KUALA LUMPUR, Aug 25 — Tan Chong Motor Holdings Bhd’s second quarter results were significantly affected by the Covid-19 pandemic, swinging into a net loss of RM79.36 million as compared with a profit of RM19.05 million for the same quarter last year.
For the quarter ended 30 June 2020, revenue dipped to RM512.9 million versus RM1.06 billion previously.
“The local businesses were unable to operate during the movement control order (MCO) period. The showrooms and after-sales service centres resumed operations after the MCO in beginning of May 2020.”
Similarly, the businesses in the overseas markets have also been affected by the pandemic, albeit to a lesser extent, it said in a Bursa Malaysia filing here, today.
It said the disruptions had led to a decline in revenue and earnings before interest, taxes, depreciation and amortisation (Ebitda) of the automotive division compared with the preceding year.
For the first half of the year, net loss was RM88.62 million as against RM35.40 million, while revenue stood at RM1.2 billion as compared with RM2.14 billion previously.
It said the National Economic Recovery Plan (Penjana) to help stimulate the economy, which includes full sales tax exemption for locally assembled vehicles from June 15, 2020 to December 31, 2020, has brought back customers’ interest to purchase new vehicles.
“If the customers’ buying interest can gain sustainable traction, this may point to some recovery of motor vehicle sales in the second half of the year.”
In response to the challenging conditions caused by the pandemic, the group has since rationalised its operations and expects to further mitigate the adverse impact through other cost containment initiatives in order to maintain a sustainable financial position.
It will continue to take active measures to improve competitiveness in all the markets it operates in and maintain focus on the key business strategies to drive business growth and achieve operational sustainability. — Bernama
