MEMORANDUM OF UNDERSTANDING BETWEEN TQ MANUFACTURING SDN. BHD. AND SAIKE REPT POWER BATTERY SYSTEM CO., LTD.

1.  INTRODUCTION

The Board of Directors of Tan Chong Motor Holdings Berhad ("TCMH" or the Company) wishes to announce [pursuant to Paragraphs 9.03(2) and 9.04 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad] that TQ Manufacturing Sdn. Bhd. ("TQM"), an indirect wholly-owned subsidiary of the Company, had on 17 September 2026 entered into a memorandum of understanding ("MOU") with Saike REPT Power Battery System Co., Ltd. ("Saike") to explore and discuss the possibility of entering into a proposed collaboration in relation to the localisation of battery packs and other identified components for electric motor vehicles ("Proposed Collaboration").

(TQM and Saike shall collectively be referred to as "Parties")

2.  INFORMATION ON THE PARTIES

TQ MANUFACTURING SDN. BHD. [REGISTRATION NO. 198501007915 (140359-W)]

TQM is a company incorporated in Malaysia and an indirect wholly-owned subsidiary of TCMH. TQM is involved in the assembly and sale of motor vehicles. TQM is the assembler and distributor of TQ WULING brand of electric motor vehicles as a result of strategic collaboration with SAIC-GM-Wuling ("SGMW") in Malaysia.

SAIKE REPT POWER BATTERY SYSTEM CO., LTD.

Saike is a company incorporated in the People's Republic of China with its registered address at No. 6, Mumian Road, Liuzhou City, People's Republic of China. Saike is the battery-pack supplier designated by SGMW for the TQ WULING electric motor vehicles.

3.  OBJECTIVE AND SCOPE OF THE PROPOSED COLLABORATION AND SALIENT TERMS OF THE MOU

  a. The MOU records the Parties' intention to conduct feasibility studies and joint evaluation of the viability of the Proposed Collaboration which include, amongst others, the following:

• localisation of battery packs or other identified components for electric vehicles in Malaysia (including the TQ Wuling vehicles) together with the opportunity of supply to other countries;
• responsible handling, recycling and second-life utilisation of used battery packs for electric vehicles.

  b. The MOU shall remain in force for a period of twelve (12) months from 17 September 2026, unless extended by mutual agreement of the Parties or terminated in accordance with the terms of the MOU.

  c.  The Parties will enter into definitive agreement based on mutually agreed terms and conditions between the Parties subject to the outcome of the feasibility study of the Proposed Collaboration.

4.  RATIONALE AND BENEFITS

The MOU provides a framework for TQM and Saike to assess the feasibility of localising battery packs and other identified vehicle components in Malaysia. The Proposed Collaboration is intended to support compliance with applicable localisation requirements, strengthen the local electric-vehicle supply chain and evaluate opportunities relating to battery lifecycle management and potential exports.

5.  RISK FACTORS

The risks associated with the MOU are expected to be minimal. The Board of Directors and management will exercise due care in considering the associated risks and benefits in the feasibility study and in negotiating the Definitive Agreements for the Proposed Collaboration.

6.  FINANCIAL EFFECTS

The MOU is not expected to have any material effects on the earnings per share, net assets and gearing of TCMH Group for the financial year ending 31 December 2026, and has no material effect on the share capital of TCMH and the shareholdings of its substantial shareholders.

7.  APPROVALS REQUIRED

The execution of the MOU is not subject to the approval of the shareholders of TCMH or any regulatory authority.

8.  INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED

None of the Directors and/or major shareholders of TCMH and/or persons connected with them has any interest, direct or indirect, in the MOU.

9.  STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors of TCMH, having considered all relevant aspects of the MOU, including its rationale, salient terms and financial effects, is of the opinion that the MOU is in the best interests of TCMH and its subsidiaries.

This announcement is dated 17 September 2026.