[131]. Employee and Compensation - As of June 30, 2023, the company had 68 employees, with related employee costs amounting to approximately HKD 41,300,000, a decrease from HKD 111,200,000 for the same period in 2022[151]. - The company’s employee compensation aligns with market trends and is reviewed annually based on individual performance[151]. - The company aims to attract and retain qualified participants through the 2023 Share Option Scheme, which includes employees and related entity participants[127]. Cash Flow and Dividends - The company reported a net cash flow from operating activities of (29,894) thousand HKD for the six months ended June 30, 2023[168]. - The net cash flow used in investing activities was (14,624) thousand HKD, with proceeds from the sale of property, plant, and equipment amounting to 50,000 thousand HKD[168]. - The net cash flow from financing activities was 44,925 thousand HKD, including new bank borrowings of 46,659 thousand HKD and repayment of bank borrowings of (14,013) thousand HKD[168]. - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[159]. Financial Reporting and Standards - The financial data presented is based on the Hong Kong Financial Reporting Standards and covers the period from January 1, 2023, to June 30, 2023[171]. - The company has adopted new and revised Hong Kong Financial Reporting Standards for the preparation of the interim financial data[174]. - The company has implemented new and revised Hong Kong Financial Reporting Standards, which have no impact on its financial position or performance due to the absence of business combinations during the reporting period[180]. - The company has applied the amendments to HKAS 12 regarding deferred tax assets and liabilities, which also had no impact on its financial position or performance[182]. Segment Performance - The company operates through three reportable segments: (a) Technical Solutions, (b) Lending Division, and (c) Retail and Wholesale of jewelry products and watches[190]. - Total revenue from external customers reached HKD 127,571,000 for the six months ended June 30, 2023[195]. - The company experienced a segment loss of HKD 62,459,000 across its various business divisions[195]. - Revenue from jewelry products was HKD 3,604,000, while travel technology generated HKD 103,245,000[195]. - The segment performance for other goods showed a loss of HKD 17,978,000[195].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈 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，概不對因本公佈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。 （於開曼群島註冊成立之有限公司） （股份代號：860） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 佈 Apollo智慧出行集團有限公司（「AFMG」或「本公司」）董事（「董事」）會（「董 事 會」）公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月（「本 期 間」）之 未 經 審 核 簡 明 綜 合 中 期 業 績，連 同 截 至 二 零 二 二 年 三 月 三 十 一 日 止 六 個 月 之 比 較 數 字。本 期 間 的 未 經審核中期簡明綜合財務資料經由本公司審核委員會（「審核委員會」） 審 閱。 ...

Electric Vehicle Market Growth - Global sales of new electric vehicles reached 10.5 million units in 2022, a year-on-year increase of 55%[6] - In China, sales of pure electric vehicles and plug-in hybrid electric vehicles grew by 82% to over 6.1 million units, representing approximately 59% of global sales[6] - The electric vehicle market in China accounted for approximately 64% of global production in 2022[6] - The global electric vehicle market is projected to grow from USD 278.75 billion in 2022 to USD 365.72 billion in 2023, with a compound annual growth rate (CAGR) of 31.2%[40] - The Chinese government has extended the vehicle purchase tax exemption for eligible new energy vehicles until the end of 2023, supporting industry growth[7] Luxury and Supercar Market - The luxury car market was valued at $461.24 billion in 2022, with a projected compound annual growth rate of 4.90%, reaching $614.59 billion by 2028[9] - The top supercar market is expected to grow at a compound annual growth rate of 10.5%, reaching $31.78 billion by 2030[8] - The demand for high-performance and luxury experiences continues to drive growth in the top supercar industry[8] - The introduction of electric technology and advancements in design are expected to propel the top supercar industry in the coming years[8] Company Financial Performance - The company reported a revenue increase of approximately 46.6%, rising from about HKD 528.6 million to approximately HKD 774.9 million for the fifteen months ending December 31, 