Luxury-car distributor Jardine International Motor Holdings (JIMH) posted a 64 per cent annualised drop in net profit in the year to December 31 to US$14 million.
Turnover at JIMH, the only distributor of Mercedes-Benz cars in Hong Kong and Macau, fell 21 per cent to US$2.8 billion, while earnings per share dropped to 2.95 US cents per share, down from 8.18 cents.
Despite the downturn, the company - 75 per cent-owned by Jardine Matheson - said sales of new and used cars last year rose 22 per cent from a year earlier to 161,000 units.
'In Hong Kong, Zung Fu achieved an increased market share in the year and saw deliveries of Mercedes-Benz increase 25 per cent, significantly outperforming the general market and luxury sector,' chairman Anthony Nightingale said.
JIMH will pay shareholders a 1.8 US cents final dividend, down from 4.8 US cents in the previous year.
According to Mr Nightingale, the negotiations over DaimlerChrysler's desire to increase its participation in the sale of Mercedes-Benz cars in Hong Kong and Macau 'would lead to a continuation of a long relationship'.
