(1 Jun 2022, Hong Kong) Apollo Future Mobility Group Limited (“AFMG”, the “Company”, HKEx stock code: 860.HK) is pleased to announce the consolidated results of the Company and its subsidiaries (collectively, the “Group”) for the six months ended 31 March 2022 (the “Period”).
The Group saw strong growth in its revenue during the Period to approximately HK$463.4 million, up significantly by approximately 92.2% over the same period last year, contributed by the surging income from mobility business segment amounted to approximately HK$171.8 million, representing an almost four-fold increase from the approximately HK$44.2 million in the corresponding period of last year. The increase in revenue from mobility business segment is primarily driven by the income from licensing of Apollo’s vehicular platform. The Group’s income growth was further fueled by the contribution by Ideenion Automobil AG (“Ideenion”) and its subsidiaries subsequent to completion of the Ideenion acquisition in February 2021. Gross profit for the Period was approximately HK$133.7 million, up from the previous approximately HK$61.2 million for the corresponding period of last year. The gross profit margin widened by 3.5 percentage points to approximately 28.9% due to increase in licensing income. These helped the Group return to profitability with the profit attributable to owners of the Company for the Period amounted to approximately HK$5.8 million and basic earnings per share attributable to ordinary equity holders of HK0.07 cents.
Mr. Ho King Fung, Eric, Chairman of AFMG, commented, “These encouraging financial results validate the Group’s continuing efforts and strong execution capabilities towards transforming into a leading mobility services provider by tapping the more value-lucrative mobility industry.”
During the Period, AFMG unveiled next generation concepts and updates in mobility research and development (“R&D”). The Group welcomed WM Motor Holdings Limited (“WM Motor”) as the single largest shareholder of the Company and went to great lengths to sharpen its leadership capabilities by bringing in a number of senior executives in the automotive industry to both the board level and the senior management level, providing the ammunition to compete head-on with peers in the same mobility space. With WM Motor as a key strategic manufacturing partner for AFMG, combined with the Group’s accumulated experience in the sales and distribution of the Apollo brand in the high-end automobile market over the years and in-house proprietary technology, AFMG hopes to see its development accelerating with a more comprehensive product range highlighted by a line of luxury smart EV models to be launched both in China and globally using a targeted global marketing and distribution network that is innovative and customer-oriented.
Delivered more Apollo IE vehicles and debuted next generation concepts
The Group delivered two Apollo Intensa Emozione (the “Apollo IE”) vehicles during the Period. Featuring modular chassis design, increased safety, increased torsional rigidity, symmetrical design and weight reduction, Apollo IE represents the epitome of ICE hypercar styling, design and engineering of the time.
This enthusiasm from the market prompted the Group to adopt an ambitious strong product development pipeline and unveiled in China International Import Expo (“CIIE”) in November 2021 Apollo Project EVO, a new demonstrator setting the footing for next-generation collectible ICE hypercar development, and a new luxury smart EV concept car Apollo EVision S. EVision S is the Group’s first step into the high-performance sports EV and luxury smart EV segments.
Licensing income from in-house proprietary technology
The Group’s R&D team continued to achieve breakthroughs in developing proprietary technologies and updating its existing technologies, in order to support the development and technological innovation of own-brand vehicles, and obtain licensing income from other OEMs. AFMG derived licensing income from De Tomaso, the Italian supercar OEM, based on the first vehicular platform licensing arrangement in May 2020. The Group plans to expand vehicular licensing arrangements with other OEMs which aspire to offer to their customers a piece of Apollo ’s cutting-edge future mobility technology offerings.
Growing the ESO team
The engineering units in Ingolstadt, Germany with the new campus in Wolfsburg, coupled with UK team and GLM in Japan went through in-depth integration and consolidation during the Period, putting the Group in an advantageous position in recruiting talents and experts from the industry seeking to reach new heights in their celebrated automotive careers in the new energy vehicle (‘NEV(s)”) segment after serving major automotive OEMs. With this expansion, AFMG has been able to expand its services to new clients from both the renowned traditional automotive OEMs and emerging EV brands, helping them in development of their own branded vehicles with the Group’s engineering talent and proprietary technologies.
Veteran Top Executives joining AFMG
A selected group of veteran top automotive executives joined AFMG during the Period. These executives are senior professionals who served major auto giants including Daimler AG, Jaguar Land Rover, Fiat, BorgWarner and Volkswagen with rich experiences in automobile industry and finance industry. Their appointments highlight the Group’s determination in strategically developing its mobility business.
Continuous disposal of legacy business
After closure of the Period, the Group entered into an agreement to dispose of part of its watches wholesale business for a total cash consideration of HK$50 million. The Group intends to apply the net gain of approximately HK$638,000 from the disposal in further development of its design, development, manufacturing and sales of high performance hypercars and luxury smart EVs, provision of mobility technology solutions businesses, and as general working capital purposes.
Mr. Ho commented, “We have been through a very prosperous six months with the participation of WM Motor, expansion of our management and engineering teams, launches of new models and technology updates. Looking ahead, the Group plans to deliver more Apollo IEs in the second half of the financial year 2022.
Following joining of WM Motor, we shall continue to operate as a unique entity and perpetuate our proven success in Apollo branding, mobility business development and technology R&D. We aspire to realize production of luxury smart EV models in China by tapping WM Motor’s manufacturing resources; and roll out products globally leveraging Apollo’s valuable experience and marketing resources accumulated over the years in the high-end automotive market.”
Mr. Ho continues, “The Group is strategizing the product development roadmap and drawing on our expertise in automobile design and technological innovations supported by our teams in Germany, Japan and UK. Our new model launch pipeline going forward will be an aggressive one to encompass ICE hypercars to electric sports cars and luxury smart EV models.
At AFMG, we are enviably well positioned to benefit from the swift post-Pandemic recovery of the automotive market with the added muscle from WM Motor and our own team and we pledge to maximize value for shareholders.”