Tan Chong expects 86% fall in profit after tax for 1st half, due to ‘severe drop in sales’

SINGAPORE – Auto dealer Tan Chong International is expecting an 86.6 per cent fall in profit after tax to HK$25 million (S$4.3 million) in the first half of 2024, from HK$187 million in the same period of 2023.

This comes after the group experienced a “severe drop in sales” in its automotive division in the first half of 2024, compared with the same period the year prior, Tan Chong said in a profit warning guidance on July 8.

Markets with “significant losses” include Malaysia, Thailand, Taiwan, Singapore and the Philippines.

Total profit from operations in the first half of 2024 dropped to HK$250 million, from HK$432 million in the year-ago period.

“From the current relatively strong booking of orders in our automotive division, we expect the second half of 2024 to perform much better,” the auto dealer added.

On July 8, Tan Chong also announced that it is expected to record an unaudited, unrealised gain on its investments – designated as at fair value through other comprehensive income – of HK$262 million for the six months ended June 30, 2024, following share price changes of its listed investments.

This is compared with an unrealised gain of HK$309 million for the corresponding six months period in the year-ago period, it said.

The group’s financial performance is expected to be published before the end of August 2024.

Shares of Tan Chong last closed at HK$1.29 on July 5. THE BUSINESS TIMES

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