EP Manufacturing’s MOU for EV distribution venture lapses

KUALA LUMPUR (May 8): EP Manufacturing Bhd (EPMB)’s deal for collaboration talks with Johor-based Cahaya Bumi Sdn Bhd to venture into the business of new and used imported car distribution, in particular electric vehicles (EVs) and its localisation activity, has come to an end.

“The board of directors of the company wishes to update that the MOU (memorandum of understanding) has lapsed and both parties mutually agreed not to extend the MOU,” the automotive parts and components maker said in a bourse filing on Monday (May 8), adding that the MOU has therefore ceased to have any effect.

The company’s filing did not include a rationale behind its decision to not extend the deal.

Cahaya Bumi is an imported used car company, which has a line-up including imported luxury brands Ferrari, Lamborghini and Rolls Royce.

EPMB’s unit EP 4Wheeler Sdn Bhd (EP4W) inked the MOU with Cahaya Bumi back in August last year, which laid out a six-month period for the pair to execute a definitive agreement for the new and used imported car distribution business collaboration.

According to EPMB, the MOU was intended to enable EP4W and Cahaya Bumi to obtain a local exclusive distribution agent or franchise holder for the country and assembly of EVs from a reputable EV manufacturer and establish a production and localisation plan to assemble the EVs in Malaysia.

Shares in EPMB closed down half a sen or 0.94% at 52.5 sen on Monday, giving the company a market capitalisation of RM115.65 million. Over the past three weeks, the counter has fallen 38.24% from April 17’s close of 85 sen.

For the financial year ended Dec 31, 2022 (FY2022), EPMB swung back to the black with a net profit of RM399,000 versus a net loss of RM8.19 million a year earlier, on the back of a 49.58% rise in revenue to RM516.33 million, from RM345.19 million previously.

The company’s borrowings stood at RM177.46 million as at end-2022, while assets stood at RM612.3 million.

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EP Manufacturing inks deal to venture into EV distribution