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告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 CENTENARY UNITED HOLDINGS LIMITED 世 紀 聯 合 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1959） 截至二零二二年十二月三十一日止年度之 年度業績公告 財務摘要 • 收益約人民幣1,998.7百萬元，較二零二一年度同期（「同比」）減少約人民 幣53.1百萬元。 • 汽車銷售收益約為人民幣1,732.1百萬元，同比減少約人民幣56.9百萬元。 • 毛利約人民幣100.4百萬元，同比減少約人民幣18.5百萬元。 • 權益股東應佔虧損約為人民幣23.6百萬元。 ...

Revenue and Sales Performance - For the six months ended June 30, 2022, Centenary United Holdings Limited recorded revenue of approximately RMB 777.5 million, a decrease of about 20.6% compared to the same period in 2021[14]. - New car sales revenue was approximately RMB 633.4 million (5,095 units), down 24.0% from RMB 833.2 million (7,079 units) in the previous period[15]. - Revenue from motor vehicle sales contributed approximately RMB 654.2 million, accounting for about 84.1% of total revenue, while comprehensive automotive services generated approximately RMB 123.3 million, representing about 15.9% of total revenue[33]. - The company's revenue for the six months ended June 30, 2022, was RMB 777,458,000, a decrease of 20.6% compared to RMB 979,587,000 for the same period in 2021[122]. - Revenue from automobile sales was RMB 654,167,000, down 23.7% from RMB 856,278,000 year-on-year[153]. Profitability and Loss - Gross profit increased by 18.7% to approximately RMB 53.4 million, with a gross margin rising to 6.9%[14]. - The overall gross profit for the reporting period was approximately RMB 53.4 million, an increase of about 18.7% from RMB 45.0 million in the previous period, with the overall gross margin rising from approximately 4.6% to 6.9%[37]. - The company reported a loss before tax of RMB 5,510,000, an improvement from a loss of RMB 9,665,000 in the prior year, indicating a reduction in losses by 43.5%[122]. - The net loss for the period was RMB 7,841,000, slightly improved from RMB 8,134,000 in the previous year, reflecting a decrease of 3.6%[122]. - Basic and diluted loss per share was RMB 1.43, compared to RMB 1.58 in the same period last year, showing a reduction in loss per share by 9.5%[122]. Market and Industry Outlook - The domestic automotive market is expected to see a sales volume of over 27 million units in 2022, with new energy vehicle sales projected to reach a historical high of 5.5 million units, representing a year-on-year growth of over 56%[13]. - The automotive industry in China is recovering, with June 2022 showing a year-on-year increase of 28.2% in production and 23.8% in sales, indicating a return to normalcy in the supply chain[10]. - The outlook for the second half of the year anticipates a recovery in the passenger car market and continued rapid growth in the new energy vehicle sector, with a focus on comprehensive new energy mobility solutions[26]. Operational Developments - The company plans to open 4 new new energy stores and has 3 more under construction, aiming to increase the total number of operational stores to 37 by the third quarter of 2022[14]. - The group aims to establish 2,000 charging stations by 2024, with 39 stations and 192 charging piles already built, providing a total of 338 charging points[29]. - The company plans to enhance its presence in the used car market with a one-stop used car complex in Zhongshan, expecting over 20 car dealers and more than 250 used car display spaces[30]. Financial Position and Cash Flow - Cash and cash equivalents decreased to approximately RMB 93.4 million from RMB 159.2 million, a reduction of about RMB 65.8 million[45]. - The net cash flow from operating activities for the six months ended June 30, 2022, was a loss of RMB 57,515,000, compared to a gain of RMB 5,143,000 in the same period of 2021[142]. - The cash flow from investing activities resulted in a net outflow of RMB 29,505,000, up from RMB 14,763,000 in the previous year[142]. - The financing activities generated a net cash inflow of RMB 65,620,000, contrasting with a net outflow of RMB 16,889,000 in the prior year[142]. Shareholding and Corporate Governance - As of June 30, 2022, the company had a total of 373,916,000 shares held by Mr. Luo, representing 74.01% of the total shares[77]. - The company has 33,198,000 unexercised share options under the share option scheme, accounting for approximately 6.57% of the issued share capital as of the report date[82]. - The company has adopted the corporate governance code and has complied with all applicable provisions, except for the combined roles of the Chairman and CEO[105]. - The board believes that the insurance claim rejection will not have a significant adverse impact on the company's financial condition and business operations[69]. Employee and Administrative Expenses - Employee benefits expenses (excluding directors' remuneration) increased to RMB 44,914,000, up 11.0% from RMB 40,191,000 year-on-year[162]. - Administrative expenses rose to approximately RMB 37.4 million, an increase of about RMB 4.3 million, primarily due to higher salaries and reduced rental discounts[40]. Inventory and Trade Payables - Inventory levels rose significantly to RMB 312,273,000, compared to RMB 215,591,000, marking an increase of approximately 45%[127]. - Trade payables decreased to RMB 115,388,000 from RMB 141,245,000, a decline of about 18.3%[127]. - The group maintained strict control over its outstanding receivables to minimize credit risk, with no significant credit concentration risk identified as of June 30, 2022[187].

