Financial Highlights

	Six months ended 30 June		change
	2009	2008
	HK$'million	HK$'million
Revenue	9,001.5	12,377.8	-27%
Profit before tax*	1,261.8	2,077.3	-39%
Net profit attributable to shareholders*	983.3	1,569.8	-37%
Basic earnings per share*	HK116.5 cents	HK186.3 cents	-37%
Interim dividend per share	HK30.0 cents	HK40.0 cents	-25%
Dividend payout ratio	26%	21%
Net asset value per share	HK$24.1	HK$23.8	+1%
Net gearing	22%	24%

* Including:
30 June 2009: discount on acquisition of HK$7.2 million
30 June 2008: loss on disposal of convertible bond and interest in an associate of HK$188.5 million

Hong Kong, August 28, 2009 - Kingboard Chemical Holdings Limited (the “Company’) (HKEx: 148) and its subsidiaries (the “Group”) today announced that for the six months ended 30 June 2009, the Group’s revenue decreased 27% to HK$9 billion and net profit declined 37% to HK$983 million. As the Group generated robust and steady operating cash inflow, the directors of the Company increased dividend payout ratio to 26% from 21% last year and declared an interim dividend of HK30 cents per share.

Mr. Paul Cheung Kwok Wing, Chairman of the Company said: “Under the strong leadership of our dedicated and seasoned management team, the Group achieved encouraging results which outperformed our peers in the industry. Laminate division advanced its No 1. position in the world with market share of 14% in 2008. Our position as the largest PCB manufacturer in China was further reinforced by the recent acquisition of Express Electronics (Dongguan) Company Ltd in March 2009 – which increased our monthly PCB production capacity by 5%. Chemical division continued to generate positive earnings. Our remarkable operational performance is a clear testament on the Group’s strong capability to ride out the trough of the financial crisis and deliver profitability with diversified revenue streams.”

Revenue (including inter-segment sales) for the laminate division fell 28% to HK$4,104.5 million. Earnings before interest and tax (“EBIT”) was down 26% to HK$872.5 million against first half of 2008. Laminate order bookings in Q3 2009 showed an uptrend against Q2 2009. Laminate order bookings in Q3 2009 showed an uptrend against Q2 2009. The Group’s persistent effort to upgrade capability on thin and high performance laminate brings in encouraging results. In addition to supplying the laminate requirements for dedicated HDI PCB plants within the Group, the Group expects to see significant sales growth from external customers for these new products.

Contributions from two dedicated HDI plants and newly acquired Express PCB shops together with substantial raw material costs reduction mitigated the adverse impact from average selling price decline in 1H 2009. PCB division’s revenue decreased 25% to HK$3.065.2 million with EBIT reduced to HK$217.3 million. The division also experienced upward momentum in order bookings in the third quarter of 2009. Hence, most of the Group’s PCB manufacturing sites have been operating at full capacities. Both dedicated HDI plants of the Group have made good progress and will continue to ramp up production in the second half of 2009.

With lower average selling prices for chemical products against last year, chemical revenue was down 29% to HK$2,703.6 million. EBIT declined 62% to HK$239.0 million while EBIT margin reduced to 8.8%. Share of associate profits decreased to HK$11 million mainly due to reduced contribution from CNOOC Kingboard Chemical Limited as a result of lower sales volume and average selling price for methanol during the first half of 2009.

In the first two months of Q3 2009, both demand and selling prices of the Group’s key chemical products have shown an upturn. Capacity utilization of chemical plants has improved against that in the first half of 2009. In addition, most of the major chemical plants of the Group including Hebei coke/methanol plant and the Huizhou phenol/acetone plants are currently operating at full capacities. Construction of the new acetic acid plant adjacent to the existing coke / methanol plant in Hebei province is on track for to commence production in Q3 2009. Utilizing coke granules and methanol as feedstock, this acetic acid project will further enhance the Group’s production capabilities of downstream chemical products and expand the chemical products range to capture the growing demand in China.

Mr. Cheung concluded: “Global economy has shown signs of continuous improvement in Q3 2009 – reinforcing the general belief that bottom of the cycle is behind us. For the Group, business outlook for long term remains positive. Leveraging on the Group’s robust financial strength and our commitments to pursue competitive advantage in core businesses, the Group is well poised to benefit from the tremendous growth opportunities in the fastest growing emerging market – China.”

About Kingboard Chemical
Kingboard Chemical Holdings Limited (HKEx: 148) is a global leader in laminate and printed circuit board as well as a major chemical supplier in China. The Group’s core manufacturing capability comprises an integrated network of more than 60 plants in China. The Kingboard Group of companies also includes Kingboard Laminates Holdings Limited (HKEx: 1888), Kingboard Copper Foil Holdings Limited (listed on the Singapore Exchange) and Elec & Eltek International Company Limited (listed on the Singapore Exchange).