Denway Motors Limited
Interim Report 2007
INTERIM RESULTS

The directors of Denway Motors Limited (the ‘‘Company’’) announce that the unaudited consolidated results
of the Company and its subsidiaries (the ‘‘Group’’) and its share of the results of jointly controlled entities,
associates and non-consolidated subsidiaries for the six months ended 30 June 2007 together with comparative
figures for the corresponding period in 2006 as follows:
Condensed Consolidated Income Statement
For the six months ended 30 June 2007
Unaudited
Six months ended 30 June
2007 2006

Note HK$’000 HK$’000
Continuing operations:
Turnover 4 395,834 352,036
Cost of sales (354,515) (32,062)
Gross profit 41,319 39,974
Selling and distribution costs (15,044) (4,093)
General and administrative expenses (29,906) (27,489)
Other operating income, net 75,553 7,636
Operating profit 5 71,922 6,028
Finance costs (464) (560)
Share of profits less losses of:
A jointly controlled entity 0 1,102,872 ,228,08
Other jointly controlled entities 122,268 52,08
Associates 4,846 4,43
Non-consolidated subsidiaries — 49
Profit before taxation 1,301,444 ,300,9
Taxation 6 (3,248) (4,008)
Profit for the period from continuing operations 1,298,196 ,296,
A discontinued operation:
Loss for the period from a discontinued operation — (8,093)
Profit for the period 1,298,196 ,288,08
Attributable to:
Equity holders of the Company 1,293,147 ,288,560
Minority interests 5,049 (542)
1,298,196 ,288,08

2
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Unaudited
Six months ended 30 June
2007 2006

Note HK$’000 HK$’000
Basic earnings/(losses) per share attributable
to equity holders of the Company
— continuing operations 7 17.20 cents 7.9 cents
— a discontinued operation 7 — (0.05) cents
17.20 cents 7.4 cents
Diluted earnings/(losses) per share attributable
to equity holders of the Company
— continuing operations 7 17.17 cents 7.6 cents
— a discontinued operation 7 — (0.05) cents
17.17 cents 7. cents
Interim dividend 8 375,868 375,868
Condensed Consolidated Income Statement (Continued)
For the six months ended 30 June 2007

3
Denway Motors Limited
Interim Report 2007
Condensed Consolidated Balance Sheet
As at 30 June 2007
Unaudited Audited
As at
30 June
As at
3 December
2007 2006

Note HK$’000 HK$’000
ASSETS

Non-current assets
Intangible asset 9 865,278 864,466
Leasehold land and land use rights 9 28,808 29,032
Property, plant and equipment 9 76,550 76,09
Investment properties 9 45,060 45,060
Interest in a jointly controlled entity 0 6,237,067 5,55,343
Interests in other jointly controlled entities 958,054 844,95
Interests in associates 61,736 56,577
8,272,553 7,467,538

Current assets
Inventories 108,792 83,07
Trade and other receivables , 6(c) 729,086 80,00
Current tax recoverable 2,162 ,033
Cash and bank balances
— pledged 27,299 26,393
— others 2,355,506 2,727,423
3,222,845 2,97,867

Total assets 11,495,398 0,385,405
EQUITY

Share capital and reserves attributable to
equity holders of the Company
Share capital 2 751,736 75,736
Reserves
Proposed final dividend — 45,042
Others 10,478,032 8,935,698
11,229,768 0,38,476

Minority interests 75,024 70,44
Total equity 11,304,792 0,208,97

4
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Unaudited Audited
As at
30 June
As at
3 December
2007 2006

Note HK$’000 HK$’000
LIABILITIES

Non-current liabilities
Borrowings 3 2,668 3,38
Deferred tax liabilities 1,030 ,797
3,698 4,935

Current liabilities
Trade and other payables 4, 6(c) 172,051 47,479
Current tax liabilities 10,962 3,277
Borrowings 3 3,895 0,797
186,908 7,553

Total liabilities 190,606 76,488
Total equity and liabilities 11,495,398 0,385,405
Net current assets 3,035,937 2,746,34
Total assets less current liabilities 11,308,490 0,23,852
Condensed Consolidated Balance Sheet (Continued)
As at 30 June 2007

5
Denway Motors Limited
Interim Report 2007
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2007
Unaudited
Attributable to equity holders
Share
capital
Share
premium
Capital
reserve
Exchange
reserve
Retained
earnings
Minority
interests Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Balance at January
2007 75,736 2,50,48 ,267,339 334,209 5,283,7 70,44 0,208,97

Currency translation
differences and net
income recognised
directly in equity — — 2,580 246,607 — (466) 248,72
Profit for the period — — — — ,293,47 5,049 ,298,96
Total recognised income
for the period — — 2,580 246,607 ,293,47 4,583 ,546,97
2006 final dividend paid — — — — (45,042) — (45,042)
Balance at 30 June 2007 75,736 2,50,48 ,269,99 580,86 6,25,86 75,024 ,304,792
Balance at January
2006 75,736 2,50,48 ,077,886 77,69 4,26,402 84,462 8,754,658

