Dah Chong Hong passenger car sales climb, motor business revenue HK$2.89bBusiness | 27 Aug 2018 4:56 pm
Dah Chong Hong Holdings (1828), the dealer and distributor of 15 vehicle brands and Princess luxury yachts, said today first half revenue for the Hong Kong and Macau motor business increased by 9.2 percent to HK$2.89 billion, from HK$2.64 billion in the first half of 2017.
Vehicle unit sales increased by 12.1 percent, as passenger car sales outpaced the overall market due to strong demand and model launches, the company said.
Operating profit improved significantly by 39.9 percent to HK$235 million on-year from higher vehicle sales, prudent margin controls and efficiencies. Overall, operating margin was 8.1 percent, an increase of 1.8 percentage points against the first half of 2017.
In the first half, the Hong Kong passenger car market returned to normalcy with a decline of 15 percent in unit sales against a one-off increase of 21.2 percent in 2017 triggered by an electric vehicle tax concession and new diesel vehicle regulations.
Passenger car sales excluding electric and diesel vehicles have rebounded with a year-on-year increase of 18 percent in Hong Kong.
DCH passenger car sales regained market share and increased by 26.9 percent in Hong Kong and Macau to 3,901 units.
DCH commercial vehicles sales in Hong Kong and Macau fell by 9.7 percent to 1,873 units as the Hong Kong government’s emissions program entered into its final stage despite 4.3 percent market growth driven by the demand for the newly-authorized 19-seater light buses.
Revenue of Princess Yachts increased with a solid pipeline for delivery, DCH said.