Hong Kong, December 21, 2000 - Kin Yat Holdings Limited (SEHK:638) today announces its unaudited consolidated results for the six months ended September 30, 2000. The Group's turnover from toys operation recorded a 24% increase to HK$359,711,000 amidst a difficult and increasingly competitive operating environment for the toys industry participants worldwide. The profit after finance costs derived from the toys operation declined 28% to HK$38,206,000 during the period on the back of a global surge in the oil price and consequent increase in the costs of raw materials including plastic and fuel. With contribution from the motors operations, the Group's total net profits remained stable at HK$48,077,000. The board of directors recommends an interim dividend of HK2.5cents per share.

Due to the production bottleneck resulting from the global shortage of raw materials and customers' requirements, the manufacturing lead time is shortened and peak production season is condensed to two to three months, mainly between August and October. "To maintain sound relationship with our long-standing customers, we are committed to delivering the orders on time, even at the short term expense of higher manufacturing and transportation costs," said Mr. Raymond Cheng Chor-kit, Chairman of Kin Yat Holdings.

Continued success in business diversification was witnessed in the first half of the year. The acquisition of Standard Motor had brought to the Group an attributed profit after finance costs of HK$17,129,000. During the period, including the turnover of HK$8,607,000 of goods sold to the Group, the motors operation registered a 4.5 times growth in net profit to HK$18,824,000, on a turnover of HK$91,827,000, which also represents a 2.1 times increase. It is the view of the management that the motors operation will continue to record solid performance in the second half of the year. The management expects this operation to grow into another core business line of Kin Yat.

In December 2000, Kin Yat obtained ISO 9001 which is a further proof of the Group's capability in its research and development function and also its commitment to quality throughout the entire production process.

Kin Yat Holdings Limited develops and manufactures high value-added and high-end toy products. To consolidate its business platform, the Group has expanded the production of PU products, embarked on a new retailing operation in China, and invested in a portfolio of high-growth, high-return operations including a motors and a CDR manufacturing plant.

Issued by :
Kin Yat Holdings Limited

Through :
Troika Communications Limited
Jenny Lee / Kelly Lau
tel: 2511 8388 / fax: 2511 8238
email: enquiry-at-t6pr.com (use "@" to replace "-at-")
URL : http://www.t6pr.com