Currency translation
differences and net
income recognised
directly in equity — — 858 65,459 — (54) 65,803
Profit/(loss) for the
period — — — — ,288,560 (542) ,288,08
Total recognised income/
(loss) for the period — — 858 65,459 ,288,560 (,056) ,353,82
Disposal of a subsidiary — — 6 5,894 — (4,88) (8,908)
2005 final dividend paid — — — — (300,694) — (300,694)
2005 special dividend
paid — — — — (375,868) — (375,868)
Dividend paid to a
minority shareholder — — — — — (2,674) (2,674)
Transfer to capital
reserve — — 4 — (4) — —
Balance at 30 June 2006 75,736 2,50,48 ,078,774 49,044 4,873,386 65,94 9,420,335

6
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Condensed Consolidated Cash Flow Statement
For the six months ended 30 June 2007
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Net cash used in operating activities (8,951) (48,98)
Net cash generated from investing activities 49,827 ,038,357
Net cash used in financing activities (412,793) (729,792)
(Decrease)/increase in cash and cash equivalents (371,917) 259,647
Cash and cash equivalents at January 2,727,423 ,632,53
Cash and cash equivalents at 30 June 2,355,506 ,892,60
Analysis of the balances of cash and cash equivalents:
Cash and bank balances 2,355,506 ,892,60

7
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
1 General information
The Group is principally engaged in the manufacturing, assembly and trading of motor vehicles, the
manufacturing and trading of automotive equipment and parts in the People’s Republic of China (the
“PRC”) and the manufacturing and trading of audio equipment in Hong Kong.
The Company is a limited liability company incorporated in Hong Kong. The address of its registered
office is Room 80, Citicorp Centre, 8 Whitfield Road, Causeway Bay, Hong Kong.
The Company’s shares are listed on
These condensed consolidated interim financial information was approved for issue on 6 September
2007.

2 Basis of preparation
These condensed interim financial information for the six months ended 30 June 2007 has been prepared
in accordance with Hong Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting”
issued by the Hong Kong Institute of Certified Public Accountants and should be read in conjunction
with the annual financial statements for the year ended 3 December 2006.
3 Accounting policies
The accounting policies adopted are consistent with those of the annual financial statements for the
year ended 3 December 2006. As described in the annual financial statements for the year ended
3 December 2006, the following new standards, amendments to standards and interpretations are
mandatory for financial year ending 3 December 2007.
HKAS (Amendment) Capital Disclosures
HKFRS 7 Financial Instruments: Disclosures
HK(IFRIC)-Int 7 Applying the Restatement Approach under HKAS 29
Financial Reporting in Hyperinflationary Economies
HK(IFRIC)-Int 8 Scope of HKFRS 2
HK(IFRIC)-Int 9 Reassessment of Embedded Derivatives
HK(IFRIC)-Int 0 Interim Financial Reporting and Impairment
The adoption of these new standards, amendments to standards and interpretations has no significant
impact on the Group’s interim results and financial position.
The following new standards, amendments to standards and interpretations have been issued but are not
effective for 2007. Management is currently assessing the impact on the Group’s operations.
HKAS 23 (Revised) Borrowing Costs
HKFRS 8 Operating Segments
HK(IFRIC)-Int HKFRS 2 — Group and Treasury Share Transactions
HK(IFRIC)-Int 2 Service Concession Arrangements

8
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
4 Turnover and segment information
An analysis of the Group’s turnover and results for the period by principal business segments and
geographical segments is as follows:
Principal business segments:
Unaudited
Six months ended 30 June 2007
Trading of
motor vehicles
Manufacturing
and assembly of
motor vehicles
Manufacturing
and trading
of automotive
equipment and
parts
Manufacturing
and trading
of audio
equipment
Other
operations Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Turnover 268,812 — 5,717 121,305 — 395,834
Segment operating profit 3,030 — 2,124 8,055 24,687 37,896
Interest income 372 — 30,872 360 2,422 34,026
Operating profit 3,402 — 32,996 8,415 27,109 71,922
Finance costs (464)
Share of profits less losses of:
A jointly controlled entity 1,102,872 1,102,872
Other jointly controlled
entities 122,268 122,268
Associates 520 4,326 4,846
Profit before taxation 1,301,444
Taxation (3,248)
Profit for the period from:
Continuing operations 1,298,196
A discontinued
operation —
1,298,196

Depreciation 1,513 — 499 2,215 1,421 5,648
Amortisation — — — — 224 224

9
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
4 Turnover and segment information (Continued)
Principal business segments: (Continued)
Unaudited
Six months ended 30 June 2006
Trading of
motor vehicles
Manufacturing
and assembly of
motor vehicles
Manufacturing
and trading
of automotive
equipment and
parts
Manufacturing
and trading
of audio
equipment
Other
operations Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Turnover 229,674 — 5,228 7,34 — 352,036
Segment operating profit/
(loss) 2,078 — (3,304) 7,96 909 7,644
Interest income 275 — 3,944 83 4,082 8,384
Operating profit 2,353 — 640 8,044 4,99 6,028
Finance costs (560)
Share of profits less losses of:
A jointly controlled entity ,228,08 ,228,08
Other jointly controlled
entities 52,08 52,08
Associates ,047 3,366 4,43
Non-consolidated
subsidiaries 49 49
Profit before taxation ,300,9
Taxation (4,008)
Profit/(loss) for the period
from:
Continuing operations ,296,
A discontinued operation (8,093) (8,093)
,288,08

