JSI.L Regulatory News (JSI)

JIASEN INTERNATIONAL HOLDINGS LIMITED

嘉森國際控股有限公司

TRADING UPDATE FOR THE NINE MONTHS TO 30 SEPTEMBER 2014

Jiasen International Holdings Limited ("Jiasen", "the Company"), together with its subsidiaries, is pleased to report its trading for the nine months up to and including 30 September 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.

Financial Highlights

· During the period we secured 12 new contracts and nine of which are worth more than RMB 20 million each.

· Strong order book, which has grown from RMB 137 million at half year (30 June 2014) to RMB 254.2 million as at 30 September 2014. The order book is mainly made up of orders from property developers and RMB 125.3 million is expected to be completed by the end of 2014.

· Revenue for the first nine months increased by 10.0% to RMB 652.8 million (2013: RMB 593.8 million).

· Gross margin decreased by 3.9% to 33.1% (2013: 37.0%). This was partly due to an increase in the average cost of materials over the period and the Group's strategy to focus on winning larger and more premium property projects, which require higher quality furniture, fixtures and fittings. In order to secure 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. The Company expects its gross profit margin to be in the range of 30-35% for FY2014.

· As a result of the impact on gross profit, our full year net profit figure is expected to be between RMB 160-170 million (FY 2013: 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 first payment of RMB 103 million will be paid before February 2015. We will need to gain the necessary government approval which we expect to receive in the next six months.

· We have continued to diversify our revenue streams towards higher margin non-door products.

· In the period our distributors closed down four old outlets and set-up 13 new ones, which are currently being renovated, upon completion our total number of outlets will be 63.

Commenting on the results, Weigang Chen, Chairman said:

"The signing of the purchase of land for the new production facility is a significant milestone for the company which will facilitate further growth. We are also pleased to report that policies have been introduced to stimulate the demand in the property market including a relaxation of the previous restrictions that had been in place when purchasing property. These include a reduction in the deposit required, enabling residents to buy three or more properties and mortgage rates being lowered.

"On top of the improvement in policies which will make it easier for people to get on to the property ladder, the demand for semi-furnished flats continues to increase as buyers are attracted to the high quality fixtures and fittings that come with these new build properties. Overall we are pleased with the performance to date, with a strong order book supplying premium properties, we look to the future with confidence."

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. According to Euromonitor International Limited, Jiasen PRC, ranked first in terms of manufacturer sales value for the year ended 31 December 2012 within the high-end solid wooden doors segment in China, with an estimated market share of 6.1%.

· 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.

· In FY13, the Directors estimate the Group sold in excess of 300,000 solid wooden doors, fixture items and furniture pieces and generated Group revenue of RMB 782.8 million (circa £77.2million) and net profit after tax of RMB 177.8 million (circa £17.5 million).