【For Immediate Release】 5 February 2018
China MeiDong Auto Holdings Limited
(Incorporated in the Cayman Islands with limited liabilities)
(Stock code: 1268.HK)
2017 Annual Results Positive Profit Alert
Substantial Increase of Over 60% in Consolidated Profit Attributable to Equity Holders
[5 February 2018 - Hong Kong] A fast-expanding auto distributor, China MeiDong Auto Holdings Limited ("MeiDong Auto", together with its subsidiaries, the "Group", stock code: 1268.HK), is pleased to announce that based on the preliminary review and assessment of the unaudited consolidated management accounts for the year ended 31 December 2017 ("the Year"), with the 1) strong turnover growth; 2) solid improvement of gross margin and net margin; and 3) continued and sustainable optimization of brand mix and "single city single store" strategy of the Group during the Year, the Group expects its consolidated profit attributable to equity holders will have a substantial increase of over 60% as compared to last year.
For delivering such remarkable results, Mr. Ye Tao, Chief Executive Officer and Executive Director of China MeiDong Auto Holdings Limited, said, "2017 had been a promising year after the inflection point in 2016. In line with our expectation, the strong momentum continued throughout the past year was driven by the improved supply and demand balance and strong product cycles of our brands, in particular the luxury brands. Under the current favorable trends of the industry, leveraging on our expansion strategy of "single city single store", which focuses on luxury brands in smaller cities and continuous enhancement in our management efficiency, we have high hopes regarding the Group's performances in the year of 2018."
In terms of future development, Mr. Ye Tao continued, "The encouraging sets of results over the past years have provided a proven track record for our single city, single store expansion strategy with a focus on luxury brands. The strategy targets 2nd to 4th tier cities in China where the markets are with strong growth potential. In the future, the Group will further expand its geographical presence and continue its store expansion, supported by sufficient number of pipeline projects and a healthy balance sheet with strong cash flow. We will work aggressively to accelerate business growth and to maintain our leading position in management efficiency within the industry, with an aim to deliver fruitful results to our shareholders in the near future."
05/02/2018 Dissemination of a Financial Press Release, transmitted by EQS Group.
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