SINGAPORE (Aug 29): Tan Chong International posted earnings of HK$119 million (S$20.9 million) for 1H16, a 30.9% decrease from the earnings of HK$172.3 million in 1H15.

But gross margins declined as the Japanese Yen appreciated by 13% on average against its operating currencies.

There were also increases in distribution costs from its complete built-up market segments, and the incremental cost incurred in scaling up its complete knock-down operations to gain market presence and traction.

Revenue rose 23.8% to HK$8.9 million, driven by the growth in both its passenger and commercial vehicle retail and distribution operations. Vehicle sales reached 20,038 units for the half year period, compared with 14,725 units in 1HFY15.

Both Nissan and Subaru brands recorded double-digit increases in sales volume.

The group’s transportation logistics business Zero Co. continued to do well, contributing 31% to group revenue.

Tan Chong expects to see continued uncertainty in Asia’s automotive markets and will continue to focus on increasing cost efficiencies while developing the infrastructure network needed to strengthen its business.

The group declared an interim dividend of 2 HK cents.

Shares of Tan Chong last traded at HK$2.48.