For the six months ended 30th June, 2001, the total turnover of the Group was HK$589,334,000 (2000 : HK$327,545,000), and the interim unaudited consolidated profit attributable to shareholders was HK$374,150,000. which was 2.33 times that of HK$160,875,000 of the same period of 2000. Earnings per share was HK
11.44 . which was 1.83 times that of HK 6.25 of 2000. The Board of Director recommend the distribution of HK 2 per share (No interim dividend was declared in 2000 Interim Results).
For the six months ended 30th June, 2001, Guangzhou Honda Automobile Co., Ltd. ("Guangzhou Honda") being the principal business of the Group had produced a total of 25,638 Guangzhou Honda Accord sedans, representing an increase of approximately 110% over the same period of last year, and the sales amounted to 25,454 vehicles, an increase of approximately 111% over the same of last year. The percentage increases in both production and sales of sedans were ranked the top position nationwide. (The aggregate sales of the sedan market in the People's Republic of China for the period from January to June this year amounted to approximately 337,000 vehicles, an increase of approximately 28.9% over the same period of last year.
At present, market share of the Honda Accord sedans produced by Guangzhou Honda has risen from 4.6% for the same period of last year to 7.6%, whereas the market share of Honda Accord sedans accounted for 29.3% of medium to high-end sedans in the PRC, representing a leading position. Following the launching of 2.3Vti-E/L and 2.0Exi, the 3.0V6 model was launched in the first half of 2001, and the domestic component content level of the new 3.0V6 model product which passed the acceptance test of the State amounted to 42.12%, whereas the domestic component content levels of other products have attained 57.74%. Production cost of Guangzhou Honda has been gradually reduced while the quality of product is being maintained.
The "four-in-one" franchisee shops pioneered by Guangzhou Honda in the PRC have grown to 80 in number, and they are of increasing importance in the sales and after-sales service for the products of Guangzhou Honda. It is planned to increase the Number of franchised shops to 120 shops by end of this year. Given the fact that the technology level of Guangzhou Honda is parallel with that of Honda products in Japan, the right pricing of Guangzhou Honda's products, and with its comprehensive after-sales service, the demand for Guangzhou Honda Accord sedans has been outstripping supply. Increased production and sales results have been witnessed since they were first commissioned into production.
The various targets of the medium-term plan laid down at the beginning of this year in respect of other business of the Group have also been completed, in particular, sales and trading of motor vehicles recorded a significant increase over the same period of last year.
In order to better position ourself in the management of the invested business in the PRC, the Group has completed the renaming of Guangzhou Weida Machinery Enterprises Corporation Limited to Guangzhou Denway Enterprises Development Co., Ltd.
While Guangzhou Honda has set the target to sell 50,000 Guangzhou Honda Accord sedans this year, it is also undertaking in full swing to upgrade and expand its plants for a much larger scale of production in future, in preparation for the scheduled production and launching onto the market of its new products, namely, ODYSSEY and 2003 model converted Accord new model. Moreover, Guangzhou Honda has decided to move forward the production timetable for the economy model of sedans in order to cope with the market changes and competition in the PRC as well as to meet the demand of different levels of users. In doing so, it will ensure a top position for the Group in the severe market competition, and under the competitive environment we will be able to grow and expand.
In the second half of the year, the Group will embark on adjustments of its production site to cope with the expansion of Guangzhou Honda.
The Directors believe that given the combined strength of its PRC and Japanese partners, Guangzhou Honda, the principal business of the Company will be able to grasp any opportunity arising and speed up its development, as such, it will secure an important position in PRC's sedan market. The other areas of the Company's business will also see significant growth, and shareholders will receive attractive returns from the Company.
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