Financial Performance - In 2021, the total revenue of Centenary United Holdings Limited increased by 7.3% to approximately RMB 2,051.8 million compared to 2020[14]. - The overall motor vehicle sales revenue reached RMB 1,789.1 million, an increase of 8.1% year-on-year, with new car sales revenue of RMB 1,737.6 million and a sales volume of 14,650 units, representing increases of approximately 6.9% and 0.9% respectively[14]. - The gross profit decreased by 8.7% to approximately RMB 119.0 million in 2021[14]. - The net profit for the year was approximately RMB 2.2 million, with shareholders' profit amounting to approximately RMB 2.7 million[14]. - The group's sales cost for 2021 was RMB 1,932.8 million, an increase of approximately 8.4% from RMB 1,782.3 million in the previous year[62]. - The overall gross profit margin decreased from approximately 6.8% in the previous year to about 5.8% in 2021[62]. - Other income and gains increased by approximately RMB 17.1 million or 78.1% to RMB 39.0 million, mainly due to increased commission income from auto loans and financing[63]. - The group's profit for the year was approximately RMB 2.2 million, a decrease of RMB 19.3 million compared to approximately RMB 21.5 million in the previous year[69]. Market Trends and Strategies - The company is focusing on the dual circulation strategy to drive growth in the automotive sector amid the challenges posed by the pandemic and global supply chain issues[12]. - The company believes that the transition towards new energy vehicles is a necessary and correct move in response to market demands and environmental considerations[11]. - The domestic ride-hailing business is expected to grow at a compound annual growth rate (CAGR) of 28% from 2021 to 2025, while traditional taxi and bus services are projected to grow at only -1% and 3% respectively[25]. - The company aims to strengthen its position in the green ride-hailing business as part of its future development strategy[13]. - The company plans to actively seek new partnerships to capture market share in the electric vehicle sector in the Greater Bay Area[60]. New Energy Vehicles and Charging Infrastructure - The number of new energy vehicles in China reached 7.84 million, with sales of new energy passenger vehicles amounting to 3.52 million in 2021, driving overall passenger vehicle sales growth[12]. - The group established 21 charging stations with a total of 121 charging points in the Greater Bay Area by the end of 2021, enhancing the electric vehicle sales network[20]. - The company plans to build approximately 60 stations with around 600 charging points in 2022, aiming for a total of 720 charging points by the end of the year to support electric vehicle sales and green ride-hailing services[31]. - The group plans to focus on electric vehicle business as a key development strategy, including dealership, charging network, and ride-hailing services[49]. Used Car Market - In 2021, the total volume of used car transactions in China reached 17.585 million units, a year-on-year increase of 22.6%, with a transaction value of RMB 113.169 billion, up 27.3% year-on-year[18]. - The group's used car sales revenue in 2021 was approximately RMB 514 million, a significant increase of 71.3% compared to the previous year[18]. - The company is focusing on expanding its used car business in Zhongshan, where the car ownership has reached over 1.5 million, but the used car transaction volume was only over 60,000 in 2021, indicating a significant market opportunity[28]. - The company aims to leverage a one-stop used car platform and various sales models, including consignment and auction, to capture a larger market share in Zhongshan and expand to other cities in the Greater Bay Area[28]. Corporate Governance and Compliance - The company emphasizes the importance of compliance with relevant laws and regulations in its operations, confirming adherence in all significant aspects for the fiscal year 2021[118]. - The company is committed to environmental protection and has implemented strict measures to comply with current environmental laws and regulations[113]. - The company has confirmed compliance with the corporate governance code as per the listing rules[195]. - The board confirmed that all independent directors are independent according to the annual independence confirmation under Listing Rule 3.13[176]. Employee and Shareholder Engagement - The company has approximately 902 employees as of December 31, 2021, an increase from 837 employees in the previous year[87]. - The company has established a clear career development path for employees, ensuring regular training and skill enhancement opportunities[115]. - The board is committed to considering dividend distribution at least twice a year, based on operational performance and financial conditions[122]. - The company is committed to enhancing shareholder value, with plans to increase dividends by H% in the upcoming fiscal year[94]. Future Outlook and Investments - The company provided a positive outlook for the next quarter, projecting revenue growth of A% and an increase in user engagement metrics[94]. - Strategic acquisitions are planned to strengthen market position, with a focus on companies that complement existing services[94]. - The company is investing in R&D for new technologies, allocating $D million to enhance product offerings and improve operational efficiency[94]. - The total planned allocation of funds is HKD 105.2 million, with HKD 46.0 million already utilized and HKD 59.2 million remaining[83].