Depreciation ,25 — 489 2,02 ,208 4,843
Amortisation — — — — 225 225

0
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
4 Turnover and segment information (Continued)
Geographical segments:
Unaudited
Six months ended 30 June 2007
Turnover
Segment
operating
profit
Operating
profit
HK$’000 HK$’000 HK$’000
PRC 268,812 4,927 36,106

Hong Kong 121,305 32,742 35,524
Australia 5,717 227 292
395,834 37,896 71,922

Unaudited
Six months ended 30 June 2006
Turnover
Segment
operating
(loss)/profit
Operating
profit/(loss)
HK$’000 HK$’000 HK$’000
PRC 229,674 (,072) 3,33
Hong Kong 7,34 8,870 3,035
Australia 5,228 (54) (40)
352,036 7,644 6,028

5 Operating profit
Expenses included in cost of sales, selling and distribution costs, and general and administrative expenses
are analysed as follows:
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Depreciation of property, plant and equipment 5,648 4,843
Amortisation of leasehold land and land use rights 224 225
Staff costs (including directors’ emoluments) 23,688 2,828

Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
6 Taxation
Hong Kong profits tax has been provided at the rate of 7.5% (2006: 7.5%) on the estimated assessable
profit for the period. Taxation on overseas profits has been calculated on the estimated assessable profits
for the period at the rates of taxation prevailing in the countries in which the Group operates.
The amount of taxation (credited)/charged to the condensed consolidated income statement represents:
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Current taxation
Hong Kong profits tax (1,511) 334
PRC enterprise income tax 5,526 3,878
4,015 4,22

Deferred taxation
Hong Kong profits tax (767) (204)
3,248 4,008

2
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
7 Earnings per share
Basic
Basic earnings per share is calculated by dividing the profit attributable to equity holders by the weighted
average number of ordinary shares in issue during the period.
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Profit/(loss) attributable to equity holders of the Company
— continuing operations 1,293,147 ,292,606
— a discontinued operation — (4,046)
1,293,147 ,288,560

Weighted average number of ordinary shares in issue (’000) 7,517,359 7,57,359
Basic earnings/(losses) per share (HK cents) attributable to
equity holders of the Company
— continuing operations 17.20 7.9
— a discontinued operation — (0.05)
17.20 7.4

3
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
7 Earnings per share (Continued)
Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. The Company has share
options outstanding during the period which are potential dilutive ordinary shares. Calculation is done
to determine the number of shares that could have been acquired at fair value (determined as the average
daily market share price of the Company’s shares) based on the monetary value of the subscription rights
attached to outstanding share options. The number of shares calculated as above is compared with the
number of shares that would have been issued assuming the exercise of the share options.
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Profit/(loss) attributable to equity holders of the Company
— continuing operations 1,293,147 ,292,606
— a discontinued operation — (4,046)
1,293,147 ,288,560

Weighted average number of ordinary shares in issue (’000) 7,517,359 7,57,359
Adjustments for – share options (’000) 14,843 3,724
Weighted average number of ordinary shares for diluted earnings
per share (’000) 7,532,202 7,53,083
Diluted earnings/(losses) per share (HK cents) attributable to
equity holders of the Company
— continuing operations 17.17 7.6
— a discontinued operation — (0.05)
17.17 7.

4
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
8 Interim dividend
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Interim, declared, of HK5 cents (2006: HK5 cents)
per ordinary share (note (a)) 375,868 375,868
(a) At a meeting held on 6 September 2007, the directors declared an interim dividend of HK5 cents (2006: HK5 cents) per
ordinary share for the year ending 3 December 2007. This interim dividend is not reflected as dividend payable in these
condensed interim financial information, but will be reflected as an appropriation of retained earnings for the year ending
3 December 2007.
9 Capital expenditures
Unaudited
Intangible
asset —
goodwill
Leasehold
land and land
use rights
Property,
plant and
equipment
Investment
properties Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
As at January 2007 864,466 29,032 76,109 45,060 1,014,667
Exchange differences 812 — 1,033 — 1,845
Additions — — 5,056 — 5,056
Amortisation/depreciation — (224) (5,648) — (5,872)
As at 30 June 2007 865,278 28,808 76,550 45,060 1,015,696
As at January 2006 863,563 29,638 72,990 4,60 ,007,35
Exchange differences 277 — 307 — 584
Additions — — 0,496 — 0,496
Disposals — — (8) — (8)
Amortisation/depreciation — (225) (4,843) — (5,068)
As at 30 June 2006 863,840 29,43 78,832 4,60 ,03,245

