KUALA LUMPUR (Jan 11): Warisan TC Holdings Bhd’s unit has been appointed as the sole and exclusive distributor of electric vehicles (EV) for the Chinese car manufacturer, GAC AION.

In a bourse filing, Warisan said its wholly-owned subsidiary WTC Automotif (M) Sdn Bhd (WTCA) has entered into an agreement of distribution and service with GAC AION New Energy Automobile Company Ltd in respect of the appointment of WTCA as sole exclusive distributor of latter’s EV.

Under the agreement, WTCA is responsible for importing, distributing, selling and performing after-sale services and spare parts and accessories for GAC AION’s EV cars in Malaysia.

The agreement shall be effective for a term of three years.

WTCA, which is principally involved in the assembly, distribution and sale of commercial and passenger vehicles, said the distribution and service agreement will provide an opportunity for the group to diversify its business activities by expanding the product range to the EV sector to cater for a diversified customer base.

GAC AION is principally engaged in the research & development, manufacture, sales of electric vehicles, parts and components services in People’s Republic of China. The company was established in 2017 and is under GAC Group.

GAS ION has manufacturing plants in China (Guangzhou and Changsha) and Thailand.

Warisan said the agreement requires funding for working capital purposes and shall impact its gearing for the financial year ending Dec 31, 2024 (FY2024).

However, it said the agreement is not expected to have any material effect on its earnings per share and net asset per share for FY2024.

As at FY2022, its net gearing ratio stood at 0.66 times, up from 0.51 times in FY2021.

Warisan’s core business is rather diversified, comprising travel services, car rentals and distribution of construction equipment and machinery. It also distributes consumer products like Shiseido cosmetics and Wacoal lingerie.

Warisan is a sister company of Tan Chong Motor Holdings Bhd, which assembles and distributes Nissan and Renault marques.

Tan Heng Chew, president of both companies, holds 48.53% and 47.14% in Warisan and Tan Chong Motor, respectively, annual reports showed.

On Thursday (Jan 11), Warisan closed down four sen or 3.85% at RM1, giving the group a market capitalisation of RM67 million.