Gold Peak : Announcement of 2015/2016 final results of GP Batteries International Limited

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（Incorporated in Hong Kong under the Companies Ordinance）

（Stock Code: 40）

Announcement of 2015/2016 Final Results of GP Batteries International Limited

Pursuant to Paragraph 13.09(2) of the Listing Rules, the Board of Directors of Gold Peak Industries (Holdings) Limited is pleased to announce the unaudited consolidated results of GP Batteries International Limited for the year ended 31 March 2016. GP Batteries Group's turnover increased by 6.4% to S$765 million and the net profit attributable to equity holders of GP Batteries decreased by 81.5% to S$2.4 million for the year ended 31 March 2016.

Pursuant to Paragraph 13.09(2) of the Listing Rules, the Board of Directors of Gold Peak Industries (Holdings) Limited (the "Company") is pleased to announce the unaudited consolidated results of GP Batteries International Limited ("GP Batteries" and together with its subsidiaries, "GP Batteries Group") for the year ended 31 March 2016. GP Batteries is a 64.7%- owned subsidiary of GP Industries Limited which is in turn an 85.5%-owned subsidiary of the Company. Both GP Batteries and GP Industries Limited are companies listed on the Singapore Exchange Securities Trading Limited.

GP BATTERIES INTERNATIONAL LIMITED UNAUDITED CONSOLIDATED RESULTS For the year ended For the year ended 31 March 2016 31 March 2015 S$'000 HK$'000 S$'000 HK$'000

Turnover	765,254	(Note) 4,271,265	719,335	(Note) 4,325,649
Cost of sales	(587,601)	(3,279,695)	(552,963)	(3,325,188)
Gross profit	177,653	991,570	166,372	1,000,461
Other operating income and expenses	3,038	16,957	14,721	88,523
Distribution expenses	(61,603)	(343,838)	(57,961)	(348,543)
Administrative expenses	(88,974)	(496,608)	(76,832)	(462,022)
Finance costs	(6,353)	(35,459)	(5,438)	(32,701)
Profit before share of results of	23,761	132,622	40,862	245,718
associates Share of results of associates	4,884	27,260	741	4,456
Profit before taxation	28,645	159,882	41,603	250,174
Taxation	(12,956)	(72,314)	(16,369)	(98,433)
Profit after taxation	15,689	87,568	25,234	151,741
Attributable to: Equity holders of GP Batteries	2,397	13,379	12,981	78,060
Non-controlling interests	13,292	74,189	12,253	73,681
15,689	87,568	25,234	151,741

S cents HK cents S cents HK cents

Earnings per share 1.49 8.32 7.88 47.39

S cents	HK cents	S cents	HK cents
Final dividend per share	1.00	5.58	2.50	15.03

Note:-

The Hong Kong dollar equivalents as shown above for illustrative purposes are converted at the average exchange rates for the respective periods.

REVIEW OF RESULTS

Turnover for the three months ended 31 March 2016 was S$169.7 million, a decrease of 0.4% over the corresponding period last year. Turnover for the twelve months ended 31 March 2016 was S$765.3 million, an increase of 6.4% over the corresponding period last year. As the Singapore dollar has weakened against the US dollar during the year, the changes in turnover in US dollar terms over the corresponding periods last year would have become decreases of 3.2% and 1.3% respectively.

Sales of primary batteries decreased by 0.2% for the three months ended 31 March 2016 while sales for the twelve months ended 31 March 2016 increased by 6.1% as compared to the corresponding periods last year. For rechargeable batteries, sales for the three months ended 31 March 2016 decreased by 1.9% while sales for the twelve months ended 31 March 2016 increased by 8.2% as compared to the corresponding periods last year.

For the three months ended 31 March 2016, sales in Europe increased by 11.9% while sales in Asia decreased by 5.9% as compared to the corresponding period last year. For the twelve months ended 31 March 2016, sales in Asia and Europe increased by 7.5% and 5.3% respectively over the corresponding period last year.