Revenue and Sales Performance - The group recorded revenue of approximately RMB 979.6 million, an increase of about 39.0% compared to the previous period[13] - Motor vehicle sales revenue (including new and used cars) was approximately RMB 856.3 million, up about 43.6% from approximately RMB 596.4 million in the previous period[14] - New car sales revenue was approximately RMB 833.2 million (7,079 units sold), an increase of about 42.1% from RMB 586.5 million (5,272 units sold) in the previous period[15] - Luxury car brands such as Jaguar and Land Rover sold 108 units, generating revenue of approximately RMB 44.6 million, a significant increase of 92.2% compared to the previous period[15] - Used car sales reached 487 units, with sales revenue of approximately RMB 23.1 million, a 131% increase from approximately RMB 10.0 million (230 units sold) in the previous period[18] - The revenue from comprehensive automotive services was approximately RMB 121.4 million, an increase of 11.8% compared to RMB 108.6 million in the previous period[19] - The revenue from repair services was approximately RMB 101.7 million, up 27.6% from RMB 79.7 million in the previous period, accounting for about 10.4% of total revenue[23] - The company recorded revenue of approximately RMB 979.6 million, an increase of about RMB 274.6 million or 39.0% compared to the previous period[37] - Vehicle sales contributed approximately RMB 856.3 million to total revenue, accounting for about 87.4% of total revenue[37] - Total revenue from customer contracts for the six months ended June 30, 2021, was RMB 979,587,000, representing a 39% increase from RMB 705,034,000 in the same period of 2020[152] - Revenue from automobile sales was RMB 856,278,000, up 43% from RMB 596,447,000 year-on-year[152] Profitability and Financial Performance - The group's gross profit decreased by 28.0% to approximately RMB 45.0 million, with a gross margin of about 4.6%, down 48.3%[13] - The gross profit decreased to approximately RMB 45.0 million, down about 28.0% from approximately RMB 62.5 million in the previous period, resulting in a gross margin of about 4.6%[39] - The company reported a loss of approximately RMB 8.1 million for the period, compared to a profit of RMB 8.1 million in the previous period[46] - The company reported a total comprehensive loss of RMB 8,055,000 for the period, compared to a loss of RMB 8,134,000 in the previous period, indicating a slight improvement[121] - The company experienced a net loss before tax of RMB 9,665,000, contrasting with a profit of RMB 15,764,000 in the prior year[139] - The net loss attributable to equity holders of the parent was RMB 7,921,000, compared to a profit of RMB 8,306,000 in the prior year[107] Expenses and Costs - The company's sales cost was RMB 934.6 million, an increase of approximately RMB 292.1 million or 45.5% compared to the previous period[39] - Selling and distribution expenses rose to approximately RMB 30.8 million, an increase of about RMB 8.4 million or 37.5% compared to the previous period[41] - Administrative expenses increased to approximately RMB 33.1 million, up about RMB 9.0 million, primarily due to higher salaries and rent expenses[44] - Employee benefits expenses, excluding directors' remuneration, rose to RMB 40,191,000, up 44% from RMB 27,958,000 in the prior year[163] - Financing costs decreased to RMB 5,795,000 from RMB 8,198,000, a reduction of 29% year-on-year[166] Assets and Liabilities - Total assets less current liabilities as of June 30, 2021, were RMB 272,412,000, down from RMB 377,946,000 at the end of 2020[118] - Non-current assets totaled RMB 171,535,000, an increase from RMB 166,864,000 at the end of 2020[116] - Current liabilities decreased to RMB 359,924,000 from RMB 437,108,000 at the end of 2020[116] - The company's cash and cash equivalents at the end of the period were RMB 12,966,000, down from RMB 46,313,000 at the end of the previous period[141] - Trade payables and notes payable totaled RMB 74,037,000 as of June 30, 2021, compared to RMB 195,470,000 at the end of 2020, reflecting a reduction of approximately 62.1%[193] - Contract liabilities from customer advances decreased to RMB 34,421,000 from RMB 61,392,000, a