Dah Chong Hong Holdings 2007 Results Announcement

The Group Announces Financial Results in Press Conference

Executive Directors posed for a group photograph.

The Dah Chong Hong Holdings Ltd. (the Group) hosted a press conference and investor briefing on 12 March 2008 at the Island Shangri-La Hotel. During the event, it announced its results for 2007 and answered questions from journalists and financial analysts.

In 2007, the Group increased its profits by 59%. Our motor & motor related business, food and consumer products business, and logistics business have all made significant progress in the last 12 months. In particular, the motor & motor related business in Mainland China recorded a remarkable 43% growth. Our market share in the local private car market has also risen.

The increase in demand for foods and FMCG has led to a 25% increase in the turnover of foods and consumer products in Mainland China. In Hong Kong, the demand for frozen poultry and pork was also high, and continued to register gentle growth during the year.

In the logistics business, the Group enjoyed a 22% growth in revenue compared with 2006, which is a remarkable and very encouraging result.

The Group's 2007 Result Briefing

Executive Directors gave speeches to present the 2007 review result and outlook for 2008

The Group's Executive Directors held a Dah Chong Hong Holdings Ltd. 2007 Result Announcement Briefing on 13 March in the Kowloon Bay Dah Chong Hong Building. The briefing was hosted by the Group's Chairman, Mr. Hui Ying Bun (left), and Deputy Chairman, Mr. Alex Chu Hon Fai, and other Executive Directors, including Mr. Mak Kwing Tim, Mr. Lau Sei Keung, Mr. Tsoi Tai Kwan, Mr. Glenn Smith and Mr. Chan Kin Man, also gave speeches to present the 2007 review results and share their outlook for 2008. Mr. Yip Moon Tong concluded the event by recapping the 2007 results. Over 200 managers attended the briefing.

Mr. Clement Hui Ying Bun, Chairman of the Group, expressed his thanks to everyone for their efforts when the Group went public. In a speech, the Chairman reminded everyone that the Group had started as a local company. Now the group is opening new branches overseas and exploring the Mainland China market. These are all remarkable results. In 2007, our China business actually represented an even bigger share than our business in Hong Kong, Macau and elsewhere! Looking ahead, therefore, the Group's primary focus will be on Mainland China. In keeping with our stated position when we went public-namely that we're "Vitality & Professionalism. Our China Momentum"-we will continue to actively explore the China market. Mr. Hui concluded by vowing that the Group would always fight for the best possible returns for its shareholders.

Mr. Alex Chu Hon Fai, Deputy Chairman of the Group, added that the food and consumer product business will further expand, from distribution into manufacturing and retailing. In addition to Self-initiated projects, the Group is also now actively seeking appropriate projects for vertical integration. By playing a more collaborative and far-reaching role on the supply chain, the Group ultimately seeks to become a holistic, sustainable operator in the food and consumer products industry. The Group will further support the development of its logistics business via its other divisions, and will seek third-party relationships and other opportunities to create yet more market synergy.

Mr. Donald Yip Moon Tong, the Group's Chief Executive Officer, introduced the sales targets for coming 3 years and expressed his hopes that all units' revenue would meet the expected margins. In the year ahead, the Group will roll out five optimising standards: 1. Policy and Procedures Standardisation (to raise management quality); 2. Information Automation (using computerisation to improve efficiency); 3. Work Flow Streamlining (to enhance efficiency); 4. Group Orientation (to introduce maximum synergy), and 5. Innovation and Change (to achieve better results via business transformation). To this end, the Group will select an optimisation taskforce to oversee these targets, both in terms of revenue and service quality.

As a responsible corporate citizen, the Group will continue to support employees to participate in charity events. Moreover, the Group will also care for the career and personal development of its employees, and create an environmentally-friendly workplace. Finally, the Group will introduce a Customer Satisfaction Index as a platform for its trading department to measure customer satisfaction and chart improvements in service quality.