KUALA LUMPUR (Aug 28): Warisan TC Holdings Bhd (KL:WARISAN) narrowed its losses in the second quarter ended June 30, 2026 (2QFY2026), but warned that its automotive business could face constraints and weaker financial performance in the coming quarters after shareholders rejected its proposed recurrent related-party transactions (RRPTs) for the year.
The automotive and machinery group’s net loss for 2QFY2026 narrowed to RM6.02 million from RM17.34 million a year earlier, despite revenue falling 8.1% to RM184.87 million from RM201.18 million. No dividend was declared for the quarter, according to a bourse filing.
The exclusive distributor of GAC vehicles in Malaysia said that its loss before tax narrowed to RM4.3 million from RM16.0 million, mainly due to higher-tier incentives and lower EMZOOM model cost of sales following an impairment recorded last year.
The automotive segment brought in more than half of the group’s revenue for the first half ended June 30, 2026 (1HFY2026). Automotive sales in 1HFY2026 were stronger year-on-year, with segment revenue rising 15.1% to RM161.2 million from RM140.1 million a year earlier.
Warisan TC Holdings shareholders rejected several proposed RRPT mandates with Tan Chong Motor Holdings Bhd (KL:TCHONG) and its subsidiaries worth an estimated RM308.96 million and APM Automotive Holdings Bhd (KL:APM) worth an estimated RM179.35 million, at its 29th AGM in June.
The group said it remains positive on demand for its automotive business, supported by GAC and FOTON’s growing market presence. However, the rejection of the RRPT mandate by shareholders has created operational constraints, which the group expects to weigh on its financial performance this year.
The group plans to strengthen sales through marketing, product improvements and customer engagement, while exploring alternative measures to maintain business continuity. Overall, it remains cautious about the near-term outlook due to geopolitical uncertainty, changing trade policies, rising input costs and a competitive market.
The group posted a net loss of RM13.65 million for 1HFY2026 compared with a net loss of RM27.59 million the year before. Revenue came in slightly higher at RM324.06 million compared with RM317.56 million.