decline of about 43.9%[196] - The company's total equity attributable to shareholders was approximately RMB 249.0 million as of June 30, 2021, compared to RMB 253.8 million as of December 31, 2020[51] Market and Industry Trends - The Chinese automotive market saw a total sales volume of 12.9 million vehicles in the first half of 2021, representing a year-on-year growth of 25.6%[9] - The sales volume of new energy vehicles reached 1.2 million units in the first half of 2021, a year-on-year increase of 223%[11] - The second-hand car market is expected to become a new growth engine for the automotive industry in the Greater Bay Area, supported by recent policy changes promoting cross-city transactions[32] Strategic Initiatives and Future Plans - The company aims to expand its new energy vehicle business and explore new business opportunities in response to increasing penetration rates of new energy vehicles[32] - The company has established 15 charging stations with a total of 80 charging points in Zhongshan, with plans to build 50 charging stations and 500 charging points by the end of 2021[30] - The strategic cooperation agreement with Guangzhou Wancheng Wanchong New Energy Technology Co., Ltd. aims to develop a new energy vehicle charging network in the Guangdong-Hong Kong-Macao Greater Bay Area[29] - The company launched its ride-hailing business in June 2021, utilizing GAC Aion electric vehicles for driver recruitment and operational leasing[32] Stock Options and Shareholder Information - The company has adopted a share option scheme to incentivize directors and eligible employees[66] - The company granted stock options totaling 19,500,000 shares on May 21, 2020, and 25,000,000 shares on May 21, 2021, with exercise prices of HKD 0.48 and HKD 0.81 respectively[75] - The total number of shares held by directors and key executives in related companies is disclosed, with Mr. Luo holding 373,916,000 shares[73] - The stock options granted to directors and employees are subject to specific exercise periods and conditions[75] - The company plans to continue its strategy of stock option grants to incentivize employees and directors[93] Compliance and Governance - The audit committee reviewed the interim results and found them to be prepared in accordance with applicable accounting standards[102] - The company maintained a public float of at least 25% of its issued shares as required by listing rules[103] - The company is committed to maintaining compliance with public float requirements as per listing rules[69]

Financial Performance - In 2020, the group recorded motor vehicle sales revenue of RMB 1,655.6 million, a decrease of 7.5% year-on-year[20]. - Total revenue for the year decreased by 7.7% to RMB 1,912.7 million, with gross profit declining by 27.4% to RMB 130.4 million[20]. - The net profit for the year was RMB 21.5 million, down 35.0% compared to 2019, with shareholders' profit attributable to the year reaching RMB 21.4 million, a decline of approximately 35.2%[20]. - New car sales volume was 14,523 units, representing a year-on-year decrease of 14.8%[20]. - The group's gross profit decreased by 27.4% to approximately RMB 130.4 million in 2020 from RMB 179.5 million in 2019[41]. - The company’s net profit for the year was approximately RMB 21.5 million, a decrease of about RMB 11.6 million or 35.0% from RMB 33.1 million in the previous year[73]. - The company recorded revenue of approximately RMB 1,912.7 million for the fiscal year 2020, a decrease of about RMB 159.5 million or 7.7% compared to RMB 2,072.2 million in 2019[63]. Market Trends and Opportunities - The group anticipates growth in the used car market, with a total of 14.3 million used cars traded nationwide in 2020, a year-on-year decline of only 3.9%[18]. - The overall automotive market in China showed signs of recovery, with a 6.5% growth in the economy in the fourth quarter of 2020 compared to the same period in 2019[18]. - The automotive industry is expected to see a domestic demand growth of approximately 3.2% in 2021, with passenger car demand projected to grow by 7.5%[30]. - The Chinese automotive market is expected to see total sales of 26.3 million vehicles in 2021, a year-on-year growth of