Bursa Announcements

1. Introduction

The Board of Directors of Tan Chong Motor Holdings Berhad (“TCMH” or “Company”) wishes to announce that TC Services Vietnam Co., Ltd (“TCSV”), an indirect wholly-owned subsidiary of TCMH, had on 18 May 2020 entered into an Overseas Distribution Agreement (“ODA”) with SAIC Motor International Co., Ltd (“SMIL”) for the appointment of TCSV as the sole and exclusive importer and distributor for the sale of Completely-Built-Up (“CBU”) MG brand vehicles (“MG Brand Vehicles”) and after-sales spare parts, and provider of after-sales services for the CBU MG Brand Vehicles in Vietnam, including the appointment of dealers to perform these obligations and activities.

2. Information on TCSV

TCSV is an indirect wholly-owned subsidiary of TCMH incorporated in Vietnam on 13 February 2015. TCSV is authorised to engage in retail distribution of various kinds of automobiles, provision of automotive maintenance and repair and spare parts services in accordance with the laws of Vietnam.

3. Information on SMIL

SMIL is a wholly-owned subsidiary of SAIC Motor Corporation Limited (“SAIC Motor”) incorporated under the laws of the People’s Republic of China with register number 91310000078199718N and having its principal place of business at 429H Room, No. 188, Ye Sheng Rd, China (Shanghai) Pilot Free Trade Zone, Shanghai, P.R.C. SMIL is engaged in the automotive business, including but not limited to the sale of automobiles and relevant components.

SAIC Motor is the largest automobile group in China. Its businesses include research and development, manufacturing, sales and after-sales of vehicle, auto components, auto-related service and trade, auto finance, international manufacturing and global international operations which include but not limited to the United States of America, United Kingdom, Thailand, Asia Pacific and Europe.  

4. Salient Terms of the ODA

Pursuant to the ODA, SMIL grants TCSV, the sole and exclusive right to:

a) import and sell MG Brand Vehicles and after-sales spare parts, and provide after-sales services for the MG Brand Vehicles in Vietnam, either by itself or through appointed dealers; and

b) use SMIL’s trademarks, trade names, design patterns, brands or similar symbols (“Symbols”) to perform the abovementioned obligations in Vietnam and similarly, for TCSV’s dealers to use the same.

The term of the ODA shall be for a period of five (5) years commencing from the date of execution of the ODA by both TCSV and SMIL.

5. Rationale

The ODA will provide TCMH with opportunity to expand its foothold in the automotive industry in Vietnam.

6. Financial Effects

The ODA will not have any effect on the earnings per share, net assets per share and gearing of TCMH Group for the financial year ending 31 December 2020, and has no effect on the share capital of TCMH and shareholdings of its substantial shareholders.

7. Directors’ and Major Shareholders’ Interests

None of the Directors, major shareholders and/or persons connected with the Directors and major shareholders of TCMH, has any interest, direct or indirect, in the ODA.

8. Approval Required

The ODA is not subject to the approval of the shareholders of TCMH or any relevant authorities.

9. Directors’ Statement

The Board of Directors of TCMH is of the opinion that the ODA is in the ordinary course of business and in the best interest of TCMH Group.

This announcement is dated 18 May 2020.