Markets with ‘significant losses’ include Malaysia, Thailand, Taiwan, Singapore and the Philippines
AUTO dealer Tan Chong International is expecting an 86.6 per cent fall in profit after tax to HKD$25 million (S$4.3 million) in the first half of 2024, from HKD$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 Monday (Jul 8).
Markets with “significant losses” include Malaysia, Thailand, Taiwan, Singapore and the Philippines.
Total profit from operations in H1 2024 dropped to HKD$250 million, from HKD$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 Monday, 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 HKD262 million for the six months ended Jun 30, 2024, following share price changes of its listed investments.
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This is compared with an unrealised gain of HKD309 million for the corresponding six months period in the year-ago period, Tan Chong said.
The group’s financial performance is expected to be published before the end of August 2024.
Shares of Tan Chong last closed at HKD$1.29 on Friday.
