KUALA LUMPUR (Nov 27): Tan Chong Motor Holdings Bhd posted a net loss of RM50.70 million for the third quarter ended Sept 30, 2023 (3QFY2023), compared with a net profit of RM6.88 million in the same period last year, amid persistent soft market sentiments driven by inflationary pressures and stiffer competition in both the local and overseas markets.

Revenue fell 10.97% to RM649.82 million from RM729.87 million on the back of lower contribution from the automotive segment, according to the group's bourse filing.

On a quarter-on-quarter basis, the group’s net loss widened from RM18.13 million in 2QFY2023, despite revenue rising from RM619.19 million.

For the first nine months of FY2023, the group posted a bigger net loss of RM73.90 million against RM6.40 million in the same period last year, mainly due to lower sales, lower margin resulting from a weaker ringgit, and lower net foreign exchange gain which arose from transactions and outstanding balances denominated in foreign currencies.

Nine-month revenue declined 18.18% to RM1.89 billion from RM2.31 billion.

Tan Chong said despite headwinds and heightened competition, the group’s aim of building a sustainable business continues to be its top priority.

It added that it will continue to exercise prudence in managing its resources and drive better operational efficiencies, efficient cost management and cash flow management, "firmly placing the group in a better position to achieve long-term operational and financial sustainability".

Shares in Tan Chong Motor closed one sen or 0.97% lower at RM1.02, giving the group a market capitalisation of RM685.44 million. Year to date, the stock has risen by 42.03%.