News

The Board of Directors of Tan Chong Motor Holdings Berhad (“TCMH”) informs that TC Motorcycles (Vietnam) Co. Ltd. (“TC Motorcycles Vietnam”), a wholly-owned subsidiary of TCMH, has entered into a Distributorship Agreement (“the Agreement”) with Kawasaki Heavy Industries Ltd. (“KHI”) of Japan on 1 December 2014 in respect of the appointment of TC Motorcycles Vietnam as an exclusive distributor to sell completely built-up KAWASAKI brand sports type motorcycles (excluding mopeds and scooters) and spare parts and accessories in the Socialist Republic of Vietnam. The distributorship appointment is for a period of three (3) years and is subject to renewal.

TC Motorcycles Vietnam was established with an investment certificate dated 31 October 2014 issued by the Ho Chi Minh City People’s Committee to import motorcycles and motorcycle components for sale to registered dealers in Vietnam and for export. Further details on TC Motorcycles Vietnam can be found in the announcement made by TCMH to Bursa Malaysia on 10 November 2014.

The distributorship appointment by KHI will provide the TCMH Group an opportunity to enter the niche market for sports type motorcycles at the time when the Vietnamese Government has relaxed regulations on issuance of A2 licenses for motorbikes with engine capacity of more than 175 cc to the general public effective 1 March 2014.

The distributorship appointment has no material effect on the earnings, net assets and gearing of the TCMH Group for the financial year ending 31 December 2014.

None of the directors and/or substantial shareholders of TCMH and/or persons connected with them, has any interest, direct or indirect, in the said appointment.

This announcement is dated 1 December 2014.