Registered Continuous Growth in Turnover

 and Profits

Hong Kong, December 6, 2000 - Laminate manufacturer Kingboard Chemical Holdings Limited (HKSE : 148) today announces its unaudited interim results for the six months ended September 30, 2000. During the period, the Group continued to achieve remarkable results on the back of the growing electronics industry. Turnover and profit attributable to shareholders were both up 78% to HK$1,205,355,000 and to HK$205,842,000 respectively. Pre-tax profit margins expanded to 21.9% from 19.6% in the corresponding period last year. Earnings per share grew 70% to HK43.6 cents and the Board recommended an interim dividend of HK4 cents per share.

During the period, the Group has recorded considerable growth in turnover, mainly attributable to the increasing sales of glass epoxy laminates used for the production of double-sided and multi-layer printed circuit boards. Glass epoxy laminates commanded higher margins than traditional paper laminates and posted the highest sales growth at around 150% from the corresponding period last year. A new product line of glass epoxy laminates will be introduced to the market next year. The Group expects the sales of glass epoxy laminates to continue their strong growth and overtake paper laminates in the near term.

Turnover and profit growth were also driven by the continuous improvements in productivity. Production facilities have been expanded in line with the Group`s development plan. New production facilities at Shuitian and Kunshan have passed through the trial run phase and are running at full capacity.

"The construction of Phase Two copper foil and glass fabrics plants has been completed. With in-house supply of these two key materials for laminates production, the Group has successfully reduced the pressure arising from their tight global supply," noted Mr Cheung Kwok-wing, Chairman of Kingboard Chemical.

On the back of continuous R&D activities and world-class production facilities, the Group is rapidly catching up with counterparts in North America and Europe on the technology roadmap. The Group recently established Kingboard Polymer Research Centre at Zhejiang University to accommodate research collaboration programs.

With world-class quality, the Group`s products have been well received in major overseas markets, including South Korea, Europe and North America. Overseas orders ratioed to total sales increased to 9% from 3% in the corresponding period last year. These orders are mostly settled by letter of credit in US dollars, thereby enhancing the Group`s debtor profile.

"We are working hard to enhance the Group`s capacity and resolve bottlenecks in the production process," said Mr Cheung as he concluded. "With China`s imminent entry into WTO, which will provide huge room for growth, we expect the Group`s solid performance to continue in the current financial year."

Kingboard Chemical is a leading manufacturer of laminates, operating 10 plants in China, with in-house production of copper foil, glass fabrics and hydrogen. It is the largest Hongkong-based laminate manufacturer, in Hong Kong and China, as well as one of the world`s top five laminate manufacturers by volume. The Group was recently named one of the world`s best 300 small companies by Forbes Global.

Financial Highlights

Issued by :
Kingboard Chemical Holdings Limited