2022[45] - The mobility services segment generated revenue of approximately HKD 218.8 million, up from HKD 104.8 million in the previous period, driven by authorized income from the vehicle platform and outsourced engineering services[45] - The gross profit for the period was approximately HKD 159.7 million, with a gross margin of about 20.6%, down from 24.9% in the previous period due to reduced margins on jewelry and other products[45] - Operating profit for the same period was HKD 289,185,000, a significant recovery from a loss of HKD 349,386,000 in the previous year[91] - The group's revenue for the fifteen months ended December 31, 2022, was HKD 774,888,000, representing a 46.6% increase compared to HKD 528,559,000 for the year ended September 30, 2021[91] Strategic Developments and Partnerships - The company aims to leverage its partnership with WM Motor to develop luxury smart electric vehicles and future mobility technologies, creating an advanced mobility ecosystem[42] - The company has entered into an investment agreement with Shanghai United Investment Co., Ltd. to develop and produce a luxury electric vehicle model, enhancing its commercial capacity[32] - The company is developing an advanced luxury mobility ecosystem in collaboration with strategic partners, enhancing its automotive value chain services[20] - The company solidified its position in the high-end mobility sector by developing its own brand of luxury electric vehicles, with WM Motor becoming the largest shareholder in 2022[12] Corporate Governance and Management - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of business ethics and governance practices[167] - The board held a total of 8 meetings and 2 shareholder meetings during the reporting period, with full attendance from key members[173] - The company emphasizes continuous professional development for directors, ensuring they stay updated on relevant laws and regulations[176] - The company is committed to enhancing its internal controls and procedures in line with regulatory changes and best practices[167] - The company has a governance committee responsible for developing and reviewing corporate governance policies since November 24, 2017[177] Employee and Operational Insights - The company is committed to providing competitive compensation and development opportunities for employees, enhancing overall performance[82] - As of December 31, 2022, the group had 139 employees, down from 193 as of September 30, 2021[72] - The gender ratio among the group's employees, including senior management, is approximately 2.6:1 (male to female) as of December 31, 2022[197] - The company aims to enhance gender diversity among senior staff by providing relevant training and support[197] Risk Management - The group identified significant operational risks primarily associated with its assets located in China, which could impact future performance[86] - Financial risks are managed as detailed in the financial statements, indicating a structured approach to risk management[87] Shareholder Information - As of December 31, 2022, the total number of issued shares of the company was 9,613,098,562[123] - The percentage of equity held by the chairman, Mr. He Jingfeng, is 1.66%, with a total of 159,352,000 shares[121] - Mr. Shen Hui, as the founder of a discretionary trust, holds 23.67% of the equity, amounting to 2,275,545,343 shares[121] Future Outlook - The company plans to focus resources on developing high-performance supercars and luxury smart electric vehicles, following the sale of its watch wholesale and lending businesses for HKD 50 million and HKD 408 million, respectively[38] - The company in the future will continue to focus on the expansion of the smart electric vehicle market and technological innovation[154] - The company will continue to optimize its financial structure to support future growth strategies and investment plans[163]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公 佈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。 （於開曼群島註冊成立之有限公司） （股份代號：860） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 十 五 個 月 之 年 度 業 績 公 佈 及 建 議 修 訂 組 織 章 程 大 綱 及 細 則 由 於 財 政 年 度 結 算 日 由 九 月 三 十 日 更 改 為 十 二 月 三 十 一 日（自 二 零 二 二 年 八 月 二 十 二 日 起 生 效），Apollo智 慧 出 行 集 團 有 限 公 司 （「AFMG」或「本 公 司」）董 事（「董 事」）會（「董 事 會」）謹 此 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 十 五 個 月（「本 期 間」）之 綜 合 業 績，連 同 截 至 二 零 二 一 年 九 月 三 十 日 ...

