Dah Chong Hong Holdings (DCH) announced a 77.8 per cent increase in profit attributable to shareholders to HK$480 million and a 49.1 per cent increase in turnover to HK$14.12 billion for the six months ended June.
'The results are above our expectations,' says David Kuk Tai-wai, the managing director of DCH Logistics. 'We plan to continue our expansion on the mainland ... under our 'China Momentum' plan.'
Excluding non-operating items, such as net valuation gain or loss from investment properties, the adjusted net profit attributable to shareholders surged 68.4 per cent to HK$500 million, while the adjusted net profit margin increased 0.4 percentage point to 3.5 per cent.
The board of directors recommended an interim dividend to shareholders of 10.68 HK cents per share, a 136.8 per cent increase from a year earlier. Interim dividend is based on 40 per cent dividend payout ratio.
DCH plans to strengthen its business on the mainland, where turnover rose 62.2 per cent during the first six months of this year.
The mainland was responsible for 66.6 per cent of the group's total turnover, while Hong Kong and Macau contributed 26.7 per cent. The remaining 6.7 per cent came from other markets including Singapore and Taiwan.