5
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
10 Interest in a jointly controlled entity
This is a Sino-foreign equity joint-venture in which 50% of the equity capital, voting power and profit
sharing is held by a 00% owned subsidiary of the Company. The Group’s investment cost in this
company is HK$54,333,000 (2006: HK$54,333,000). The Group has no unilateral control over the
joint venture company. The joint venture period is 30 years from May 998.
The following amounts represent the Group’s 50% share of assets and liabilities, income and expenses of
the jointly controlled entity:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Assets:
Intangible assets

247,823 27,500

Land use rights 119,581 29,676
Property, plant and equipment 2,529,786 2,39,242
Current assets 7,189,719 6,497,050
10,086,909 9,235,468

Liabilities:
Non-current liabilities (2,668) (2,588)
Current liabilities (3,843,528) (3,678,64)
(3,846,196) (3,680,752)
Minority interests (3,646) (3,373)
6,237,067 5,55,343

6
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
10 Interest in a jointly controlled entity (Continued)
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Income 9,658,663 9,052,678
Expenses (8,555,791) (7,824,597)
Profit for the period 1,102,872 ,228,08
Included in this balance is a goodwill of approximately HK$54,372,000 (2006: HK$49,76,000) arising from the
acquisition of motor vehicle manufacturing business and a production plant in Guangzhou by the jointly controlled entity.
Capital commitments
At 30 June 2007, the Group’s share of capital commitments of the jointly controlled entity itself was as
follows:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Authorised but not contracted for 1,014,470 —
Contracted but not provided for — —

7
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
11 Trade and other receivables
Included in this balance are trade receivables of approximately HK$42,429,000 (2006: HK$45,7,000).
At 30 June 2007, the ageing analysis of the trade receivables, net of provision, was as follows:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Within 3 months 40,299 42,72
4 – 6 months 738 ,533
7 – 2 months 333 464
Over 2 months 1,059 993
42,429 45,7

The Group allows its trade customers an average credit period of 90 days.
12 Share capital
Ordinary shares of HK$0.1 each
Number of
shares HK$’000
Authorised:
At January 2006, 3 December 2006 and 30 June 2007 10,000,000,000 1,000,000
Issued and fully paid:
At January 2006, 3 December 2006 and 30 June 2007 7,517,358,534 751,736

8
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
12 Share capital (Continued)
Share options
Movements in the number of share options outstanding and their related weighted average exercise
prices are as follows:
Unaudited Audited
Six months ended
30 June 2007
Year ended
3 December 2006
Average
exercise price in
HK$ per share
Options
(’000)
Average
exercise price in
HK$ per share
Options
(’000)
At the beginning of the period/
year 2.15 41,032 2.2 48,324
Forfeited — — 2.5 (5,664)
Expired — — .33 (,628)
At the end of the period/year 2.15 41,032 2.5 4,032
All of the above outstanding options were exercisable. No option was exercised during the six months
ended 30 June 2007 and the year ended 3 December 2006.
Share options outstanding at the end of the period/year have the following expiry dates and exercise
prices:
Exercise price in Options (’000)
Expiry date HK$ per share 2007 2006
5 June 202 2.525 41,032 4,032

9
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
13 Borrowings
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Non-current
Long-term bank loans 2,668 3,38
Current
Trust receipt loans 256 4,959
Current portion of long-term bank loans 3,639 5,838
3,895 0,797

Total borrowings 6,563 3,935
The maturity of borrowings is as follows:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Within one year 3,895 0,797
In the second year 1,786 2,592
In the third to fifth year inclusive 882 546
6,563 3,935

(a) Borrowings of the Group totalling HK$6,563,000 (2006: HK$3,935,000) are secured by certain
leasehold land, property, plant and equipment, investment properties and pledged bank balances of
the Group.
(b) The weighted average effective interest rates of bank loans and trust receipt loans were 6.744% (2006:
7.386%) and 6.708% (2006: 7.750%) respectively.
(c) The carrying amounts of the borrowings approximate their fair value and are denominated in Hong
Kong dollar.

20
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
14 Trade and other payables
Included in this balance are trade payables of approximately HK$64,637,000 (2006: HK$33,639,000). At
30 June 2007, the ageing analysis of the trade payables was as follows:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Within 3 months 63,794 33,08
4 – 6 months 16 9
7 – 2 months 52 85
Over 2 months 775 327
64,637 33,639

15 Commitments
(a) Commitments under operating leases
At 30 June 2007, the Group had future aggregate minimum lease payments under non-cancellable
operating leases in respect of land and buildings as follows:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Not later than one year 7,094 9,442
Later than one year and not later than five years 20,903 9,693
Later than five years 28,160 34,628
56,157 63,763

2
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
15 Commitments (Continued)
(b) Capital commitments
At 30 June 2007, the Group had capital commitments in respect of purchase of property, plant and
equipment as follows:
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Authorised but not contracted for — —
Contracted but not provided for — 433
16 Related party transactions
(a) Related parties
The Company’s single largest shareholder is China Lounge Investments Limited (incorporated in
Hong Kong), which owns 37.9% of the Company’s shares. The remaining 62.09% of its shares are
widely held. China Lounge Investments Limited is a subsidiary of Guangzhou Automobile Industry
Group Company Limited (incorporated in the PRC).
Related parties are those parties which have the ability, directly or indirectly, to control the other
party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. There is no change in the names of significant parties and nature of
relationship with the Company since 3 December 2006 (Refer to 2006 annual report for details).
(b) Transactions with related parties
The following is a summary of significant transactions with related parties during the period:
Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000
Purchases from a jointly controlled entity 139,253 07,326
Sales to an associate 5,481 —