Financial Performance - Revenue for the twelve months ended September 30, 2022, was HKD 689,926,000, an increase of 30.6% from HKD 528,559,000 in the previous year[5] - Gross profit for the same period was HKD 163,433,000, up 24.2% from HKD 131,508,000 year-over-year[5] - The company reported a profit of HKD 41,899,000 for the period, a significant recovery from a loss of HKD 359,353,000 in the previous year[5] - Basic earnings per share for the current period was HKD 0.46, compared to a loss per share of HKD 4.51 in the previous year[5] - The adjusted profit before tax for the total group was HKD 39,173 thousand, a recovery from a loss of HKD 356,209 thousand in the previous year[40][44] - The company reported a basic loss attributable to ordinary equity holders of HKD 37,821,000 for the twelve months ended September 30, 2022, compared to a loss of HKD 349,589,000 for the previous year, indicating a significant improvement[83] - The company’s diluted loss per share was HKD 60,075,000 for the current period, compared to a diluted loss of HKD 390,986,000 for the previous year, showing a notable reduction in losses[83] Assets and Liabilities - Total assets as of September 30, 2022, were HKD 3,989,407,000, compared to HKD 3,804,068,000 in the previous year, reflecting a growth of 4.9%[14] - Current liabilities decreased to HKD 577,931,000 from HKD 1,277,595,000, indicating improved liquidity management[14] - The company's net assets increased to HKD 3,904,979,000 from HKD 3,639,582,000, representing a growth of 7.3% year-over-year[14] - The company’s total liabilities as of September 30, 2022, were HKD 3,639,582 thousand, reflecting an increase from the previous year[20] - The company’s accounts payable increased to HKD 116,564,000 as of September 30, 2022, compared to HKD 82,735,000 the previous year, reflecting a rise of approximately 40.9%[105] Cash Flow and Investments - The net cash flow used in operating activities for the twelve months ended September 30, 2022, was HKD (281,727) thousand, compared to HKD (7,127) thousand for the previous year[26] - The company recorded a net cash outflow from investing activities of HKD (96,548) thousand for the twelve months ended September 30, 2022[28] - The cash and cash equivalents at the end of the period were HKD 135,443 thousand, down from HKD 150,053 thousand at the end of the previous year[28] - The company’s non-current assets included investments in non-listed companies totaling HKD 1,100,758,000 as of September 30, 2022, up from HKD 1,003,844,000 the previous year, reflecting a growth of approximately 9.7%[86] - The company’s loans receivable, net of impairment, stood at HKD 766,041,000 as of September 30, 2022, slightly up from HKD 765,686,000 the previous year[96] Market Expansion and Strategy - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[5] - The company plans to expand its market presence, particularly in mainland China, where it generated HKD 429,626 thousand in total customer contract revenue[51] - The company aims to launch new products in the upcoming fiscal year to drive revenue growth[20] - The company expects to continue its market expansion and product development strategies in the upcoming fiscal year[64] - The company has initiated a strategy to acquire complementary businesses to strengthen its market position[20] Revenue Segmentation - The revenue from the Mobility Technology Solutions segment was HKD 185,579 thousand, up from HKD 104,845 thousand, indicating a year-over-year increase of about 77.1%[49] - The Jewelry Products, Watches, and Other Goods segment generated revenue of HKD 465,899 thousand, compared to HKD 377,246 thousand in the prior year, reflecting a growth of approximately 23.4%[49] - Total customer contract revenue reached HKD 482,091 thousand, with HKD 104,845 thousand from automotive services and HKD 377,246 thousand from jewelry products[58] - Revenue from the Chinese mainland amounted to HKD 344,012 thousand, while Hong Kong contributed HKD 83,689 thousand[62] Financial Instruments and Fair Value - The fair value of financial instruments is assessed to be reasonably close to their carrying amounts due to their short maturity periods[124] - The company’s financial instruments include various valuation methods, such as scenario analysis and option pricing models, to determine fair values[127] - The fair value of non-listed investments in preferred shares increased by HKD 1,277,000 due to a 1% rise in the risk-free rate[133] - The fair value of non-listed investments in convertible bonds decreased by HKD 2,170,000 with a 1% increase in the risk-free rate[133] - The total fair value of financial assets measured at fair value was HKD 1,150,993, while the total for the previous year was HKD 1,003,844[133] Industry Trends - In the first nine months of 2022, China's new energy vehicle sales accounted for 62% of global sales, with cumulative sales of pure electric vehicles increasing by 98.2% to approximately 3 million units[191] - Global sales of pure electric vehicles reached 2 million units in Q3 2022, a 75% increase year-over-year, with projections indicating a rise to 13% of total global light vehicle sales in 2022[190] - The global luxury car market is projected to grow from approximately $15 million units in 2021 to a compound annual growth rate of 8% to 14% by 2031[196] - The global automotive engineering services outsourcing market is expected to reach $74 billion in 2022, with a projected compound annual growth rate of 20.5% from 2022 to 2032[197] - The China Passenger Car Association has raised its 2022 forecast for new energy vehicle sales to approximately 6.5 million units, reflecting strong market growth[191]

