Auto Italia delivers strong H1 profits despite losing Ferrari import and distribution rights

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Luxury car distributor and holding company Auto Italia has, despite having its import and distribution rights of Ferrari cars into Macau and Hong Kong terminated, still managed to see a 210 per cent increase in profit, reaching HK$35.4 million (US$4.52 million) during the first six months of the year, according to a company filing with the Hong Kong Stock Exchange.
The company’s import rights were terminated by Ferrari effective May 27; however during the six-month period the group generated a 76 per cent increase in revenue from its other luxury car import brand, Maserati, reaching HK$160.7 million. This was noted as due to ‘the increase of both new car unit sales and after-sales services revenue’.
This increase, coupled with one from the provision of property investment divisions services in the Mainland, fair value gain on investment properties and gains from a disposal of a property, plant and equipment drove the profit increase.
The group, as of August 17, also entered into a joint venture agreement to subscribe to 27.5 per cent of Targetco, the incorporated holding company of the Target Group, for a total of about HK$55 million, in order to gain a foothold in a rental property in Glasgow.