approximately 4%[57]. - The second-hand car market is anticipated to become a new growth point due to favorable policies, with the company opening its second second-hand car trading center in Zhongshan[59]. Business Expansion and Strategy - The group opened its first Cadillac and Volkswagen New Jetta 4S dealerships, expanding its network to a total of 16 authorized 4S dealership locations[21]. - The group plans to expand its operations in the Greater Bay Area, aiming to replicate its successful business model from Zhongshan to other cities like Zhuhai, Foshan, and Jiangmen[34]. - The company aims to expand its new energy vehicle (NEV) sales and services, with plans to establish a supercharging station expected to be operational in Q2 2021[25]. - The company plans to pursue selective acquisitions of one to two car dealerships in 2020, focusing on potential opportunities in the Greater Bay Area[29]. - The group plans to establish approximately 20 additional automotive quick repair centers in the Zhongshan and Greater Bay Area by the end of 2021[95]. Customer Engagement and Technology - The CUBDIS system has been implemented to leverage customer data, with 200,000 retained customers and nearly 60,000 official WeChat public account users by the end of 2020[26]. - The company has initiated the optimization and upgrade of its information technology system, CUBDIS, focusing on data collection and sampling for customer experience[96]. - The launch of CUBDIS has been delayed due to operational impacts from the COVID-19 pandemic and technical difficulties, requiring additional time for implementation[96]. Financial Management and Cost Control - The group has optimized various financial indicators, including a decrease in total debt-to-equity ratio, while net current assets and cash equivalents have increased[21]. - Financing costs decreased by approximately RMB 2.9 million or 16.5% to RMB 14.7 million, mainly due to reduced interest on bank and other borrowings[72]. - The company’s asset-to-equity ratio improved to approximately 0.8 times as of December 31, 2020, down from 1.3 times in the previous year, attributed to repayment of bank and other borrowings[78]. - The company’s cash and cash equivalents increased to approximately RMB 148.1 million as of December 31, 2020, compared to RMB 143.1 million in the previous year, an increase of about RMB 5.0 million[78]. Corporate Governance and Management - The company has independent non-executive directors with diverse backgrounds, including expertise in media relations, information technology, and risk management[117]. - The board includes members with significant experience in various industries, enhancing the company's governance and oversight capabilities[115]. - The independent directors are responsible for providing independent opinions to the board, ensuring transparency and accountability in decision-making[116]. - The company is focused on expanding its market presence and enhancing operational efficiency through strategic appointments and governance improvements[118]. Environmental and Social Responsibility - The company has implemented strict environmental protection measures to comply with current environmental laws and regulations[127]. - The company recognizes the importance of employee engagement in environmental activities and encourages participation[128]. - The company aims to maintain close relationships with employees, customers, and business partners to enhance service and product quality[129]. Share Options and Employee Compensation - The company adopted a share option scheme on September 16, 2019, granting options for a total of 19,500,000 shares at an exercise price of HKD 0.48 per share[145]. - The share option scheme is valid for 10 years from September 16, 2019[150]. - The company aims to use the share option scheme to retain, motivate, and compensate participants, thereby enhancing the overall value of the company and its shares[146]. Related Party Transactions - Independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[177]. - The auditor issued an unqualified opinion regarding the group's related party transactions, confirming compliance with the relevant agreements and pricing policies[178].