Automotive Market Trends - The global automotive market is projected to reach 66 million units in 2021, with electric vehicle sales showing a strong growth momentum, nearly 2.5 times the sales of the same period in 2020[7]. - In the first half of 2021, global electric vehicle sales reached approximately 2.6 million units, representing a year-on-year growth of 160%, with China accounting for about 1.1 million units, or 12% of the global total[7]. - The global passenger electric vehicle sales are expected to reach 5 million units by the end of 2021, indicating a compound annual growth rate of approximately 86% since 2011[8]. - The electric vehicle industry is expected to see strong growth momentum, driven by declining prices and increased model availability, with a significant market shift anticipated by 2030[47]. Company Growth and Strategy - The company continues to strengthen its market position as a leading mobility technology solutions provider, focusing on three main business pillars: engineering services outsourcing, technology development, and automotive manufacturing[14]. - The company completed the acquisition of Ideenion, a German automotive engineering service provider, enhancing its capabilities in advanced mobility solutions[15]. - A new production facility was opened in Wolfsburg, Germany, strategically located near Volkswagen's headquarters, to strengthen the company's position in the engineering services outsourcing market[18]. - The company aims to enhance its engineering services outsourcing business by strengthening collaborations with existing clients and exploring opportunities with new clients in the electric vehicle sector[48]. - The collaboration with WM Motor is expected to elevate the group's engineering services and new energy vehicle business to new heights, enhancing product design and quality[52]. Financial Performance - The company's revenue increased by approximately 47.8% year-on-year to about HKD 528.6 million, compared to HKD 357.7 million last year[55]. - Gross profit for the year was approximately HKD 131.5 million, with a gross margin of about 24.9%, down from 35.2% last year[56]. - The company reported a loss of approximately HKD 359.4 million for the year, unchanged from the previous year[59]. - The operating loss for the year was HKD (349,386,000), an increase from HKD (69,713,000) in the previous year[183]. - The net loss for the year was HKD (359,353,000), slightly lower than the loss of HKD (359,363,000) in 2020[183]. Investments and Capital Management - The company raised approximately HKD 374 million through the issuance of new shares, strengthening its financial position for future strategic partnerships[37]. - The group raised HKD 163.8 million (approximately USD 21 million) through the issuance of convertible bonds to expand into mobility technology solutions and related business opportunities[42]. - The company aims to strengthen its financial position and expand its capital base through the issuance of convertible bonds, which will not immediately dilute existing shareholders' equity[157]. - Approximately 90% (around HKD 76,500,000) of the funds will be used for investment opportunities to expand into automotive technology solutions and related businesses[159]. Research and Development - The R&D team achieved breakthroughs in developing proprietary technologies and updating existing technologies[19]. - The flat powertrain developed by Apollo Advanced Technology enables electric vehicles to operate on an 800V system, featuring a unique dual-motor layout for enhanced flexibility[20]. - The company is developing proprietary technologies, including a next-generation 800V silicon carbide dual inverter system, to solidify its leading position in the field[49]. Customer and Supplier Relationships - The top five customers accounted for approximately 39% of total sales, with the largest customer contributing about 17%[192]. - The top five suppliers represented around 67% of total procurement, with the largest supplier accounting for approximately 50%[193]. Employee and Operational Insights - As of September 30, 2021, the number of employees was 193, down from 204 in 2020[162]. - The company acknowledges the importance of maintaining good relationships with employees, customers, and business partners for sustainable development[171]. Licensing and Partnerships - An authorization agreement with De Tomaso Automobili Limited includes a minimum total licensing fee of USD 10,000,000 (approximately HKD 78,000,000)[199]. - The annual cap for licensing fees payable by De Tomaso to Apollo Automobil is set at USD 5,000,000 (approximately HKD 39,000,000) for the current year[200]. - The company plans to leverage the partnership with De Tomaso to enhance its business strategy for creating immediately usable platforms for future mobility[199].

