Hong Kong, December 14, 2001 - Toys and motors manufacturer Kin Yat Holdings Limited (SEHK: 638) reported today that, despite an extremely tough business environment in the global toys industry as well as the overall downturn in the economy, the Group was able to post a considerably improved performance for the six months ended September 30, 2001. During the first half of the year, the Group recorded a 4% increase in turnover to HK$487,835,000. Net profit attributable to shareholders also grew 32% to HK$63,655,000. The board of directors recommends an interim dividend of HK3 cents per share.

The Group's turnover from the toys operations fell marginally by 3% to HK$336,123,000 as a result of necessary price reductions in response to market developments. However, lower prices for and a more stable supply of major raw materials, such as electronic components and plastics, have helped reduce production costs. This, together with the efforts management have made in rescheduling production to off-peak periods, has helped lift the gross profit margin from 20% for the previous year to 22% for the period under review. Profit after finance costs from the toys division increased 39% to HK$46,831,000 during the period.

The motors division continued to perform well in the face of market difficulties. Turnover of this operation rose 37% to HK$113,774,000 for the first half of the year and profit after finance costs was HK$26,276,000. During the period, orders from the toys sector continued to contribute a major part of the division's revenue, but revenue from the personal-care products sector also grew rapidly. The Group has continued with its expansion plan for Phase Three of its production facilities in Shaoguan, China, to help it maintain its niche in the underserved motors market.

Concord, a Hong Kong-based optical products producer in which the Group holds an interest, obtained approval from the Chinese authorities in November 2001 to expand and relocate its facilities to China in 2002. The loss for the first half of this year, was substantially reduced compared to the loss sustained during 2000/01, thanks to market stabilization after last year's price war.

Mr Raymond Cheng Chor-kit, Chairman of Kin Yat Holdings Limited said, "Adverse market conditions are forecast to be with us for some time, and full recovery is not expected very soon. Management will continue to be prudent in proceeding further on various business fronts, but investments that are justified by demand and return potential will continue to be made."

"Overall, we continue to have a conservative optimistic outlook for the toys division for the second half of the year. The motors division, however, is expected to post steady results in the second half, which will help to stabilize the overall performance of the Group. The motors division anticipates noticeable growth in turnover for the whole year. In view of the granting of facilities relocation approval, as well as the stabilization of the market, management expects Concord to become profitable in the next financial year although higher levels of one-off losses may be incurred during the second half due to the relocation of facilities," continued Mr Cheng.

Kin Yat Holdings Limited (SEHK: 638) develops and manufactures electronic, high value-added toys. To diversify the base for its long-term growth, the Group has invested in a portfolio of motors and CDR manufacturing operations.

Six months ended September 30,
	2001	2000
	HK$ '000	HK$ '000
Turnover	487,835	471,165
Toys	336,123	346,267
Motors	113,774	83,220
Others	37,938	41,678
Net Profit Attributable to Shareholders	63,655	48,077
Profit after finance costs	77,191	56,130
Toys	46,831	33,730
Motors	26,276	17,129
Others	4,084	5,271
Interim dividend per share	HK3 cents	HK2.5 cents
Earnings per Share
- Basic	HK16.79 cents	HK12.76 cents
- Diluted	HK16.34 cents	HK12.41 cents

Issued by :
Kin Yat Holdings Limited

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