• EuroSports Global distributes and provides after-sales services for luxurious automobiles in Singapore.
• New business development: since 2018, EuroSports Global has commenced the development of its own-brand fully electric motorcycle.
• EuroSports Global reported a net loss of S$3.4m in FY21 (Apr 2020 to Mar 2021).

Luxury Product Distributor

• EuroSports Global (SGX:5G1) has been the only authorised dealer for Lamborghini automobiles in Singapore since 2001, and the exclusive distributor of Alfa Romeo automobiles since 2004. The group also carries customised automobiles supplied by Touring Superleggera. In addition, it operates the only authorised service centre in Singapore for all the automobile brands it represents.
• EuroSports Global is also the exclusive distributor of the deLaCour brand of watches in Singapore, Malaysia, Indonesia, Thailand and Brunei. Its subsidiary EuroSports Technologies Pte Ltd is currently developing a next-generation fully electric motorcycle.

Scorpio Electric

• Since 2018, EuroSports Technologies has been developing its own premium electric motorcycle (e-bike) under the brand Scorpio Electric. EuroSports Technologies is involved in the research and development of the e-bike and clean energy charging ecosystems. According to the FY19 Annual report, EuroSports Technologies will be responsible for the regional Memorandum of Understanding (MOU) with Strides Transportation Pte Ltd to develop, market and supply smart electric motorcycles.

Management’s Outlook Statement

• Management guided that given the volatile global economy and prolonged COVID-19 outbreak, EuroSports Global’s performance is expected to be negatively affected due to demand slowdown. The automobile industry outlook remains highly challenging amid intense competition and a highly regulated environment in Singapore.
• EuroSports Technologies will continue to incur development expenses and is not expected to generate meaningful revenue in the next 12 months.

Loss Making in FY21

• EuroSports Global reported a net loss of net cash position in FY21 from a net gearing of 0.52x in FY20.

Source: CGS-CIMB Research - 9 Jun 2021