Electric Vehicle Market Trends - The global sales of plug-in electric vehicles reached approximately 1,784,000 units in the first nine months of 2020, representing an 11% increase compared to the same period in 2019, capturing about 3.4% of the total automotive market[8]. - In China, overall automotive sales increased by approximately 8% year-on-year in September 2020, with the plug-in segment experiencing a significant growth of about 66%[9]. - The global electric vehicle market is projected to see a decline of 18% in sales to 1.7 million units in 2020 due to COVID-19, but long-term growth is expected to accelerate, with electric vehicles projected to account for 58% of new car sales by 2040[32]. Company Acquisitions and Partnerships - The company completed the acquisition of Sino Partner Global Limited in March 2020, rebranding itself as Apollo Future Mobility Group Limited to reflect its strategic positioning as a full-service automotive mobility solutions provider[12]. - The company announced plans to acquire Ideenion Automobil AG, a German automotive mobility solutions provider, to enhance its capabilities in providing cutting-edge technology solutions[12]. - A joint venture was established with Jiangsu Jinpeng Group to accelerate business expansion in the new energy vehicle market, with ownership stakes of approximately 57%, 29%, and 14% respectively[24]. - The company completed the acquisition of 86.06% of Apollo, a European supercar manufacturer, on March 17, 2020, enhancing its position in the high-performance automotive sector[19]. Technological Innovations - The company launched several advanced technologies and innovations during the year, including an 800V silicon carbide dual inverter, urban logistics vehicles, electric scooters, and autonomous driving development chassis[13]. - GLM announced the development of an 800V silicon carbide dual inverter in collaboration with ROHM, which is expected to enhance power output and reduce charging time compared to traditional 400V IGBT inverters[27]. - The new urban logistics vehicle is designed for cost and time efficiency, featuring a modular battery system for quick battery swaps, and is expected to begin production in 2022[28]. Financial Performance - The group's revenue decreased by approximately 33.3% year-on-year to about HKD 357.7 million, down from HKD 536.4 million last year[37]. - Gross profit for the year was approximately HKD 125.9 million, with a gross margin increase to about 35.2% from 26.6% last year[38]. - The net loss for the year decreased to approximately HKD 359.4 million from HKD 619.3 million last year[42]. - Cash and cash equivalents as of September 30, 2020, were approximately HKD 184.5 million, down from HKD 447.6 million last year[57]. Corporate Governance and Compliance - The company has maintained high standards of corporate governance and business ethics, aiming to enhance shareholder value[180]. - The board has adopted the code set out in Appendix 14 of the Listing Rules, continuously reviewing and improving internal controls and procedures[180]. - The company has complied with the corporate governance code as per listing rules during the year[152]. - The audit committee consists of four independent non-executive directors, meeting the minimum requirement of one-third of the board[154]. Research and Development Commitment - The company is committed to research and development in the mobility industry, allowing external contractors to use its internally developed technologies in exchange for licensing fees[13]. - The company aims to provide a seamless, comprehensive solution platform for the global mobility market, from conception and design to prototype delivery[13]. - The company is committed to providing cleaner, safer, and smarter mobility solutions to create a sustainable future for automotive transportation[35]. Market Position and Strategy - The ultra-luxury supercar market remained relatively unaffected by the COVID-19 pandemic, as it primarily targets ultra-high-net-worth individuals and car collectors[10]. - The company aims to leverage its collaboration with De Tomaso to enhance its business strategy for creating immediately usable platforms for future mobility[25]. - The company aims to maintain long-term relationships with suppliers and contractors to ensure stable business development[81]. Shareholder Information - The total number of shares issued by the company was 7,170,198,562[114]. - Major shareholder He Jingmin holds 1,797,196,474 shares, accounting for 25.06% of the issued shares[136]. - The company has a significant concentration of ownership, with several entities holding 9.00% of the shares each, indicating potential influence over corporate decisions[136].

Automotive Industry Trends - The global automotive industry is rapidly changing, with a significant trend towards outsourcing to enhance efficiency and reduce production costs[8] - In 2018, China accounted for approximately 56% of global sales of plug-in electric vehicles, with new energy vehicle sales reaching 1.256 million units, a year-on-year increase of about 61.7%[9] - The company anticipates strong demand for advanced processes and technologies from small and medium-sized automotive brands in China and Asia, as the market opens up[21] Company Strategy and Partnerships - The company aims to become a leading automotive technology solution provider by focusing on new energy solutions and services[9] - A strategic partnership was established with Agile Group to promote the development of new energy vehicle-related technology industrial zones in China[12] - The partnership with Agile Group is expected to leverage the company's expertise in the new energy vehicle supply chain and Agile's experience in the Chinese real estate market[12] - The company is implementing a series of innovative measures to expand its business in the new energy vehicle sector[9] - The