Source: Media Outreach
Headline: Dah Chong Hong Announces 2017 Annual Results
DCH profit increases 56.9% with strong mainland China motor performanceHONGKONG, CHINA – Media OutReach – 8 March 2018 – Dah Chong Hong Holdings Limited(“DCH” or the “Group”; stock code: 01828) announced today its results for the yearended 31 December 2017. In2017, Dah Chong Hong Holdings Limited (“DCH”) embarked on a path of enhancedoperational excellence to prepare a solid foundation for sustainable growth. As aresult of ongoing profitability enhancements and synergy development,DCH achieved revenue of HK$50,506 million in 2017 (2016: HK$46,462 million) andan increase of 56.9% in profit attributable to shareholderstotaling HK$802 million (2016: HK$511 million). Forthe year ended 31 December 2017:Group revenue increased by 8.7% toHK$50,506 million Profit attributable to shareholdersincreased by 56.9% to HK$802 millionEarnings per share were 43.71 HK centsProposed final dividend with scripoption of 11.90 HK cents per shareFull year dividend increased by 100.8%to 16.95 HK cents per share Motor Business The mainland China motor business, DCH’slargest segment by profit and revenue, was the primary contributor to thestrong performance as a resultof the successful implementation of profitability enhancement initiatives, anongoing strategy to increase exposure to the premium vehicle market and theacquisition of premium dealerships in Eastern China. As a result, segmentrevenue for the mainland China motor business increased by 6.8% while segmentresult from operations more than doubled to HK$888 million (2016: HK$356million). Segment margin increased to 3.4% from 1.4% in 2016. While revenue from the Hong Kong and Macao motorbusiness was stable, competitive pricing to secure share in a market impactedby electric and diesel vehicle policies resulted in a 23.1% decrease in segmentresult from operations. With Hong Kong and Macao motor offsetting mainlandChina motor performance, the overall motor business segment result fromoperations increased by 43.2%. Consumer Products Business In June 2016, DCH expanded itsconsumer products business with an acquisition to strengthen existing FMCGoperations, introduce a profitable healthcare distribution business and extendgeographical coverage to Southeast Asia. In 2017, DCH rebranded the acquired FMCGand healthcare distribution businesses as IMSA (Integrated Market ServicesAsia) and DCH Auriga, respectively, and focused on integration to achieveoperational synergies. With the consolidation of a full year of performancefrom IMSA and DCH Auriga, the total consumer products business recordedincreased revenue of HK$16,408 million (2016: HK$13,831 million). However,segment result from operations fell by 41.5% against 2016 as restructuring andbusiness enhancements continued in the mainland China food and FMCG business. 2018 OutlookIn 2018, DCH will continue to improve overallperformance with company-wide business enhancement measures while pursuingstrategic partnership and acquisition opportunities. As the largest businesssegment, the mainland China motor business will remain an important growth andprofitability driver as DCH explores opportunities to expand its dealershipnetwork and motor-related businesses. In the consumer products business, theHong Kong food and FMCG operations will provide a stable foundation and sourceof expertise as DCH continues a vigorous agenda of reform and restructuring inmainland China. To strengthen its supply chain network, DCH will continue to investin infrastructure and the growing healthcare industry. With enhanced core competencies, nearly seventyyears of expertise and the support of parent company, CITIC Limited, DCH will continue to fortify itsbusinesses portfolio to pursue market leadership across its business segments. This pressrelease should be read in conjunction with the full text of DCHs HKExAnnouncement dated 8 March 2018, which is available on https://www.hkex.com.hk.About DCH (Stock Code: 01828)DahChong Hong (“DCH”, stock code: 1828.HK) is an integrated motor andconsumer products distribution company operating in Asia with an extensivelogistics network. DCH is a leading distributor and dealer of motor vehicles inGreater China and provides a full range of motor related services includingmaintenance, rental, repair and financing. DCH’s consumer products businessincludes the distribution of food and FMCG, healthcare and electronic products aswell as food processing, trading and retail.
Dedicated to bringing to quality products toconsumers across Asia, DCH is the preferred partner of over 1,000 brands frommore than 30 countries with operations in 12 Asian economies. DCH is asubsidiary of China’s largest conglomerate CITIC Limited (stock code: 0267.HK),DCH employs over 17,000 staff across the region. For more details, please visitwww.dch.com.hk
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Dah Chong Hong Announces 2017 Annual Results
Source: Media Outreach