22
Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Selected Notes to Condensed Interim Financial Information
16 Related party transactions (Continued)
(c) Balances with related parties
Unaudited Audited
As at
30 June
2007

As at
3 December
2006

HK$’000 HK$’000
Included in trade and other receivables:
— a jointly controlled entity 616,239 5,769
— other jointly controlled entities 22,482—
Included in trade and other payables:
— the single largest shareholder of the Company 917 2,765
— an associate 2 769
— a minority shareholder of a subsidiary 443 443
— a fellow subsidiary 6,199 40

23
Denway Motors Limited
Interim Report 2007
INTERIM DIVIDEND

The directors have resolved to pay an interim dividend for the year ending 3 December 2007 of HK5 cents
per share which will be payable on Wednesday, 24 October 2007 to shareholders whose names appear on the
register of members of the Company on Friday, 2 October 2007.
CLOSURE OF REGISTER OF MEMBERS

The register of members of the Company will be closed from Monday, 8 October 2007 to Friday, 2 October
2007, both days inclusive, during which no transfer of shares will be registered. In order to qualify for the
interim dividend, all completed transfer documents accompanied by relevant share certificates must be lodged
with the Company’s share registrars, Tricor Abacus Limited, at 26th Floor, Tesbury Centre, 28 Queen’s Road
East, Wanchai, Hong Kong for registration not later than 4:30 p.m. on Friday, 5 October 2007.
BUSINESS REVIEW

For the six months ended 30 June 2007, unaudited turnover from the continuing operations of the Group was
approximately HK$395,834,000 (2006: HK$352,036,000); unaudited interim consolidated profit attributable
to equity holders of the Company was approximately HK$,293,47,000 (2006: HK$,288,560,000), an
increase of 0.4% over the same period of last year. Basic earnings per share from the continuing operations
was HK7.20 cents (2006: HK7.9 cents), an increase of 0.% over the same period of last year.
China’s national economy continued to sustain stable growth in the first half of 2007. According to the
statistics of China Association of Automobile Manufacturers, the number of vehicles produced and
sold nationwide in the first half of 2007 amounted to approximately 4,456,700 units and 4,373,800 units
respectively, representing an increase of approximately 22.8% and 23.7% respectively, of which the number
of sedans produced and sold amounted to approximately 3,5,400 units and 3,084,00 units respectively,
representing an increase of approximately 2.4% and 22.8% respectively.
For the six months ended 30 June 2007, an aggregate of 37,832 units and 33,67 units of vehicles were
produced and sold respectively by the Group through a jointly controlled entity (hereinafter the “Sedan
Company”) which is directly owned by the Company’s wholly-owned subsidiary, Guangzhou Auto Group
Corporation, representing an increase of approximately 9.% and 7.8% respectively over the same period of
last year.
Despite moderate growth in production and sales under intense market competition, the Sedan Company
continued to be a market leader in the respective vehicle categories. Odyssey ranked first in nationwide
premium multi-purpose vehicles market, while Accord ranked second in the category of single brand name
premium sedans.

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Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Guangzhou Automobile Group Component Co., Ltd. and its investments in other jointly controlled entities
(“Guangzhou Component”), in which the Group holds a 49% equity interest, contributed a 34.6% growth
in the Group’s share of its consolidated profits for the six months ended 30 June 2007 over the same period
of last year, exceeding the target set by its board of directors earlier this year. Their sound operation, fast
development of productivity and economic growth were based on enhanced planning and control, systematic
management and efficient operation so that they could facilitate a sustainable advantageous development,
foster new growth edges and implement key strategic projects in conducting the business.
Other business operations of the Group comprise the trading of vehicles, manufacturing of automotive
equipment and parts and manufacturing and trading of audio equipment. All the targets set out in the
medium-term plan as formulated by the Group have been achieved.
FUTURE PROSPECTS