company agreed to acquire an 86.06% stake in Apollo, a European supercar brand, enhancing its strategy to become a global leader in automotive technology solutions[14] - The acquisition of Apollo is anticipated to create substantial synergies with the company's future automotive business investments[14] - The company plans to acquire 100% equity of Ideenion Automobil AG, a leading German automotive solutions provider, to enhance its capabilities in high-end technology solutions for internal combustion and new energy vehicles[15] - A joint venture has been established in China with GLM and Jiangsu Jimai New Energy Vehicle Co., Ltd., where the company holds approximately 14% equity, focusing on the design, R&D, and production of new energy vehicles and related components[16] Financial Performance - The company's revenue decreased by approximately 25.2% year-on-year to about HKD 536.4 million, down from HKD 717 million in the previous year, primarily due to a decline in jewelry and watch sales[23] - Gross profit for the year was approximately HKD 142.6 million, with a gross margin of about 26.6%, down from 30.0% in the previous year, attributed to reduced margins from jewelry and watch sales[23] - The company reported a loss of approximately HKD 619.3 million for the year, an increase from last year's loss of about HKD 110.3 million, primarily due to goodwill impairment and reduced gross profit in the jewelry and watch segment[28] - The operating loss for the year was HKD (621,564,000), worsening from a loss of HKD (103,522,000) in the previous year[93] - The pre-tax loss was HKD (625,603,000), compared to a loss of HKD (109,107,000) in 2018, indicating a significant decline in financial performance[93] - The total assets increased slightly to HKD 4,553,309,000 from HKD 4,497,816,000 in 2018, while total liabilities rose to HKD 509,644,000 from HKD 462,577,000[96] - The net asset value remained stable at HKD 4,043,665,000, compared to HKD 4,035,239,000 in 2018[96] Cost Management and Expenses - General and administrative expenses decreased by approximately 33.8% to about HKD 166.7 million, down from HKD 252 million in the previous year, due to reduced share-based payment expenses[24] - R&D costs were reduced to approximately HKD 21.2 million from HKD 87.8 million, as the company strategically reallocated resources to more promising projects[24] - Employee costs for the year amounted to approximately HKD 87,659,000, a decrease from HKD 173,031,000 in the previous year, with a total of 221 employees as of September 30, 2019[54] Corporate Governance and Management - The company has a strong management team with over 28 years of accounting and finance experience represented in the board[65] - The company is focused on expanding its market presence and enhancing corporate governance through its various committees[66] - The company has been involved in mergers and acquisitions to drive growth and strategic development in the market[59] - The board includes members with significant international experience, particularly in the satellite and telecommunications sectors[69] - The company aims to leverage its diverse board expertise to navigate market challenges and capitalize on growth opportunities[69] - The company has established a corporate governance committee responsible for developing and reviewing corporate governance policies and practices since November 24, 2017[188] - The company has a clear division of responsibilities between the Chairman and the CEO, with the Chairman focusing on overall leadership and business strategy, while the CEO manages overall operations and development, including mergers and acquisitions[191] Risk Management and Compliance - The company has identified various risks and uncertainties that may impact its financial condition and operational performance[85] - The company has a financial risk management strategy outlined in the financial statements[87] - The audit committee is responsible for assisting the board in providing independent opinions on the effectiveness of the company's financial controls, internal controls, and risk management systems[170] - The company has a structured approach to board member appointments, with specific terms for non-executive directors, ensuring governance and accountability[192] Share Capital and Dividends - The company did not recommend any dividend payment for the year, consistent with the previous year[39] - The total number of shares issued by the company as of September 30, 2019, is 7,170,198,562 shares[122] - The company reported no dividends for the fiscal year, consistent with the previous year[80] Environmental and Social Responsibility - The group is committed to environmental sustainability and efficient resource utilization[168] - The company is committed to maintaining strong relationships with employees, customers, and business partners to ensure sustainable development[81]

Electric Vehicle (EV) Strategy - The company aims to transform into a comprehensive electric vehicle (EV) technology solutions provider, leveraging the growth momentum of China's new energy vehicle market[7]. - The acquisition of GLM Co., Ltd. in 2017 marked the company's entry into the EV sector, focusing on powertrain technology and engineering solutions[8]. - Investment in Divergent Technologies, Inc. established 3D metal printing technology as an innovative method for automotive manufacturing, significantly reducing capital expenditure and improving profit margins[9]. - The company recognizes a significant shortage in EV charging infrastructure in China, with plans to invest in EV Power Holding Limited to capitalize on this market potential[10]. - A joint venture with Shanghai United Investment Co., Ltd. aims to produce at least 10,000 electric vehicles annually using Divergent's design and 3D printing technology[12]. - The company plans to expand its EV-related business, including