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

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(Incorporated in Hong Kong under the Companies Ordinance)

(Stock Code: 40) Announcement of 2016/2017 Interim 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 six months ended 30 September 2016. GP Industries Group's turnover decreased by 5.5% to S$503.8 million and the net profit attributable to equity holders of GP Industries decreased by 37.0% to S$11.9 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 Industries Limited ("GP Industries" and together with its subsidiaries, "GP Industries Group") for the six months ended 30 September 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 six months ended For the six months ended 30 September 2016 30 September 2015 S$'000 HK$'000 S$'000 HK$'000

(Restated) (Restated)

(Note) (Note) Turnover 503,849 2,879,900 532,946 3,012,690

Cost of sales (379,303) (2,168,020) (399,917) (2,260,691)

Gross profit 124,546 711,880 133,029 751,999 Other operating income 3,818 21,823 3,456 19,536 Distribution costs (50,273) (287,350) (55,006) (310,943) Administrative expenses (62,300) (356,095) (63,529) (359,123) Exchange gain 5,257 30,048 9,653 54,567 Other operating expenses (1,190) (6,802) (2,229) (12,600) Profit from operations 19,858 113,504 25,374 143,436 Finance costs (6,088) (34,798) (5,634) (31,849) Exceptional items 3,038 17,365 5,360 30,300 Share of results of associates 14,276 81,599 12,986 73,409 Profit before taxation 31,084 177,670 38,086 215,296 Taxation (11,723) (67,006) (8,262) (46,704) Profit after taxation 19,361 110,664 29,824 168,592 Attributable to: Equity holders of GP Industries 11,937 68,230 18,960 107,179

Non-controlling interests	7,424	42,434	10,864	61,413
19,361	110,664	29,824	168,592
S cents	HK cents	S cents	HK cents
Earnings per share	2.46	14.06	3.90	22.05
Dividend per share Interim	1.25	7.14	1.60	9.04

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 six-month period ended on 30 September 2016 ("H1FY2017") was S$503.8 million, a decrease of 5.5% when compared to the revenue reported for the same period in 2015 ("H1FY2016").

During H1FY2017, GP Industries Group recorded exceptional gains of S$3.0 million from the disposal of assets and write-back of excess restructuring costs, compared to gains of S$5.4 million for H1FY2016 from disposal of assets and write-back of unclaimed warranty cost provision.

For H1FY2017, profit after taxation attributable to equity holders of GP Industries decreased by 37.0% to S$11.9 million, compared to S$19.0 million reported for H1FY2016.

Based on the weighted average of 484,489,691 shares in issue (H1FY2016: 486,246,198 shares), basic earnings per share for H1FY2017 was 2.46 Singapore cents, compared to 3.90 Singapore cents for H1FY2016.

BUSINESS REVIEW

Electronics and Acoustics Business - Revenue from the electronics and acoustics business in H1FY2017 remained stable when compared to that in H1FY2016. Sales of electronics products increased by 3.5% while sales of acoustics products decreased by 2.0%. Sales of acoustics products to the US increased by 2.0% while sales to Europe and Asia declined by 1.1% and 3.9% respectively. The associates contributed less profit before taxation due mainly to soft market demand. Profit contribution before exceptional items and taxation from the electronics and acoustics business in H1FY2017 decreased by 7.2% when compared to the level reported in H1FY2016.

Automotive Wire Harness Business - Overall sales of the automotive wire harness business grew by 8.4% during H1FY2017 when compared to H1FY2016. Sales to the US increased by 2.9% and sales to China increased by 24.9%. Profit contribution before exceptional items and taxation from the automotive wire harness business for H1FY2017 increased by 1.8% over the level reported in H1FY2016.

Battery Business - The revenue of GP Batteries International Limited ("GP Batteries") for H1FY2017 was S$371.4 million, 7.7% lower than H1FY2016. Global demands for primary batteries and rechargeable Nickel Metal Hydride batteries were very slow growing and price competition was very keen. Sales of primary and rechargeable batteries decreased by 5.4% and 17.5% respectively. The decrease in sales of rechargeable batteries was due mainly to the discontinuation of a contract with a major customer of the Taiwan plant. In geographical terms, sales in the Americas and Asia decreased by 38.0% and 8.5% respectively while sales in Europe increased by 31.6%. The decrease in sales in the Americas and increase in sales in Europe were largely due to the relocation of the procurement office of a major customer from the US to Europe.

During H1FY2017, GP Batteries reported foreign exchange gains of S$3.9 million, compared to the S$8.8 million reported in H1FY2016.

Profit contribution from GP Batteries' associates increased from S$2.4 million for H1FY2016 to S$2.9 million for H1FY2017. The performance of AZ Limited, the associate in Russia, has recovered significantly whilst the performance of the STL Group has decreased.

For H1FY2017, GP Batteries reported a profit after taxation attributable to its equity holders of S$3.8 million, compared to S$12.6 million for H1FY2016.

Other Industrial Investments - This business segment includes GP Industries Group's investments in Meiloon Industrial Co., Ltd. ("Meiloon") and Linkz Industries Limited ("Linkz"). Both Meiloon and Linkz contributed more profit before taxation during H1FY2017 when compared to H1FY2016. Profit contribution from this business segment increased by 44.1%.

PROSPECTS

Consumer demand in Europe is expected to remain weak and this challenging market environment is further aggravated by the weak Euro and Pound Sterling. Markets in Asia are also slowing down although some of GP Industries Group's businesses in the US are expected to remain stable. The market for primary batteries and rechargeable Nickel Metal Hydride batteries is expected to continue with slow growth, and price competition is expected to remain very keen.

Development of GP Batteries' additional new factories in Malaysia and Vietnam is on schedule and is expected to bring in additional revenue during the coming six to twelve months. At the same time, GP Batteries is downsizing some of the smaller plants, such as the ones in Taiwan and Shanghai, consolidating those production facilities with the bigger plants in Ningbo, Guangdong and Malaysia. Some of the more labour intensive manufacturing may be moved to Vietnam. GP Batteries is incurring closure cost during the current financial year but overall cost competitiveness is expected to improve when the consolidation is completed.

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

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 November 2016

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