APOLLO FUTURE MOBILITY GROUP Announces 2021 Annual Results

(3 January 2022, Hong Kong) Apollo Future Mobility Group Limited (“AFMG”, the “Company”, HKEX stock code: 860) announced the consolidated results of the Company and its subsidiaries (collectively, the “Group”) for the year ended 30 September 2021 (the “Year”).

During the Year, the Group reinforced its position as a leading mobility technology solutions provider, drawing on research outputs and engineering excellence from its hypercar development unit, while persisting in developing its proprietary future mobility technologies. The Group continued its deep dive into the three business pillars: Engineering Services Outsourcing (“ESO”), Technology Development and Automobile Manufacturing.

The Group saw revenue for the Year increased by approximately 47.8% year on year to approximately HK$528.6 million from the approximately HK$357.7 million last year. The growth was driven by revenue from the new core businesses of sales and distribution of vehicles and related components, provision of engineering services and licensing income which increased substantially to approximately HK$104.8 million from approximately HK$3.5 million in 2020. In a nutshell, the revenue growth was primarily propelled by three factors: (i) the delivery of Apollo Intensa Emozione (“IE(s)”) during the Year, (ii) the revenue contributed by Ideenion following the completion of its acquisition, and (iii) the licensing income from the license of vehicular platform.

Reinforced leading ESO provider positioning

During the Year, the Group established a new facility in Germany in a move conferring major strategic importance. The new facility is located in Wolfsburg, the home of Volkswagen AG’s headquarters and one of the world’s largest automotive plant. The facility, together with the Group’s ESO business unit in Ingolstadt, the home of Audi AG’s headquarters, collectively the “AFMG Germany Operation” has been working with various OEMs, start-ups and suppliers from all over the world to realize concept cars and other technology demonstrator and component projects of world-leading quality.

This came on the heels of the completion of Ideenion, a German automotive engineering service provider, by the Group in February 2021. Ideenion’s automotive industry expertise covers a wide range of activities encompassing ideation, design, modeling, engineering, simulation, validation & testing, and prototype production, to the delivery of pre-production prototypes to OEM clients.

Struck breakthroughs in Technology Development

The Group’s R&D team continued to strike breakthroughs in developing proprietary technologies and updates its existing technologies. The Crate Powertrain, developed by Apollo Advanced Technologies (AAT), embodies AAT’s innovations that empower the transition to 800V systems for EVs. It features a 3 in 1 Dual Inverter (1 PDU & 2 Inverters) utilising the latest generation 800V Silicon Carbide Technology for higher efficiency. 2 entirely new 800V Axial Flux E-Motors are mounted within the chassis and coupled with planetary gearboxes, provide a compact and elegant transmission unit. This presents a unique dual-motor layout with torque vectoring, replacing the heavy and complex differential assembly, and gives OEM customers significant flexibility for drivetrain integration into both new and existing vehicle systems.

Automobile Manufacturing

– Delivered More Apollo IEs, unveiled Apollo Project EVO and Apollo EVision S

A total of two Apollo IE vehicles were delivered during the Year. All ten vehicles had been sold prior to the commencement of production and delivery started in November 2019.

The Group unveiled in November 2021 in China International Import Expo (“CIIE 2021”) the Apollo Project EVO, the successor of the critically acclaimed Apollo IE, featuring an advanced carbon monocoque and a handling package that ensure raw power and emotional aesthetics are matched by peerless handling and driving dynamics.

Putting the Group’s EV business in China into perspective, during the Year, the Group entered into a cooperation framework agreement with the Shanghai-listed “Shanghai Jinqiao Export Processing Zone Development Co., Ltd.” on the production and R&D of technology and products related to high performance sports EVs and luxury EVs in Shanghai Jinqiao Economic and Technological Development Zone situated in Pudong, where the Group plans to establish a R&D center, regional headquarters and production lines. The proposed cooperation will further strengthen the Group's position in the NEV industry by capturing the huge demand and rising opportunities for high performance electric sports cars and luxury EVs in China, thus is an important move in terms of the Group’s business strategy of building a complete value chain for EVs.

The “Apollo EV (China)” business unit was established during the Year. Apollo EV (China) debuted its activities with the unveiling of its first concept car Apollo EVision S in CIIE.

Broadened capital base with issuance of new shares and convertible bonds

During the Year, 812,596,000 shares were allotted and issued to no less than six subscribers at a subscription price of HK$0.46 per Share for a total cash consideration, before expenses, of approximately HK$373,794,000. In addition, the Group entered into agreements with several professional investors including, among others, the entities controlled by Mr. Li Ka Shing and Ms. Chau Hoi Shuen Solina Holly respectively for issuance and subscription of convertible bonds under a general mandate to raise HK163.8 million in aggregate. These have strengthened the financial position of the Group and is expected to facilitate its future development of mobility businesses.

WM Motor becoming a significant shareholder of AFMG

After the reporting period, WM Motor Holdings Limited (“WM Motor”), a major player in China’s mainstream electric vehicle (“EV(s)”) market, became the largest shareholder of the Group with 28.5% interest via an array of share exchange arrangements.

With WM Motor’s significant shareholding in AFMG, AFMG and WM Motor will be able to exploit synergies for the benefits of businesses of each other. WM Motor will be able to tap the EV design, advanced engineering expertise, proprietary technologies of AFMG with full support from the two bases in Germany, the EV platform support from GLM Co., Ltd. (a subsidiary of the Company) and the world's first 3D metal printing automotive manufacturing platform and assembly system from Divergent 3D, and solid experiences in serving the world’s Tier-1 automobile brands, for development of new EV models and product series and enhancing product quality. WM Motor’s established EV manufacturing facilities and distribution networks will be able to facilitate AFMG’s EV businesses in China.

Mr. Ho King Fung, Eric, Founder and Chairman of Apollo Future Mobility Group Limited, commented, “With our reinforced positioning in the ESO space, establishment of facilities in Germany and forging of cooperative partnerships in China, we will continue to ride on the improving EV adoption trend around the world as a leader of accelerated innovation in the mobility industry.“

“We are glad to have WM Motor as one of our major shareholders. With their proven commercial production capacities, rich marketing and distribution resources, we shall join forces with them to accelerate our EV business development, while elevating our ESO business to a new level. We look forward to exploiting further synergies with WM Group to tread deeper into the NEV industry chain and establish stronger footholds for both of us in the NEV industry in China and overseas markets.”

Mr. Ho continued, “With delivery of more Apollo IEs and the glittering unveiling of Apollo Project EVO and Apollo EVision S concept car, AFMG’s design and engineering capability in the ultra-high-end ICE and electric sports coupé category has been fully recognized. We will continue to consolidate our edges in the high-end segment and look forward to deliver hypercars to well-defined prestigious high-performance motorsport aficionado customers to highlight their status better. We also look forward to designing and making EVs for the young and affluent Chinese customers in designs and specifications that match their needs and tastes, thus filling the vacuum in this particular market segment. We are better positioned than ever to yield better results from this grand mobility industry development trend.”