Gold Peak Industries : Announcement of 2016/2017 first quarter results of GP Industries Limited

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(Incorporated in Hong Kong under the Companies Ordinance)

(Stock Code: 40) Announcement of 2016/2017 First Quarter Results of GP Industries 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 Industries Limited for the quarter ended 30 June 2016. GP Industries Group's turnover decreased by 3.3% to S$242 million and the net profit attributable to equity holders of GP Industries decreased by 26.3% to S$5.2 million for the quarter ended 30 June 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 Industries Limited ("GP Industries" and together with its subsidiaries, "GP Industries Group") for the quarter ended 30 June 2016. GP Industries is an 85.5%-owned subsidiary of the Company and is listed on the Singapore Exchange Securities Trading Limited.

GP INDUSTRIES LIMITED UNAUDITED CONSOLIDATED RESULTS For the first quarter ended For the first quarter ended 30 June 2016 30 June 2015 S$'000 HK$'000 S$'000 HK$'000 (Note) (Note)

Turnover	242,097	1,385,787	250,404	1,440,249
Cost of sales	(183,817)	(1,052,187)	(187,160)	(1,076,488)
Gross profit	58,280	333,600	63,244	363,761
Other operating income	1,560	8,930	1,695	9,749
Distribution costs	(23,366)	(133,749)	(23,921)	(137,586)
Administrative expenses	(29,890)	(171,093)	(29,519)	(169,784)
Exchange gain (loss)	2,721	15,575	(1,095)	(6,298)
Other operating expenses	(1,048)	(5,999)	(1,475)	(8,484)
Profit from operations	8,257	47,264	8,929	51,358
Finance costs	(2,682)	(15,352)	(2,261)	(13,005)
Exceptional items	286	1,637	1,239	7,126
Share of results of associates	7,166	41,019	7,156	41,159
Profit before taxation	13,027	74,568	15,063	86,638
Taxation	(4,807)	(27,516)	(3,757)	(21,609)
Profit after taxation	8,220	47,052	11,306	65,029
Attributable to:
Equity holders of GP Industries	5,155	29,508	6,993	40,222
Non-controlling interests	3,065	17,544	4,313	24,807
8,220	47,052	11,306	65,029
Earnings per share	S cents 1.06	HK cents 6.07	S cents 1.44	HK cents 8.28

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

GP Industries Group's revenue for the first financial quarter ended 30 June 2016 ("Q1FY2017") was S$242.1 million, a decrease of 3.3% when compared to the revenue reported for the same period in 2015 ("Q1FY2016").

During Q1FY2017, GP Industries Group recorded an exceptional gain of S$0.3 million from the disposal of certain intangible assets by the electronics and acoustics business, compared to a S$1.2-million gain for Q1FY2016 reported by the automotive wire harness business.

For Q1FY2017, profit after taxation attributable to equity holders of GP Industries decreased by 26.3% to S$5.2 million, compared to S$7.0 million reported for Q1FY2016.

Based on the weighted average of 484,495,368 shares in issue (Q1FY2016: 486,821,658 shares), basic earnings per share of GP Industries Group for Q1FY2017 was 1.06 Singapore cents, compared to 1.44 Singapore cents per share for Q1FY2016.

BUSINESS REVIEW

Electronics and Acoustics Business - Revenue from the electronics and acoustics business in Q1FY2017 increased by 3.7% over Q1FY2016. Profit contribution from subsidiaries in this business also increased as a result of the revenue increase. Sales of electronics products increased by 9.3% while sales of acoustics products decreased marginally by 1.0%. Sales of acoustics products to the US increased by 10.6% while sales to Europe and Asia declined by 2.6% and 11.1% respectively. The associates contributed less profit before taxation due mainly to decreases in revenue. Profit contribution before exceptional items and taxation from the electronics and acoustics business in Q1FY2017 increased by 22.7% over the level reported in Q1FY2016.

Automotive Wire Harness Business - Overall sales of the automotive wire harness business grew by 18.2% during Q1FY2017 when compared to Q1FY2016, with sales to the US and China increased by 14.5% and 29.3% respectively. Profit contribution before exceptional items and taxation from the automotive wire harness business for Q1FY2017 increased by 20.5% over the level reported in Q1FY2016.

Battery Business - The revenue of GP Batteries International Limited ("GP Batteries") for Q1FY2017 was S$177.4 million, 6.3% lower than Q1FY2016. The overall market for primary batteries and nickel metal hydride batteries was slow-growing and competition was very keen. Sales of primary and rechargeable batteries decreased by 3.7% and 14.3% respectively. The decrease in sales of rechargeable batteries was due mainly to the discontinuation of a contract with a customer of the Taiwan plant. In geographical terms, sales in the Americas and Asia decreased by 43.0% and 3.8% respectively while sales in Europe increased by 29.3%. The decrease in sales in the Americas and increase in sales in Europe were, to a large extent, due to the relocation of the procurement office of a customer from the US to Europe.

GP Batteries' gross profit margin decreased from 23.2% for Q1FY2016 to 21.4% for Q1FY2017, due mainly to loss of income of the Taiwan plant which no longer manufactures proprietary Lithium-ion batteries for a customer. GP Batteries has chosen to combine the two rechargeable Lithium battery plants in Taiwan and Shenzhen into one bigger plant. The Shenzhen plant will be developed to become the centre of excellence for Lithium rechargeable batteries.

Improved performance of GP Batteries' associates increased share of profit of associates from S$0.8 million for Q1FY2016 to S$1.7 million for Q1FY2017.

For Q1FY2017, GP Batteries reported a profit after taxation attributable to its equity holders of S$1.2 million, compared to S$2.8 million for Q1FY2016.

Other Industrial Investments - This business segment includes GP Industries Group's investments in Meiloon Industrial Co., Ltd. ("Meiloon") and Linkz Industries Limited ("Linkz"). Meiloon's profit before taxation during Q1FY2017 increased while the pre-tax profit contributed by Linkz decreased. This business segment reported a 27.0% decrease in profit contribution.

PROSPECTS

Consumer demand in Europe is expected to remain weak and the impact of Brexit has yet to be seen. Markets in Asia are also slowing down although some of GP Industries Group's businesses in the US are expected to remain stable.

GP Batteries is focusing on developing new distribution channels and selected application segments to grow its business. Construction of the new plant in Vietnam is on schedule and will provide additional capacity of cylindrical carbon zinc products. Demand for the alkaline batteries manufactured in the Malaysian plant is expected to increase significantly. GP Batteries is proceeding to establish a new plant in Malaysia to meet the increase in demand.

GP Industries Group will continue to enhance the competitiveness of its businesses by investing in technology, product development, further automating GP Industries Group's factories and building GP Industries Group's brands.

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, 11 August 2016

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