Gold Peak : Announcement of 2015/2016 nine-months 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 Nine-Month Results of GP Batteries International Limited (For the nine months ended 31 December 2015)

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 nine months ended 31 December 2015. GP Batteries Group's turnover increased by 8.5% to S$595.6 million and the net profit attributable to equity holders of GP Batteries decreased by 13.4% to S$13.2 million.

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 nine months ended 31 December 2015. GP Batteries is a 64.6%-owned subsidiary of GP Industries Limited which is in turn an 85.4%-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 nine months ended For the nine months ended 31 December 2015 31 December 2014 S$'000 HK$'000 S$'000 HK$'000 (Note) (Note)

Turnover	595,588	3,329,754	548,996	3,350,028
Cost of sales	(458,349)	(2,562,492)	(423,642)	(2,585,106)
Gross profit	137,239	767,262	125,354	764,922
Other operating income & expenses	16,356	91,441	15,944	97,292
Distribution expenses	(52,526)	(293,657)	(42,361)	(258,491)
Administrative expenses	(67,221)	(375,812)	(57,874)	(353,153)
Finance costs	(4,726)	(26,422)	(4,099)	(25,013)
Profit before share of results of associates	29,122	162,812	36,964	225,557
Share of results of associates	3,690	20,630	(1,464)	(8,933)
Profit before income tax	32,812	183,442	35,500	216,624
Income tax	(9,888)	(55,281)	(10,513)	(64,151)
Profit after income tax	22,924	128,161	24,987	152,473

Attributable to:

Equity holders of GP Batteries	13,238	74,010	15,282	93,252
Non-controlling interests	9,686	54,151	9,705	59,221
22,924	128,161	24,987	152,473

S cents HK cents S cents HK cents

Earnings per share 8.16 45.62 9.27 56.57

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 OPERATION

Turnover for the three months ended 31 December 2015 was S$193.1 million, an increase of 1.9% over the corresponding period last year. Turnover for the nine months ended 31 December 2015 was S$595.6 million, an increase of 8.5% over the corresponding period last year. As the Singapore dollar has weakened significantly against the US dollar, the changes in turnover decreased by 7.1% and 0.7% for the three months and nine months ended 31 December 2015 respectively over the corresponding periods last year in US dollar terms.

Sales of primary batteries increased by 3.1% and 8.1% for the three months and nine months ended 31 December 2015 respectively over the corresponding periods last year. For rechargeable batteries, sales for the three months ended 31 December 2015 decreased by 0.9% while sales for the nine months ended 31 December 2015 increased by 11.5% as compared to the corresponding periods last year.

For the three months ended 31 December 2015, sales in Asia increased by 7.7% while sales in the Americas decreased by 10.4% as compared to the corresponding periods last year. For the nine months ended 31 December 2015, sales in Asia and the Americas increased by 11.9% and 4.1% respectively over the corresponding period last year.

Profit before income tax for the three months and nine months ended 31 December 2015 were S$9.1 million and S$32.8 million respectively as compared to S$11.5 million and S$35.5 million over the respective corresponding periods last year. Gross profit margins for the three months and nine months ended 31 December 2015 were 24.0% and 23.0% respectively as compared to 22.5% and 22.8% in the respective corresponding periods last year mainly due to the decrease in material prices.

Distribution expenses for the three months and nine months ended 31 December 2015 were S$15.3 million and S$52.5 million respectively as compared to S$14.4 million and S$42.4 million over the respective corresponding periods last year. The increase was mainly due to increase in turnover as well as additional S$4.0 million doubtful debt provisions made in last quarter as a prudent measure against the weakening economy in China.

Administrative expenses for the three months and nine months ended 31 December 2015 were S$23.9 million and S$67.2 million respectively as compared to S$19.7 million and S$57.9 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 nine months ended 31 December 2015 were S$1.7 million and S$4.7 million respectively as compared to S$1.3 million and S$4.1 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 income for the three months ended 31 December 2015 was S$2.2 million as compared to S$5.4 million last year as there was a foreign exchange gain of S$3.7 million recorded last year as compared to a foreign exchange gain of S$1.1 million recorded this year. Net other operating income for the nine months ended 31 December 2015 was S$16.4 million as compared to S$15.9 million over the same period last year mainly due to (a) a gain of S$4.0 million arising from the disposal of a factory building in China 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 gain on foreign exchange of S$9.9 million this year as compared to a foreign exchange gain of S$3.7 million last year.

Share of profits of associates for the three months and nine months ended 31 December 2015 were S$1.3 million and S$3.7 million respectively as compared to losses of S$1.2 million and S$1.5 million over the respective corresponding periods last year mainly due to the improved performance of STL Group in Taiwan and AZ Limited, GP Batteries Group's 40%-owned associate in Russia.

OUTLOOK

The business outlook is challenging. Market slowdown will continue to negatively impact the sales especially in emerging markets.

The primary battery market worldwide will continue to be slow growing and GP Batteries Group will place more emphasis on faster growing rechargeable batteries markets.

The oversupply situation for the more mature product categories will become more apparent and very keen competition will continue.

GP Batteries Group will continue to strengthen our brand building activities and focus on distribution development in target regions. GP Batteries Group's balance sheet remains healthy.

BOARD OF DIRECTORS

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 a Non-Executive Director.

By Order of the Board WONG Man Kit Company Secretary

Hong Kong, 2 February 2016

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