Hotai Motor (2207) Q3 2024 earnings summary

Executive summary

• Consolidated revenue for the nine months ended September 30, 2024, was NT$211.6 billion, a slight increase from NT$210.0 billion year-over-year, with net income attributable to owners at NT$16.0 billion, down from NT$18.5 billion in the prior year.

• The group operates across vehicle distribution, installment trading, leasing, property insurance, and overseas sales, with the largest segment being Toyota and Hino vehicle distribution.

• The financial statements received a qualified review opinion due to certain subsidiaries and equity-method investments not being reviewed by independent auditors, representing 22% of total assets and 12% of total liabilities as of September 30, 2024.

Financial highlights

• Revenue for the nine months ended September 30, 2024, was NT$211.6 billion, up 0.8% year-over-year.

• Net income attributable to owners for the nine months was NT$16.0 billion, a 13% decrease from NT$18.5 billion in the prior year.

• Basic EPS for the nine months was NT$28.79, compared to NT$33.13 for the same period last year.

• Gross margin remained stable, with cost of goods sold at NT$146.0 billion for the nine months.

• Total assets as of September 30, 2024, were NT$507.1 billion, with total equity at NT$107.4 billion.

Outlook and guidance

• Management continues to focus on optimizing capital structure, supporting operations, and maximizing shareholder returns.

• The insurance subsidiary’s capital adequacy ratio improved to above 200% after implementing a financial improvement plan.