AFMG Announces 2021 Interim Results
APOLLO FUTURE MOBILITY GROUP Announces 2021 Interim Results
Significant revenue increase in automotive sales and engineering services Persisting in technology and hypercar development
(1 Jun 2021, Hong Kong) Apollo Future Mobility Group Limited (“AFMG”, the “Company”, HKEx stock code: 860) announced the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively, the “Group”) for the six months ended 31 March 2021 (the “Period”).
During the Period, riding on the accomplishments in the rebranding and transformation into a mobility technology solutions provider, the Group focused its business development on three pillars, namely Engineering Service Outsourcing (“ESO”), with existing global major auto brand customers such as Volkswagen, Audi, Lamborghini, Porsche, BMW, General Motor, Honda, etc., Technology Development and Automobile Manufacturing. The revenue of the Group decreased by approximately 6.2% to approximately HK$241.1 million for the Period, as compared to approximately HK$256.9 million in the corresponding period of last year, due to weak sentiment in the retail market of its legacy businesses. Income from sales and distribution of vehicles and related components and provision of engineering services significantly increased to approximately HK$44.2 million from approximately HK$0.9 million in the corresponding period of last year, following the completion of the acquisitions and business restructuring.
The Board of Directors of the Company has expressed confidence about the Group’s future developments, with its ongoing plan of scaling down the legacy businesses and focusing its capital and management resources on further development of its more promising mobility technology solutions businesses.
Securing foothold in the Engineering Service Outsourcing segment VM Group,
During the Period, the Group completed the acquisition of the entire issued share capital of Ideenion, a German automotive engineering service provider. This has officially commenced the Group’s foray into the provision of new energy vehicle (“NEV(s)”) solutions and services. Leveraging the expertise and experience of its German subsidiaries, the Group is further strengthening its ability in providing cutting edge technological solutions, and is exploiting substantial synergies with its other investments in the mobility business. The participation in the ESO segment, a quantum value-driver in the next stage of the EV industry evolution, lands the Group at the apex of the EV supply chain.
Persisting in Technology Development
The Group has been continuing prototyping and testing work on the next generation 800V SiC dual inverter development project. The newly developed 800V SiC dual inverter, coupled with the battery management system with solid state battery, can greatly lower heat output of the inverter, while reducing weight, size and time required for charging. By incorporating this inverter into the Group’s new EV system, the Group will be able to further optimize its core technology and expand its component business focusing on the development of new EV models and the supply of EV systems.
The Group has also commenced the development of vehicle control units, an endeavor originated from its subsidiaries in Germany, which are engaged in the provision of automotive ESO to OEMs worldwide. These projects constitute the Group’s landmark presence in the advanced auto component business development space.
Automobile Manufacturing
– Delivered More Apollo IEs, kicked start development of new products
Two Apollo Intensa Embzione (“Apollo IE”) vehicles were delivered during the Period. Since the official launch in November 2017, all of the limited ten vehicles had been sold prior to the commencement of production. The Group has scheduled to deliver another two Apollo IEs by the end of the financial year ending 30 September 2021.
The team has been working diligently on new models of both internal combustion engine hypercars and luxury electric sports cars, which are expected to be unveiled at the upcoming China International Import Expo in November 2021.
During the Period, the Group entered into a cooperation framework agreement with Shanghai Jinqiao Export Processing Zone Development Co., Ltd., a company listed on the Shanghai Stock Exchange, in relation to a proposed cooperation on the production and research and development (“R&D”) of technology and products related to high performance electric sports cars and luxury EVs in Shanghai Jinqiao Economic and Technological Development Zone situated in Pudong New Area, Shanghai, where the Group plans to establish a R&D center, a regional headquarter and production lines.
The Group will proactively explore opportunities to expand its business in the Chinese market, in particular the luxury EV market segment, leveraging Apollo’s premium position on the spectrum of ultra-high-end EV in order to meet the demand and requirements of motor aficionados.
Mr. Ho King Fung, Eric, Chairman of Apollo Future Mobility Group Limited, comments, “With our German subsidiaries’ experience and expertise in ESO, AFMG will continue to expand our ESO business by generating recurring businesses with existing clients and acquiring new ones, both from the league of established automobile brands and the emerging group of other companies aspiring to enter into the EV industry.”
Mr. Ho continues, “The Group will also continue to develop its proprietary technologies to cement our first-mover advantage and leadership in the Technology Development segment. AFMG, meanwhile, will continue to exploreopportunities with partners to unlock potential from the changing product development and manufacturing landscape brought about by the advent of the EV evolution. With our strong hypercar engineering backing from the Automobile Manufacturing division, our competitive ESO business unit and the high-potential EV technology supply business led by the next-generation 800v SiC dual inverter system, AFMG is well-positioned to monetize on these exciting and promising EV industry developments.”