According to the forecasts of the People’s Bank of China, the Chinese economy will continue to enjoy steady
and fast growth in the second half of 2007 with an estimated annual GDP growth of 0.8%, the highest in the
past 2 years. We are expecting a full-year growth for nationwide car sales at around 5% which is over 8.23
million units. With the increasing economic scale and the reducing cost of importing parts and components
benefited from a strong Renminbi, the overall profitability of the automobile industry will also increase.
On the other hand, there will be a mass launching of new models in the second half of 2007. As a result, it is
expected that the price index for passenger cars in China will keep a declining path and the intense competition
in the car market will continue.
The Sedan Company plans to expand its sales and service network and enhance its after-sales services in
the second half of the year in accordance with the decision of its board of directors. Efforts will be made to
strengthen management, maximize cost reductions and improve product quality. Meanwhile it will seek to
raise its competitive strengths by increasing the degree of domestic production and dedicating its full effort to
complete the full-year target for production and sales set by its board of directors.
On 9 July 2007, Guangzhou Honda Automobile Research and Development Company Limited was formally
established. It is the first automobile research and development institution in China that is independently
funded by a joint venture enterprise and operated by an independent legal person. Solely funded by the
Sedan Company, it is capable of independently carrying out car development projects including conceptual
design, modeling, trial of assembled vehicles and testing. With the launch of this research and development
branch, the Sedan Company becomes the first joint venture automobile manufacturer in China announcing
its strategy on independent proprietary brands development. It is also the first to make significant investments
in establishing a research and development institution dedicated to the development of proprietary brands. In
addition, the Sedan Company has obtained the government approval on its in-house production of engines
which can well-equip the Sedan Company for further expansion in its production capacity in the future.
In the next six months, while continuing the development of the sedan plants, Guangzhou Component will
seek to maintain rapid growth through expansion in production scale, cost reductions, quality enhancements,
increase in the degree of domestic production and management improvements. Yet it will also keep an eye on
any opportunities for new projects.
The Group will continue to identify opportunities for development in the automobile industry and the Board
is confident that the Group is well-positioned to grasp such opportunities for further development, thereby
increasing returns for its shareholders.

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Denway Motors Limited
Interim Report 2007
FINANCIAL SUMMARY

The turnover from the continuing operations of the Group for the period ended 30 June 2007 was about
HK$395,834,000, representing an increase of about 2.4% compared with that of 2006.
On 7 February 2006, the Group announced a connected transaction to dispose the equity interest in a
subsidiary (“the disposed subsidiary”) solely conducting business in the manufacturing and assembly of motor
vehicles. In accordance with Hong Kong Financial Reporting Standards (“HKFRS”), the relevant items
relating to the disposed subsidiary in the income statement in 2006 were classified separately as discontinued
operations. The transaction was approved by independent shareholders on 23 March 2006.
The turnover of the trading of motor vehicles increased by HK$39,38,000 which represented an increase
of about 7.0% in 2007 compared with that of 2006. The operating profit of this segment increased by
HK$,049,000 or an increase of about 44.6%. The turnover of the manufacturing and trading of automotive
equipment and parts increased by HK$489,000 which represented an increase of about 9.4% in 2007 compared
with that of 2006. The operating profit of this segment increased by HK$32,356,000 in 2007, mainly due
to an increase of an interest income. The turnover of the manufacturing and trading of audio equipment
increased by HK$4,7,000 which represented an increase of about 3.6% in 2007, mainly due to an increase
of sales orders. The operating profit of this segment increased by HK$37,000 in 2007, mainly due to effective
cost control. The order on hand of the Group for the business of the manufacturing and trading of audio
equipment was about HK$6,24,000 as at 30 June 2007.
The total borrowings of the Group decreased from about HK$3,935,000 at the end of 2006 to about
HK$6,563,000 at 30 June 2007, mainly due to repayment of the borrowings. The Group maintained a low
ratio of borrowings relative to total equity at about 0.% as at 30 June 2007 and 3 December 2006. The ratio
of total liabilities relative to total equity remained at about .7% as at 30 June 2007 and 3 December 2006.
The Group’s borrowings were secured by leasehold land, buildings and investment properties with a total net
book value of about HK$40,625,000 and bank balances of about HK$27,299,000.
The Group had cash and bank balances of about HK$2,382,805,000 as at 30 June 2007. This included the net
cash used in operating activities of about HK$8,95,000. During the period, the payment of dividend by the
Company was financed by the receipt of cash dividends from the investment vehicles.
The Group’s general and administrative expenses for the period ended 30 June 2007 were about
HK$29,906,000, representing an increase of about 8.8% compared with that of 2006, mainly due to larger
operating scale of the Group. The finance costs decreased by HK$96,000, mainly due to reduction of the total
borrowings of the Group. The interest cover remained at a high level of 2,806 multiples in 2007 compared
to that of 2,323 multiples in 2006. The Group enjoyed the benefit of currency appreciation of Renminbi, the
major operating currency of the Group and resulted in a significant exchange gains upon realization.
Share of profits from associates were about HK$4,846,000 for the period ended 30 June 2007, which
represented an increase of about 9.8% compared with that of 2006.
The Group shared profits of about HK$22,268,000 from other jointly controlled entities for the period ended
30 June 2007, which represented an increase of about 34.6% compared with that of 2006, mainly due to the
continuous growth of sales orders from major sedan manufacturers in the PRC.
Share of profit from a jointly controlled entity for the period ended 30 June 2007 remained the major source of
profit for the Group, which contributed about HK$,02,872,000, and represented a decrease of about 0.2%
compared with that of 2006, mainly due to competitive environment of the sedan market in the PRC.

