AFMG Announces Annual Results 2022
Significant Progress in Mobility Business with Over 40% Top-line Growth
(Hong Kong, 31 March 2023) — Apollo Future Mobility Group Limited (“AFMG” or the “Company”; HKEX stock code: 860, together with its subsidiaries, the “Group”) is pleased to announce the consolidated results of the Company and its subsidiaries (collectively, the “Group”) for the fifteen months ended 31 December 2022 (the “Period”), due to the change of financial year end date to 31 December.
Throughout the Period, the Group experienced robust revenue growth, reaching around HK$774.9 million, representing an impressive surge of approximately 46.6% compared to the year ended 30 September 2021. Notably, the mobility services segment revenue grew substantially, from approximately HK$104.8 million for the year ended 30 September 2021 to around HK$218.8 million, primarily driven by licensing income from its vehicular platform and the contribution from engineering services outsourcing business. The Group's gross profit for the period was approximately HK$159.7 million, a significant increase of over 21.4% as compared to the year ended 30 September 2021. The Company achieved a remarkable profit, recording the profit attributable to owners of the Company for the Period of approximately HK$263.5 million during the Period.
Mr. Ho King Fung, Eric, Chairman of AFMG, commented, “During the Period, the Group aligned with the worldwide trend of escalating electric vehicle usage, prioritized the development of own branded hypercars and smart luxury electric passenger cars by capitalizing on the unique allure of the Apollo brand and the Group’s technological prowess, and executed several initiatives to reinforce its distinctive position in the upscale smart mobility industry. The bettering financial performance demonstrated the Group has made significant progress in its mobility projects. It also reflected the Group's determination to establishing a foothold in the luxury electric passenger car market.”
Mr. Ho continues, “The Group also entered into a capital injection agreement with Shanghai Alliance, AFMG’s strategic investment partner, to jointly inject capital into a joint venture. The two parties are working together to actively develop and manufacture luxury electric passenger cars, further enhancing the Group’s commercial production capacity of luxury electric passenger cars, and hence promoting the development of the Group’s new energy vehicle manufacturing business and technology. Working alongside the Group’s strategic partners, notably Divergent Technologies.(“Divergent”) and EV Power, AFMG is poised to create an advanced mobility ecosystem that will revolutionize smart mobility and forge a new benchmark for the future of mobility.”
Delivery of Apollo Intensa Emozione Hypercars and Launch of Apollo Project EVO
During the Period, a total of four flagship hypercar Apollo Intensa Emozione (“Apollo IE”) were delivered to customers. As the successor to the highly acclaimed Apollo IE flagship supercar, the Apollo EVO project made its highly anticipated debut at the China International Import Expo ("2021 CIIE") in November 2021. This project set new industry benchmarks for next-generation collectable hypercars. The Group’s branded hypercars was showcased at several significant events during the Period, including the Nürburgring in Germany and the Monterey Car Week in the United States, and garnered enthusiastic reactions from automotive enthusiasts and potential customers.
Strategic Plan for Electrification Unveiled
The Group announced its entry into the lucrative luxury smart electric passenger car segment with the unveiling of its Apollo EVision S concept car in CIIE 2021. To further mark the Group's commitment to gain a foothold in the market, the Group unveiled the Apollo EV strategic plan on electrification with the announcement of the grand debut of the new AFMG smart luxury electric vehicle model in 2023. This smart luxury electric vehicle is developed based on a platform developed by GLM Co., Ltd., a subsidiary of the Company in Japan, and G2J advanced engineering prototype while inheriting Apollo’s hypercar DNA with carbon-fiber bodyworks and striking aesthetics, presenting the Group’s platform engineering expertise, latest mobility technology and the next step towards the future of mobility.
Mobility Ecosystem Continues to Evolve
Leveraging on strategic partners including Divergent and EV Power, AFMG has been developing an advanced luxury mobility ecosystem and has made significant progress in its technological innovation during the Period. It is expected to further enrich the Group’s mobility services and offerings along the automotive value chain.
The Group signed its first-vehicular platform licensing agreement with Italian brand De Tomaso in 2020 and received licensing revenue from them during the Period. Simultaneously, being an innovation empowered by the Group’s R&D team, the prototype of Crate Powertrain which features cutting-edge innovations that enable EVs to shift towards 800V systems, underwent tests during the Period. To showcase the Group’s technological capabilities and innovations, the Group hosted mobility showcases in Macau and Hong Kong during the Period, which were well received by the market.
Being Recognized as A Major Player in Smart Mobility Industry
To better reflects the Group’s strategies of being a leading smart mobility services provider and enhances the Group’s corporate image and identity, the Company officially changed its Chinese name to “Apollo 智慧出行集團有限公司” during the Period. In addition, the Company was admitted to the “Consumer Discretionary” industry - “Automobiles” sector - “Automobiles” subsector under the Hang Seng Industry Classification System, enabling investors to more accurately identify AFMG as a key industry participant.
Capital Injection into a Joint Venture with Shanghai Alliance Investment
During the Period, Lucky Ample Limited, a wholly-owned subsidiary of the Company, Shanghai Alliance Investment Ltd, a private equity and venture capital arm of the Shanghai Municipal Government, and WESail New Energy Automotive Co. Ltd. (the “Joint Venture”) entered into a capital injection agreement. The Joint Venture is mainly engaged in technology development, transfer, consultation and services related to NEVs.
Disposal of Ideenion Automobil AG and Legacy Business
To enable the Group to optimize its capital and management resources on developing its more promising own brand hypercars and luxury smart electric passenger car businesses, the Group reached an agreement to dispose of the entire issued share capital of its wholly-owned subsidiary, Ideenion Automobil AG for a total cash consideration of EUR15 million (equivalent to approximately HK$124.4 million) during the Period. In addition, the Group reached an agreement to dispose of part of its watches wholesale business and money lending business for a total consideration of HK$50 million and HK$408 million respectively.