KUALA LUMPUR (Aug 25): Tan Chong Motor Holdings Bhd (TCMH), the franchise holder of Nissan cars in Malaysia, reported today a second quarter net loss at RM79.36 million versus a net profit of RM19.43 million a year earlier, as the Covid-19 pandemic significantly affected the group's automotive division's performance.

In a statement with Bursa Malaysia today, TCMH said revenue fell to RM512.89 million in the second quarter ended June 30, 2020 (2QFY20) from RM1.07 billion.

"The [automotive division's] performance was significantly affected by the Covid-19 pandemic which has plagued global and local economic activities. The local businesses were unable to operate during the Movement Control Order (MCO) period.

"The showrooms and aftersales service centres resumed operations after the MCO in beginning of May 2020. Similarly, the businesses in the overseas markets have also been affected by the pandemic, albeit to a lesser extent. These disruptions have led to a decline in revenue and EBITDA (earnings before interest, taxes, depreciation and amortisation) compared to preceding year," TCMH said.

According to TCMH, the group's automotive division involves vehicle assembly, manufacturing, distribution and aftersales service.

In quarterly terms, TCMH said 2QFY20 revenue fell to RM512.89 million from RM734.29 million in 1QFY20.

TCMH said its 2QFY20 automotive division's revenue and EBITDA were lower due to a significant decline in vehicle sales, which were impacted by the MCO and weak consumer sentiment following the Covid-19 pandemic.

For the first half of FY20, TCMH said the group's cumulative net loss stood at RM88.62 million versus a net profit of RM35.41 million a year earlier while revenue was lower at RM1.25 billion versus RM2.15 billion.

Looking ahead, TCMH said that in response to the challenging conditions caused by the pandemic, the group has since rationalised its operations and expects to further mitigate the adverse impact through other cost containment initiatives in order to maintain a sustainable financial position.

"The group will continue to take active measures to improve its competitiveness in all the markets we operate in and maintain our focus on the key business strategies to drive business growth and achieve operational sustainability," said TCMH, which also offers financial services.

Besides Malaysia, TCMH said it also has operations in Vietnam, Myanmar, Laos and Cambodia.

At Bursa today, TCMH's share price closed up one sen or 0.99% at RM1.02 for a market value of RM665.5 million.

The stock saw 152,800 shares traded.

Edited by Chong Jin Hun