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Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
EMPLOYEES AND REMUNERATION POLICY

As at 30 June 2007, the Group employed approximately ,500 (2006: ,500) staff in the PRC, Hong Kong and
Australia.
The remuneration package adopted by the Group includes discretionary bonus and share options being
granted to eligible staff based on the Group’s performance and individual performance. Staff training and
development programs are conducted on a regular basis.
SHARE OPTION SCHEME

The Company has a share option scheme which was adopted on 6 June 2002 (“Share Option Scheme”) and
remains in force for a period of 0 years from the date of adoption. Each option granted under the Share
Option Scheme gives the holder the right to subscribe for one share of the Company. Movement of the share
options during the period was as follows:
Number of options
Name
As at
1 January 2007
Exercised, lapsed or
cancelled during the period
As at
30 June 2007
Zhang Fangyou 8,528,000 — 8,528,000
Lu Zhifeng 7,684,000 — 7,684,000
Yang Dadong 5,664,000 — 5,664,000
Zeng Qinghong 5,664,000 — 5,664,000
Zhang Baoqing 6,488,000 — 6,488,000
Ding Baoshan 5,664,000 — 5,664,000
Lee Ka Lun ,340,000 — ,340,000
Notes:
() The above options were granted on 7 August 2003 at an adjusted exercise price of HK$2.525 per share. The exercisable period
is from 7 August 2003 to 5 June 202. The consideration paid by each grantee for the options granted was HK$. The adjusted
closing price of the share immediately before the date on which the options were granted was HK$2.075.
(2) No option was granted, exercised, lapsed or cancelled during the year.
adjusted for one for one bonus issue shares in May 2004.

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Denway Motors Limited
Interim Report 2007
DIRECTORS’ INTERESTS IN SHARES
As at 30 June 2007, the interests and short positions of the directors (who held office on 30 June 2007) in the
shares, underlying shares and debentures of the Company or any of its associated corporations (within the
meaning of Part XV of the Securities and Futures Ordinance (the “SFO”) as recorded in the register required
to be kept by the Company under Section 352 of the SFO or as otherwise notified to the Company and The
Stock Exchange of Hong Kong Limited pursuant to the Model Code for Securities Transactions by Directors
of Listed Companies were as follows:
(a) Long positions in shares of the Company
Name of Director
Number of shares
Personal interest
(as Beneficial Owner)
Percentage of
shareholding as at
30 June 2007
Cheung Doi Shu 3,000,000 0.04%
Lee Ka Lun 00,000 0.003%
(b) Long positions in underlying shares in respect of share options granted by the
Company
Name of Director
Number of underlying
shares in respect of
options granted
Personal Interest
(as Beneficial Owner)
Percentage of
shareholding as at
30 June 2007
Zhang Fangyou 8,528,000 0.%
Lu Zhifeng 7,684,000 0.0%
Yang Dadong 5,664,000 0.08%
Zeng Qinghong 5,664,000 0.08%
Zhang Baoqing 6,488,000 0.09%
Ding Baoshan 5,664,000 0.08%
Lee Ka Lun ,340,000 0.02%
Note: Details of the options held by the directors are disclosed in the section “SHARE OPTION SCHEME” in this report.
Save as disclosed above, as at 30 June 2007, none of the directors or chief executive of the Company had
any interest or short position in the shares, underlying shares or debentures of the Company or any of its
associated corporations (within the meaning of Part XV of the SFO) as recorded in the register required to be
kept under section 352 of the SFO or as otherwise notified to the Company and The Stock Exchange of Hong
Kong Limited pursuant to the Model Code for Securities Transactions by Directors of Listed Companies.
Apart from the share option schemes, at no time during the six months ended 30 June 2007 was the Company
or its holding companies or any of its subsidiaries or fellow subsidiaries a party to any arrangements to enable
the directors of the Company to acquire benefits by means of acquisition of shares in, or debentures of, the
Company or any other body corporate.

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Denway Motors Limited
Interim Report 2007
Denway Motors Limited
Interim Report 2007
Save as disclosed above and in the section “SHARE OPTION SCHEME”, during the six months ended
30 June 2007, no rights to subscribe for equity or debt securities of the Company has been granted by the
Company to, nor have any such rights been exercised by, any directors and chief executives of the Company.
DIRECTORS’ INTEREST IN COMPETING BUSINESS
The interests of the directors in the businesses which compete or may compete, either directly or indirectly,
with the business of the Group, jointly controlled entities, associates and its non-consolidated subsidiaries
(“Competing Business”) were as follows:
1. Core Business Activities of the Group, jointly controlled entities, associates and its
non-consolidated subsidiaries
() Manufacturing and trading of motor vehicles in the PRC.
(2) Manufacturing and trading of automotive equipment and parts in the PRC.
(3) Manufacturing and trading of audio equipment in Hong Kong.
2. Interests in Competing Business
Name of Director Name of Company Nature of Interest
Competing
Business
Zhang Fangyou Guangzhou Toyota Motor Co. Ltd.
(Note 1)
Chairman ()
Zeng Qinghong Guangzhou Automobile Group
Business Co. Ltd. (Note 2)
Chairman (2)
Zhang Baoqing Guangzhou Automobile Group
Business Co. Ltd. (Note 2)
Director (2)
Note 1: Guangzhou Toyota Motor Co. Ltd. (“Guangzhou Toyota”) is owned as to 50% by Guangzhou Automobile Group
Co. Ltd. and as to 50% by Toyota Motor Corporation. Guangzhou Automobile Group Co. Ltd. is a subsidiary of
Guangzhou Automobile Industry Group Co. Ltd., the ultimate holding company of the Company.
There are 0 directors on the board of Guangzhou Toyota, and Mr. Zhang Fangyou is the only common director in both
the Company and Guangzhou Toyota. The Group is therefore capable of carrying on its business independently, and at
arm’s length from the business of Guangzhou Toyota.
Note 2: Guangzhou Automobile Group Business Co. Ltd. (“GZ Business Co.”) is a wholly owned subsidiary of Guangzhou
Automobile Group Co. Ltd. There are 5 directors on the board of GZ Business Co. Mr. Zeng Qinghong and Mr. Zhang
Baoqing are the only common directors in both the Company and GZ Business Co. The Group is therefore capable of
carrying on its business independently of, and at arm’s length from the business of GZ Business Co.
Save as disclosed above and within the knowledge of the directors, as at 30 June 2007, none of directors and
their respective associates had any interest in a business which competes or may compete, either directly or
indirectly, with the business of the Group as required to be disclosed pursuant to the Listing Rules.

