Dah Chong Hong Holdings has won the dealership rights for Volkswagen's Bugatti cars in China, a deal critical to expanding the mainland car dealership market, chairman Clement Hui Yingbun said.
'China's automobile industry recorded robust growth for the past few years,' Mr Hui said. 'But there is fierce competition in the Chinese automobile market because many big global carmakers, such as Volkswagen and General Motors, will often handle car distribution and after-sales services by themselves.'
The company, a distribution unit of property-to-metals conglomerate Citic Pacific, plans to focus on the high-growth car dealership business for the next three years.
It is also developing its food supply chain management business. DCH has set aside HK$300 million to enhance its food supply chain management.
'The integration of food manufacturing, processing and retailing will lift the profit margin of the company,' Mr Hui said.
The company plans to open five more DCH Deluxe food stores in Hong Kong this year. It has 55 stores now.
'We hope, eventually, the proportion for motor and food supply chain management will take 50 per cent each of the company's overall business,' Mr Hui said.