China Dynamics Announces 2020 Interim Results

China Dynamics Announces 2020 Interim Results – Revenue Surges Seven-fold to HK$21.5 million

(Hong Kong, November 30, 2020) – China Dynamics (Holdings) Limited (the “Company”; (Stock Code: 476), together with its subsidiaries, collectively “China Dynamics” or the “Group”), a provider of new energy vehicles and technology integrated solutions, recorded a revenue of approximately HK$21.5 million for the six months ended September 30, 2020, or a surge of nearly 700% year-on-year. Thanks to its international sales efforts and cost optimization plan, the Group’s gross profit for the period amounted to approximately HK$7.0 million (September 30, 2019: HK$0.1 million) with gross profit margin of 32.5% (September 30, 2019: 3.3%). Looking ahead, the Group will capitalize on this positive momentum to further explore the overseas markets, thereby driving its overall revenue and towards a sustainable business strategy.

The Group have completed sales orders from Hong Kong Productivity Council on two smart electric buses for trial run by the Airport Authority Hong Kong and the Hong Kong Anti-Cancer Society. Moreover, the Group has completed the development of a tailor-made seven-meter city bus for South East Asia market. The first orders have been delivered and will be unveiled in early December 2020.

For Latin America, the Group has developed a 12-meter “rolling platform” that is a complete chassis with powertrain, battery pack, steering, wheels and brakes. The Group has already secured a sizable order and is currently in negotiations to close another large order for 12-meter e-platforms in Latin-America. In addition, the Group has obtained a trial order for its logistic vehicles to Europe, which is expected to deliver within this financial year.

Mr. Miguel Valldecabres Polop, CEO of China Dynamics, said, “Part of the sale orders from South East Asia has been completed and booked in the current year’s profit or loss. After the successful showcase delivery of orders to South East Asia, the Company is now in the concluding stage for some sizable follow-up orders. In the current period, several sales orders from Central and South American countries have been concluded and are in the production stage now. It is expected for delivery in phases within year 2021.”

Mr. Cheung Ngan, Chairman of China Dynamics, said, “The COVID-19 pandemic has inevitably affected the Group’s production schedule as well as the placing and executing of orders. Yet, the Group will closely monitor the market condition and continue to explore the overseas markets so as to enhance its own competitiveness. With the Group’s diversification of business into overseas export markets, we are confident that the electric bus and electric vehicle business will grow at a fast pace, contributing to overall revenue and elevating the Group’s business to the next level. Looking ahead, the Group is fully confident in its future development, and is also well positioned to capture opportunities as they arise.”