Trans-China Automotive Holdings VI2 says it expects to report a net loss for the FY2023 ended Dec 31, 2023, based on a preliminary assessment of the unaudited financial results for the full year period.
In a profit guidance filing, the company says the loss is mainly due to low consumer confidence and a competitive car market in China, where luxury and super-luxury car sales have been affected.
In addition, the company’s Guangzhou Genesis dealership and Shenzhen BMW Service Center opened in 2022 and Changsha and Foshan Genesis dealerships in 2023 have not reached profitability. The planned rationalisation of the company’s supercar showrooms has also resulted in the impairment of assets related to its supercar division.
The company has advised that further details of its performance will be set out in its unaudited financial results for FY2023, to be released on or before Feb 27.
Shares in Trans-China Automotive VI2 closed unchanged at 10.5 cents on Jan 19.
