DRB-Hicom's Q1 net loss widens slightly to RM169.71 million

PETALING JAYA: DRB-Hicom Bhd's net loss slightly widened to RM169.71 million for the first quarter ended June 30, 2017 from RM169.3 million in the previous corresponding period, due to higher cost of sales, operating expenses and taxation.

Its revenue, however, soared 33.4% from RM2.5 billion to RM3.34 billion, thanks to better performance from Proton Holdings Bhd and Pos Malaysia Bhd.

The group said in a filing with the stock exchange that following the signing of the definitive agreement between DRB-Hicom and Chinese automaker Zhejiang Geely Holding Group Ltd (ZGH) in late June, teams from both companies and Proton have been working hard towards getting the necessary regulatory approvals for the transaction.

"Consent from shareholders of DRB-Hicom will also be sought at the EGM of the company that will be held on August 30," it noted.

DRB-Hicom said the deal with ZGH will put Proton in a stronger position as the Chinese group will bring along its technology and expertise to Malaysia's first carmaker in an effort to reclaim the mantle in the domestic car market.

DRB-Hicom shares fell two sen to close at RM1.59 on Friday, with some 3.7 million shares changing hands. It has a market capitalisation of RM3.07 billion.