JSI.L Regulatory News (JSI)

10 March 2015

JIASEN INTERNATIONAL HOLDINGS LIMITED

嘉森國際控股有限公司

Year end trading update

Jiasen International Holdings Limited ("Jiasen", "the Company"), together with its subsidiaries, is pleased to report a trading update for the year ended 31 December 2014 (unaudited). Jiasen is a designer, manufacturer and wholesaler of wooden home furnishing, high-end solid wooden doors and other wooden design solutions to both the domestic Chinese and overseas markets. The Company expects to announce its audited results for the year ended 31 December 2014 in April 2015.

Financial Highlights

· During 2014 we secured 18 new contracts, 12 of which are worth more than RMB 20 million each.

· Strong order book of RMB 307 million as at 31 December. The order book is mainly made up of orders from property developers and is expected to be completed by mid-2015.

· Revenue for the period increased by 10% to RMB 863 million (FY2013: RMB 783 million) resulting from our strategy to diversify revenue streams to non-door products and securing larger property projects.

· Gross margin decreased by 5.4% to 31.4% (2013: 36.8%) which is in line with the Company's previously stated guidance. As indicated in a trading statement on 21 November 2014, the reduction in gross margins is partly due to the increase in the average cost of materials as we secure larger and more luxurious property projects, which require higher quality furniture, fixtures and fittings. In order to win these lucrative high volume contracts we have had to increase our marketing activities, offer more competitive pricing and place strong emphasis on design, quality and after sales service.

· Net profit for the period is in line with the Company's stated guidance at RMB 160 million (FY2013: 177.8 million).

Operational Highlights

· On 18 November 2014 we signed a contract to purchase 47 hectares of land which will be used to build our new factory on and will reduce our reliance on outsourcing to third party manufacturers. Currently our existing factory runs at full capacity, as such we outsource c. 32% of our production. The land is being bought for RMB 216.7 million and the down payment of RMB 69 million was paid in February 2015. The completion of the sale of the land is subject to government approval which we expect to receive in the next few months.

· We have 16 distributors which operate 52 outlets across China. 17 outlets are currently being renovated and will be completed in 2015. Upon completion our total number of outlets will be 69.

Indicative exchange rates as at 9 March 2015: £1: RMB 9.24

Source:www.oanda.com

Commenting on the results, Weigang Chen, Chairman said:

"Trading in our first full financial year as a quoted company has been positive. Our growth in revenue and order book has been driven by our success in winning larger and more luxurious property projects where we are able to supply higher quality fixtures and fittings and diversify our revenue streams to non-door products. The business has had a strong start to the year and we are confident of the future."

For further information, please visit www.jsih.net or contact:

Notes to Editors

· Jiasen (PRC) was established in 2001 and is based in Quanzhou City, Fujian province, located in south-eastern China. Its products are sold and marketed under the 'Fuyou' brand and produced in its 83,000 sqm factory in Nan'an City, Fujian province by its workforce of more than 1,400 employees.

· The Group's main products include doors, wall panels and assorted fixtures, such as fitted wardrobes, cupboards and skirting boards, and furniture which are sold principally to property development projects, through branded 'Fuyou' retail stores and to export markets to retailers such as B&Q in the UK. The Group's products are sold in three main segments: residential and property development projects, wholesale and export.