JSI.L Regulatory News (JSI)

JIASEN INTERNATIONAL HOLDINGS LIMITED

嘉森國際控股有限公司

trading update for the Three months ended 31 march 2015

Jiasen International Holdings Limited ("Jiasen", "the Company"), together with its subsidiaries ("the Group"), is pleased to report a trading update for the three months period ended 31 March 2015 (unaudited). Jiasen is an international property fit-out business specialising in designing, manufacturing, kitting and installation of multiple wooden products for residential properties.

Financial Highlights

· Revenue for the period decreased by 1% to RMB 190 million (Q1 2014: RMB 191 million). Historically, the first quarter of any calendar year is typically the quietest and accounts for the lowest revenue compared to the other financial quarters.

· In line with our expectations, the gross profit margin decreased to 28.4% (Q1 2014: 42.7% and FY2014: 30.1%). The reduction in gross profit margin is partly due to the increase in the average cost of materials and our competitive pricing strategy implemented mid-2014 to secure larger and more luxurious property projects, to ensure a predictable and visible revenue stream moving forward. Furthermore, the Group had short term contracts on export shipments which also accounted for lower margins. For FY2015 the Group expects gross profit margins to be between 27-30%.

· Our strategy has delivered a strong order book of RMB 177 million as at 30 April 2015 derived mainly from property developers. These projects are for high volume, luxury homes and they are expected to be completed by end of 2015.

· Net profit for period ended 31 March 2015 decreased to RMB 34 million (Q1 2014: RMB 52.5 million) due mainly to the impact of lower gross profit margins.

· Cash and cash equivalent as at 31 March 2015 amounted to RMB 315 million and the Group's interest receivables was RMB 0.3 million. Cash and cash equivalents for the Group's audited FY2014 results was RMB 334 million as audited by the Group's auditor Moore Stephens LLP.

· Jiasen has a committed dividend policy of 28.5% of net profit. The Company will pay a final dividend of 2.35 pence (GBP) per share to be paid on 25 June 2015 to shareholders on the register at the close of business on 5 June 2015. The shares will trade ex-dividend on 4 June 2015.

Operational Highlights

· Seven property projects were completed in first quarter of 2015. The Group secured five new contracts with repeat customers in Q1 2015 and the value of these contracts ranges between RMB 12 million to RMB 109 million.

· The Group is seeking strategic alliances with foreign and local brands and has entered in to early discussions.

· The land for our new factory 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.

· As at end of May 2015, we have 16 distributors which operate 55 outlets across China (Q1 2014: 52 outlets). Currently 12 new outlets are under renovation and a further three outlets will be relocated to better locations. Upon completion our total number of outlets will be 70.

Indicative exchange rates as at 2 June 2015: £1: RMB 9.52

Source : www.boc.cn

Commenting on the results, Weigang Chen, Chairman said:

"The business is trading in line with expectations, supported by a strong order book, and demand for semi-furnished apartments which is a relatively new concept in China continues unabated, driven by home owners desiring higher quality fixtures and fittings and convenience. We remain confident of the future and our major shareholders remain supportive of the business."

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Notes to Editors

· Jiasen is an international property fit-out business specialising in designing, manufacturing, kitting and installation of multiple wooden products for residential properties. The Company 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 1,500 employees.

· Jiasen'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. The Company's products are sold in three main segments: residential and property development projects, wholesale distribution and export.