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


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.