For the three months ended 31 March 2016, loss before income tax was S$4.2 million as compared to a profit before income tax of S$6.1 million over the corresponding period last year. Profit before income tax for the twelve months ended 31 March 2016 was S$28.6 million as compared to S$41.6 million over the corresponding period last year. Gross profit margins for the three months and twelve months ended 31 March 2016 were 23.8% and 23.2% respectively as compared to 24.1% and 23.1% in the respective corresponding periods last year.

Distribution expenses for the three months ended 31 March 2016 were S$9.1 million as compared to S$15.6 million over the corresponding period last year mainly due to a reversal of S$3.8 million of doubtful debts provision as a result of improved receivable/collection cycles and ageing profiles from the PRC distribution network. Distribution expenses for the twelve months ended 31 March 2016 were S$61.6 million as compared to S$58.0 million over the corresponding period last year due to increase in turnover.

Administrative expenses for the three months and twelve months ended 31 March 2016 were S$21.8 million and S$89.0 million respectively as compared to S$19.0 million and S$76.8 million over the respective corresponding periods last year. This was mainly due to increase in staff cost, office rental and IT expenses.

Finance costs for the three months and twelve months ended 31 March 2016 were S$1.6 million and S$6.4 million respectively as compared to S$1.3 million and S$5.4 million over the respective corresponding periods last year mainly due to additional interest expenses incurred after the draw down of the S$85 million three-year term loan facility in July 2015.

Net other operating expenses for the three months ended 31 March 2016 were S$13.4 million as compared to S$1.2 million last year mainly due to (a) a foreign exchange loss of S$6.4 million as compared to a foreign exchange gain of S$2.9 million last year; (b) a S$4.5 million of fixed assets impairment in respect of GP Batteries Group's rechargeable Lithium batteries production facilities due to under-utilized production capacity as compared to a S$2.5 million of fixed asset impairment last year; and (c) a S$2.9 million of goodwill impairment that arose as a result of the carrying values of the investment in subsidiaries exceeding the recoverable amounts as determined by the expected future cash flow generated. Net operating income for the twelve months ended 31 March 2016 was S$3.0 million as compared to S$14.7 million over the same period last year mainly due to, besides the aforementioned impairment, (a) a gain of S$4.0 million arising from the disposal of a factory building in the PRC this year as compared to a gain of S$9.2 million arising from the disposal of a factory building in Singapore last year; and (b) a foreign exchange gain of S$3.5 million this year as compared to a foreign exchange gain of S$6.6 million last year.

Share of profits of associates for the three months and twelve months ended 31 March 2016 were S$1.2 million and S$4.9 million respectively as compared to S$2.2 million and S$0.7 million over the respective corresponding periods last year mainly due to the improved performance of STL Group and AZ Limited, GP Batteries Group's 40%-owned associate in Russia.

PROSPECTS‌

Global demands for primary batteries and Nickel Metal Hydride batteries are expected to be slow-growing. Price competition is expected to be very keen. Growth has to come mainly from increasing market share and developing new applications.

The new plant in Vietnam is under construction. In addition, GP Batteries Group is planning to increase the production capacity in the Malaysian plant.

GP Batteries Group is aiming at combining smaller plants in the PRC and Taiwan into bigger plants in order to improve efficiency and to accommodate further automation. GP Batteries Group will continue to invest in brands and distribution in selected markets.

By Order of the Board WONG Man Kit Company Secretary‌

Hong Kong, 26 May 2016

www.goldpeak.com

As at the date of this announcement, the Board consists of Messrs. Victor LO Chung Wing (Chairman & Chief Executive), LEUNG Pak Chuen, Richard KU Yuk Hing, Andrew CHUANG Siu Leung and Brian LI Yiu Cheung as Executive Directors, Messrs. LUI Ming Wah, Frank CHAN Chi Chung and CHAN Kei Biu as Independent Non-Executive Directors and Ms. Karen NG Ka Fai as Non-Executive Director.