KUALA LUMPUR (Dec 1): Tan Chong Motor Holdings Bhd (TCMH) has been appointed the exclusive distributor of completely built-up Kawasaki sports motorcycles, spare parts and accessories in Vietnam.

In a filing to Bursa Malaysia, TCMH said its wholly owned subsidiary TC Motorcycles (Vietnam) Co Ltd has entered into a three-year distributorship agreement with Japan's Kawasaki Heavy Industries Ltd (KHI) today.
 
"The appointment is subject to renewal," it added.
 
The group said TC Motorcycles Vietnam was established with an investment certificate on Oct 31 this year from the Ho Chi Minh City People's Committee to import motorcycles and motorcycle components for sale to registered dealers in Vietnam and for export.
 
"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 [the] issuance of A2 licenses for motorbikes with engine capacity of more than 175 cc to the general public effective March 1, 2014," TMCH said.
 
It said the distributorship appointment has no material effect on the earnings, net assets and gearing of the group for the financial year ending Dec 31, 2014.
 
TCMH recorded a net profit of RM1.87 million in the third quarter ended Sept 30, 2014, a steep 94.1% drop from RM31.67 million recorded in the same period last year.
 
Its share closed at RM3.81 today after shedding 10 sen or 2.56%, giving it a market capitalisation of RM2.49 billion.