Financial Performance - For the six months ended June 30, 2020, Centenary United Holdings Limited reported revenue of approximately RMB 705.0 million, a decrease of 24.2% compared to the previous period[19]. - The net profit attributable to shareholders decreased by 46.5% to RMB 8.3 million during the reporting period[19]. - Gross profit decreased by 25.9% to approximately RMB 62.5 million, down from RMB 84.4 million in the previous period[19]. - The adjusted profit before tax for the six months ended June 30, 2020, was RMB 15.8 million, a decrease of 61.8% compared to RMB 29.5 million in 2019[53]. - The income tax expense for the reporting period was approximately RMB 7.7 million, down from RMB 8.3 million in the previous period, with an effective tax rate of 48.7% compared to 34.9% in the prior period[54]. - The company reported a net profit of RMB 15,501,000 for the period, with a total comprehensive income of RMB 15,467,000[176]. - Total comprehensive income for the period amounted to RMB 8,200 thousand, compared to RMB 15,467 thousand in the same period last year, reflecting a decrease of 47.0%[164]. Sales and Revenue Breakdown - New car sales totaled 5,272 units, down 34.5% from 8,046 units in the previous period[19]. - Motor vehicle sales, including new and used cars, amounted to approximately RMB 596.4 million, a decline of 26.4% from RMB 810.3 million in the previous period[20]. - In the first half of 2020, the group sold 5,272 new cars, generating revenue of approximately RMB 586.5 million, a decrease of 26.9% compared to the previous period's 8,046 units and RMB 802.1 million[21]. - The second-hand car sales revenue increased by 22.0% to RMB 10.0 million, with 244 units sold, compared to RMB 8.2 million and 230 units in the previous period[24]. - Revenue from comprehensive automotive services was approximately RMB 108.6 million, a decline of 9.7% from RMB 120.2 million in the previous period, primarily due to pandemic-related travel restrictions[25]. - Vehicle sales contributed approximately RMB 596.4 million to total revenue, accounting for 84.6% of total revenue, while other integrated automotive services generated approximately RMB 108.6 million, representing 15.4% of total revenue[43]. Operational Developments - The group opened two new 4S dealership stores in Zhongshan, bringing the total to 16 stores, with an average operation period of about 9 years for existing stores[19]. - The group operates an insurance agency, six quick repair chain outlets, and two used car trading centers, with one center set to open in the fourth quarter of this year[19]. - The company is leveraging the Centenary United Big Data Intelligence System (CUBDIS) to optimize internal management and enhance customer loyalty through integrated automotive services[25]. - The group plans to strengthen its one-stop comprehensive automotive service ecosystem through mergers and acquisitions, aiming to expand vehicle sales and repair networks[36]. - The group anticipates significant growth potential in the automotive aftermarket, driven by the booming used car market and the implementation of VAT reduction policies[36]. Market Outlook - The outlook for the second half of 2020 indicates a potential recovery in the domestic automotive market, supported by government policies and local consumption incentives, including a RMB 600 million subsidy from the Zhongshan government[35]. - In July, China's passenger car sales grew by 7.7% year-on-year to 1.59 million units, marking the fourth consecutive month of positive growth[35]. - The group plans to continue benefiting from various macroeconomic policies and local initiatives aimed at boosting automotive consumption[35]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2020, amounted to approximately RMB 94.5 million, a decrease of RMB 48.6 million from RMB 143.1 million as of December 31, 2019[56]. - Interest-bearing bank and other borrowings were RMB 243.5 million as of June 30, 2020, a decrease of 19.4% from RMB 302.1 million in the same period last year[57]. - The company's cash and cash equivalents increased to RMB 46,313 thousand from RMB 28,967 thousand, showing a growth of 60.0%[166]. - Operating cash flow for the six months ended June 30, 2020, was RMB 99,436,000, significantly up from RMB 43,587,000 in the same period last year[179]. - Cash flow from investing activities showed a net outflow of RMB 10,717,000, an improvement from RMB 12,346,000 in the previous year[182]. Employee and Governance Matters - As of June 30, 2020, the group had approximately 833 employees, a decrease from 927 employees as of December 31, 2019, indicating a reduction of about 10.1%[74]. - The company has maintained good relationships with employees, focusing on enhancing professional quality and providing comprehensive training systems[74]. - The board composition includes three executive directors, one non-executive director, and three independent non-executive directors, maintaining strong independence[141]. - The company expressed gratitude to management and employees for their contributions and to shareholders for their ongoing support[157]. Shareholder and Dividend Information - The board proposed an interim dividend of HKD 0.02 per share for the six months ending June 30, 2020, totaling approximately HKD 10 million, pending shareholder approval[72]. - Major shareholder Chong Kit Limited holds 375 million shares, representing 75.00% of the company's total shares[78]. - The total equity interest held by directors and major executives in the company amounts to 378 million shares, accounting for 75.60% of the total shares[86].

