Hong Kong, August 15, 2002 - Power tools manufacturer Wang Sing International Holdings Group Limited (SEHK: 2389) today announces the Group's first unaudited interim results since its flotation on the mainboard of the Stock Exchange of Hong Kong on April 26, 2002. In the first six months of 2002, the Group's turnover advanced 17% compared to the corresponding period of last year to HK$193,654,000, mainly attributable to the aggressive sales strategy targeting new customers especially exporters in the PRC. Profit for the period also grew 22% to HK$18,866,000. The Group declared an interim dividend of HK2 cents.

The Group adopts a flexible and cost-effective supply strategy comprising both in-house manufacturing and supplementary outsourcing supported by a network of over 50 suppliers in China. In the past six months, the Group was able to maintain a steady gross profit margin of 16.5% (2001: 16.4%), despite aggressive promotional volume sales, by raising the level of in-house manufacturing to 64.1% from 19.4% of the previous corresponding period.

As at June 30, 2002, the Group maintained bank balances and cash of HK$63,864,000. Capital expenditures for the period were about HK$24 million.

Ms Catherine Chen Wai-yuk, Chairman of Wang Sing International, said: "The first phase of our new 2-milion-sq-ft production plant in Jiangsu Province will become fully operational in the second half of this year. The resulting enhanced manufacturing capabilities will empower us to pursue active customer and market developments."

The Group focuses in the development of DIY household power tools and commands a dominant position in the European and US markets. Riding on a strong euro and robust growth in demand for DIY power tools, Wang Sing management views the prospects of the European market favorably.

"While we will continue to leverage our low-cost production advantage to further our lead in the western markets, we will also actively forge business opportunities at home. We are in discussions with a renowned European DIY chain store operator towards the establishment of DIY home improvement centers in China." explained Ms Chen.

As a result of active business development, revenues from the PRC contributed 25.7% of Group turnover in the first half (2001: 3.8%). Revenues from Europe remained the Group's core income stream, accounting for 68.6% of turnover (2001: 76.8%).

The Group will also dedicate management's attention to the longer-term mission of developing a new original-brandname-manufacturing (OBM) business segment. Preparation work for house brand building has already been carried out.

Ms Chen concluded: "With the dynamics of our business and market developments, and plans to enhance operational efficiency with the newly installed ERP system, we have every reason to be fully confident of our performance in the coming periods."

About Wang Sing International
Wang Sing International Holdings Group Limited (SEHK: 2389) is a leading PRC-based manufacturer and distributor of power tools. Operating a 2-million-sq-ft manufacturing base in Jiangsu Province, the PRC, supported by a supplementary outsourcing network of over 50 suppliers in the country, the Group enjoys substantial production flexibility and cost advantages. Founded in 1995, the Group now commands a dominant position in the DIY household power tools market of Europe and other parts of the world.

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Wang Sing International Holdings Group Limited

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