The Board of Directors of Tan Chong Motor Holdings Berhad (“TCMH” or “the Company”) informs that TC Services Labuan (V) Pte Ltd, a wholly-owned subsidiary of TCMH Group, has on 14 February 2015 received a Certificate of Investment dated 13 February 2015 (“Investment Certificate”) from Bac Ninh Province People’s Committee, Vietnam confirming the registration of the establishment of its wholly-owned subsidiary named TC Services Vietnam Co., Ltd. (“TC Services Vietnam”) for the purposes of retail distribution of various kinds of automobiles,  provision of automotive maintenance, repair and spare parts services and the importation of  automotive spare parts and accessories, in accordance with the Laws of Vietnam (“Project”).  The Project is located in VSIP Bac Ninh Township and Service Complex, Phu Chan Commune, Tu Son Town, Bac Ninh Province near Hanoi.  

The total investment capital for the Project is USD10.0 million of which USD5.0 million is capital contribution as charter capital, from TC Services Labuan (V) Pte Ltd. The capital will be utilized for setting up TCMH Group’s first 3S operations in Vietnam, comprising showroom, a service centre and warehouse. The total investment capital including the charter capital will be funded via internally generated funds.

The Project has no material effect on the earnings, net assets and gearing of TCMH Group for the financial year ending 31 December 2015.

This announcement is dated 17 February 2015.