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Denway Motors Limited
Interim Report 2007
SUBSTANTIAL INTERESTS IN THE SHARE CAPITAL OF THE COMPANY

As at 30 June 2007, the corporations having an interest in 5% or more of the issued share capital of the
Company as recorded in the register of interests in shares and short positions required to be kept under
Section 336 of the Part XV of SFO were as follows:
Name
Long Position
in shares
Percentage of
total shareholding
as at 30 June 2007 Note
China Lounge Investments Limited 2,849,544,904 37.9% (a)
Guangzhou Automobile Group Co. Ltd. 2,849,544,904 37.9% (b)
Guangzhou Automobile Industry Group Co. Ltd. 2,849,544,904 37.9% (c)
Templeton Asset Management Limited 907,573,26 2.07% (d)
Notes :
(a) As at 30 June 2007, China Lounge Investments Limited held 2,849,544,904 shares of Company.
(b) As at 30 June 2007, China Lounge Investments Limited was wholly-owned by Guangzhou Automobile Group Co. Ltd. which was
accordingly deemed to be interested under the SFO in 2,849,544,904 shares.
(c) As at 30 June 2007, Guangzhou Automobile Group Co. Ltd. was 9.93% owned by Guangzhou Automobile Industry Group Co.
Ltd. which was accordingly deemed to be interested under the SFO in 2,849,544,904 shares of the Company.
(d) Templeton Asset Management Limited was interested in 907,573,26 shares in the Company as investment manager.
Save as disclosed herein, no other person was recorded in the register of substantial shareholders maintained
under Section 336 of Part XV of the SFO as having an interest in 5% or more of the issued share capital of the
Company as at 30 June 2007.
CORPORATE GOVERNANCE

In 2005, the Board formulated the Denway Code on Corporate Governance (“Denway Code”) to provide
guidance on the Company’s application of corporate governance principles. Denway Code incorporates all
mandatory code provisions and part of the recommended best practices that the Board considers as reasonable
and appropriate to the Company, as set out in the Code on Corporate Governance (“CG Code”) in Appendix
4 in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. It also
incorporates standards for securities transactions by Directors that are not less exacting than the Model Code
for Securities Transactions by Directors of Listed Issuers (“Model Code”) as set out in Appendix 0 of the
Listing Rules.
During the six months ended 30 June 2007, the Company complied with all code provisions as set out in the
CG Code.
All directors have confirmed, having made specific enquiries, that the required standard set out in the Model
Code had been complied with throughout the six months period ended 30 June 2007.

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Denway Motors Limited
Interim Report 2007
The Audit Committee comprises three independent non-executive directors, namely Mr. Lee Ka Lun, Mr.
Cheung Doi Shu and Mr. Fung Ka Pun. The Audit Committee has reviewed with the management the
accounting principles and practices adopted by the Group and discussed auditing, internal control and
financial reporting matters including the review of the unaudited consolidated interim financial results for the
six months ended 30 June 2007.
PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED
SECURITIES

The Company has not redeemed any of its shares during the six months ended 30 June 2007. Neither the
Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s listed securities
during the six months ended 30 June 2007.
LIST OF DIRECTORS

As at the date of this report, the board of directors of the Company comprises the following directors:
Executive Directors:
Mr. Zhang Fangyou, Mr. Lu Zhifeng, Mr. Yang Dadong, Mr. Zeng Qinghong, Mr. Zhang Baoqing and Mr.
Fu Shoujie
Independent Non-Executive Directors:
Mr. Cheung Doi Shu, Mr. Lee Ka Lun and Mr. Fung Ka Pun
Mr. Ding Baoshan resigned as Executive Director on 6 August 2007 and Mr. Fu Shoujie was appointed as Executive Director on
the same date.
By the Order of the Board
Zhang Fangyou
Chairman
Hong Kong, 6 September 2007