Financial Performance - In 2019, the company achieved new car sales of 17,050 units, remaining stable compared to the previous year, despite a 9.6% decline in China's passenger car sales[11]. - Total revenue increased by 6.8% year-on-year to RMB 2.07 billion, with gross profit rising by 2.9% to RMB 180 million[11]. - The net profit attributable to shareholders, excluding listing expenses, grew by 4.8% to RMB 43.9 million, while profit after deducting listing expenses slightly decreased by approximately 4.0% to RMB 33.1 million[11]. - The company's vehicle sales revenue, including new and used car sales, reached RMB 1.79 billion, representing a year-on-year growth of 7.9%[12]. - Revenue from other comprehensive automotive services amounted to RMB 282 million, with gross profit of RMB 127 million, reflecting an 11.4% increase compared to the previous year[12]. - The group recorded revenue of approximately RMB 2,072.2 million for the year 2019, an increase of about RMB 131.9 million or 6.8% compared to RMB 1,940.3 million in 2018[45]. - Vehicle sales revenue for 2019 was approximately RMB 1,790.5 million, a growth of 7.9% from RMB 1,658.9 million in 2018[30]. - New car sales revenue reached approximately RMB 1,771.7 million (17,050 units), an 8.0% increase from RMB 1,641.4 million (17,037 units) in 2018[31]. - The sales revenue from used cars was approximately RMB 18.8 million, up 7.3% from RMB 17.5 million in 2018, with a sales volume increase of 62.8%[32]. - Repair services revenue increased from RMB 172.4 million in 2018 to approximately RMB 187.3 million in 2019, accounting for about 9.0% of total revenue[36]. Market Expansion and Strategy - The company plans to establish a second used car trading center by the end of the year to further expand its market share[15]. - The company aims to expand its automotive sales and service network through organic growth and selective acquisitions, while also enhancing after-sales service revenue and developing a used car trading market[24]. - The group plans to open a second used car trading center in 2020 and seek suitable acquisition targets to expand its sales network and service platform[42]. - The group aims to leverage the Greater Bay Area's growth potential and improve transportation infrastructure to boost the passenger car market in Zhongshan[42]. - The company plans to acquire one to two car dealership stores in 2020 to expand its network, focusing on potential acquisition opportunities in Zhongshan and the Greater Bay Area[17]. Customer and Employee Relations - As of December 31, 2019, the company had over 200,000 retained customers and more than 50,000 users on its official WeChat account, enhancing its online marketing capabilities through big data analysis[19]. - The company emphasizes the importance of employee, customer, and supplier relationships for sustainable development[97]. - The company maintained good relations with employees, with no significant issues arising from labor disputes during the year[70]. - The company has adopted a share option scheme to incentivize directors and eligible employees[71]. Governance and Compliance - The company’s governance structure has been strengthened since its successful listing on the Hong Kong Stock Exchange on October 18, 2019, enhancing compliance management capabilities[20]. - The board has the general authority to determine director remuneration, subject to shareholder approval at the annual general meeting[70]. - The company is committed to maintaining compliance with all relevant laws and regulations in its operations in China[100]. - The board consists of at least one independent non-executive director with appropriate professional qualifications or accounting knowledge, complying with listing rules[188]. - The company has complied with the corporate governance code since its listing, except for the separation of the roles of Chairman and CEO[180]. Risk Management - The company faces various market risks, including credit risk, liquidity risk, interest rate risk, and foreign exchange risk[174]. - The automotive industry is influenced by macroeconomic conditions, and fluctuations may impact vehicle sales[172]. - Changes in industry policies could lead to decreased demand for products and increased market competition, affecting revenue and profits[173]. Future Outlook - The company anticipates explosive growth in consumer demand for automobiles post-pandemic, driven by changes in consumer behavior and government policies to stabilize the automotive market[22]. - The group anticipates a significant increase in compensatory consumer demand for automobiles post-pandemic, despite challenges in Q1 2020[41]. Financial Management - The group maintained a prudent financial management approach, meeting its working capital needs primarily through cash flows from operating activities and short-term borrowings[56]. - The financing costs increased significantly by approximately RMB 10.6 million or 151.4%, totaling RMB 17.6 million due to a substantial increase in borrowings for operational needs[50]. - The group’s total liabilities to equity ratio decreased to approximately 1.3 times as of December 31, 2019, down from 3.0 times in the previous year[56]. - Cash and cash equivalents increased to approximately RMB 143.1 million as of December 31, 2019, compared to RMB 137.0 million in the previous year, reflecting an increase of about RMB 6.1 million[56]. Environmental Responsibility - The company has implemented strict environmental protection measures to comply with current environmental laws and regulations[95]. - The company encourages all employees to participate in environmental activities to benefit the community[96].