charging solutions, in response to supportive government policies in China[14]. - The company aims to leverage synergies from its investments to enhance its position in the electric vehicle market and expand its value chain[24]. - The company plans to establish a joint venture in Shanghai to design and assemble electric vehicles, targeting an annual production capacity of at least 10,000 vehicles[23]. - The company plans to leverage the investment in TOM Group Limited to create synergies and potential collaboration opportunities in the electric vehicle charging business across China[53]. - Approximately 90% of the net proceeds from the December 2018 subscription, estimated at HKD 152,300,000, will be used for potential acquisitions or investments in electric vehicle-related businesses or technologies[56]. Financial Performance - The company's revenue increased by approximately 31.4% year-on-year to about HKD 717 million, compared to HKD 545.5 million in the previous year[27]. - The gross profit for the year was approximately HKD 215 million, with a gross margin of about 30.0%, down from 41.0% in 2017[27]. - The operating loss for the year was HKD (103,522,000), an improvement from a loss of HKD (698,162,000) in the previous year[92]. - The pre-tax loss for the year was HKD (109,107,000), compared to a loss of HKD (702,280,000) in 2017, indicating a significant reduction in losses[92]. - The net loss attributable to the company's owners was HKD (94,096,000), down from HKD (700,128,000) in the prior year, reflecting a 86.6% improvement[92]. - Other income and net gains increased by approximately 34.1% to about HKD 86,900,000 from approximately HKD 64,800,000 last year, mainly due to fair value gains on financial assets[28]. - Sales and distribution expenses decreased by approximately 21.2% to about HKD 36,300,000 from approximately HKD 46,100,000 last year, attributed to stricter cost control measures[28]. - General and administrative expenses increased by approximately 109.4% to about HKD 252,000,000 from approximately HKD 120,300,000 last year, primarily due to an increase in share-based payments related to the company's share option plan[28]. Investments and Acquisitions - The company invested in EV Power, acquiring a total of 9,019,918 ordinary shares and 81,700,524 preferred shares, holding approximately 35.79% of EV Power's issued share capital[22]. - The company also invested in Divergent, holding about 30% of its issued share capital, which focuses on 3D printing technology for automotive structures[20]. - The net proceeds from the December 2017 subscription amounted to approximately HKD 376,000,000, with about HKD 273,000,000 allocated for the investment in Divergent[50]. - The remaining net proceeds from the December 2017 subscription are intended for general working capital and future investment opportunities[50]. - The company aims to solidify its foundation in the electric vehicle industry through the funds raised from the December 2018 subscription[56]. Corporate Governance and Management - The company has appointed Mr. He Zhijie as the CEO since October 9, 2017, responsible for overall management, business strategy, and M&A activities[64]. - The company has a strong board with members holding significant experience in finance and corporate governance, including Mr. Zhang Zhenming, who has over 21 years of accounting and finance experience[69]. - The company emphasizes corporate governance, with multiple committees in place, including audit and remuneration committees[69]. - The company has a diverse management team with expertise across various industries, including consumer products, retail, and telecommunications[65]. - The company has been actively involved in mergers and acquisitions, with Mr. He leading acquisition activities in the Greater China region[65]. - The company has established an Investment Committee to oversee investment strategies and decisions[191]. - The board consists of six members, three of whom are independent non-executive directors, contributing to a diverse governance structure[187]. - The company has adopted a board diversity policy since September 1, 2013, considering various factors such as age, cultural background, and professional experience[187]. Employee and Operational Insights - The total employee count as of September 30, 2018, was 240, an increase from 215 in the previous year[58]. - Employee costs for the year amounted to approximately HKD 173,000,000, significantly up from HKD 49,100,000 in the previous year[58]. - The company is committed to providing a safe and fair working environment, promoting employee development, and ensuring competitive compensation and benefits[80]. - The company emphasizes the importance of maintaining strong relationships with employees, customers, and business partners to support ongoing development[80]. Risk Management and Compliance - The company continues to face significant business risks primarily due to its operations being concentrated in China, which may impact future performance[84]. - Financial risk management details are provided in the financial statements, indicating a structured approach to managing potential financial uncertainties[85]. - The company has confirmed compliance with applicable laws and regulations without significant violations impacting operations[151]. - The company has complied with the code regarding risk management and internal control systems, ensuring their effectiveness and sufficiency[195]. Shareholder Relations - The management team is committed to seizing market opportunities to deliver optimal returns for shareholders[14]. - The company expresses gratitude to shareholders and partners for their continued support and trust[14]. - The company did not recommend any dividend payment for the year, consistent with last year[40]. - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the year[102].