Business Profile
Directors and Senior Management
List of Directors of Subsidiaries
Corporate Governance
Corporate Social Responsibility
Press Release
Press Release      

2014.08.15 Dah Chong Hong Announces 2014 Interim Results
Dah Chong Hong Holdings Limited

Dah Chong Hong Announces 2014 Interim Results

Sustaining Growth Momentum in Motor and Food Businesses

(Hong Kong,

14 August 2014) Dah Chong Hong Holdings Limited ("DCH" or the "Group"; stock code: 01828) announced today its interim results for the six months ended 30 June 2014.

DCH achieved a 16.7% increase in turnover to HK$22,094 million in the first half of 2014, compared with HK$18,935 million in the same period last year. Profit attributable to shareholders increased by 7.2% to HK$430 million. Basic earnings per share were up 7.1% to 23.47 HK cents. The board of directors of DCH has declared an interim dividend of 9.30 HK cents per share for the first half of 2014(2013 first half: 8.68 HK cents per share).

Mr Donald Yip, Chief Executive Officer said,"In the first half of 2014, DCH has out-performed the motor market in China with a robust growth in unit sales, driven by an increase in passenger car sales with an expanded dealership network. At the same time, our food and consumer products business has recorded healthy sales growth, mainly attributable to the impressive performance of our commodity and FMCG businesses in both Hong Kong and mainland China. In addition, DCH is developing new businesses in e-commerce and pleasure boat to capitalise on the new opportunities in Greater China."

Business Review & Prospects

Motor and Motor Related Business

Segment turnover of the Motor and Motor Related Business increased 18.2% to HK$17,235 million, whereas segment result from operations was HK$646 million, an increase of 13.9%.The segment margin remained stable at 3.7%.

Mainland China

-Approximately 44,000 units of new car sold, achieved above-market unit sales growth of 19.5%. Among all, 40,500 units were passenger car and 3,500 units were commercial vehicle.

-Robust growth in unit sales was driven by an increase in passenger car sales with an expanded dealership network.

-Dealership business recorded a year-on-year turnover growth of 25.8%. Improvement was also seen in other income, such as commission income from auto insurance and auto finance.

-The newly established national insurance agency company should further enhance the commission income from auto insurance which will improve dealership profitability.

-Achieved a 12.7% year-on-year same store growth on new car unit sales.

-A new strategy of dealership network expansion will be implemented including collaboration with strategic car manufacturer partners in setting up shops with better economic values in their networks.

-Number of 4S shops increased to 79 and showrooms increased to 14. 12 greenfield projects are in the pipeline, including eight 4S shops and four showrooms.

-The car rental business will be expanded to Kunming and Ningbo in the second half of 2014.

Hong Kong, Macao & Other Markets

-In Hong Kong and Macao, unit sales increased by 8.0% and segment result from operations increased by 25.9%, with segment margin increased by 1.6-percentage-point to 10.1%.

-Demand for commercial vehicles was strong under the ex-gratia payment scheme granted by the HKSAR Government for the replacement of aged diesel commercial vehicles. The trend is expected to continue in the next few years.

-A new commercial vehicle service center will commence operations in Hong Kongin the second half of this year to accommodate the anticipated future increase in demand for commercial vehicles' after-sales service.

-In Taiwan, the Isuzu distributorship business has performed well with unit sales recording a strong growth of 75.3%.

-Isuzu business in Singapore was also doing well. Isuzu and DCH will explore the business opportunities in Myanmar and other Indochina markets.

Food and Consumer Products Business

Segment turnover grew by 11.8% to HK$4,844 million. Segment result from operations rose by 28.2% to HK$141 million, while segment margin improved by 0.4-percentage-point to 2.9%.

-The FMCG business in China showed a robust performance with 30.8% sales increase, mainly attributable to strong brand strategies for dairy products, snacks, confectioneries and beverages, as well as the expansion of regional sales platforms and market coverage.

-For our house brand Del Leche dairy products, the liquid milk further penetrated into China with distribution expansion in both retail and food service channels, especially in southern China.

-In July 2014, the Group expanded its product portfolio by acquiring the distributorship of a wide range of premium imported Japanese confectioneries and snack products in China.

-Our house brand, Cheer, has also experienced outstanding sales growth of 71.8% of which there was a significant improvement in sales momentum for dairy products in Hong Kong.

E-Business & Pleasure Boat Business Development

-Expand business footprint into the e-shopping market through newly established e-shopping platform DCHnYOU 大昌優品(www.dchnu.com).

-Seize this new emerging e-business market by selling direct-imported-quality products, including food, electrical appliances, motor related products and other trendy, popular and luxury items from overseas, through the newly established legitimate channels in the Shanghai Free Trade Zone in China.

-With a pool of prestigious car owners with whom DCH has established a close relationship over the years through our luxury car dealership, DCH is poised to capitalise on this rising business opportunity in China's yacht market.

-As the first strategic move, DCH has commenced the distribution of Princess motor yachts imported from the United Kingdom to pave the way for this future booming segment.

Mr Yip concluded, "DCH has proven itself to be a successful Hong Kong-based enterprise in the past 65 years. Given the strategic direction under our five-year plan and the business potential arising from our close relationship with the CITIC Group, I am confident that DCH can achieve sustainable business growth and will become one of the leading conglomerates in the consumer market of Greater China."

- End –

About Dah Chong Hong Holdings Limited (Stock Code: 01828)

Established since 1949, Dah Chong Hong Holdings Limited is a Hong Kong-based conglomerate with diversified business portfolio in: (a) Motor and Motor Related Business and (b) Food and Consumer Products Business. The Group has business operations in mainland China, Hong Kong, Macao, Taiwan, Singapore and Japan. DCH has become a publicly listed company on the Main Board of Hong Kong Stock Exchange since 2007. For details, please visit http://www.dch.com.hk

Site MapDisclaimerCopyright © 2011, DCH Holdings