Jiasen International Holdings Ltd Trading Statement (6553M)

TIDMJSI

RNS Number : 6553M

Jiasen International Holdings Ltd

25 January 2016

JIASEN INTERNATIONAL HOLDINGS LIMITED

TRADING UPDATE FOR THE NINE MONTHS TO 30 SEPTEMBER 2015

Jiasen International Holdings Limited ("Jiasen", "the Company"), together with its subsidiaries, is pleased to report its trading for the nine months up to and including 30 September 2015 (unaudited). Jiasen is an international property fit-out business specialising in designing, manufacturing and installing a range of wooden products for residential and commercial properties.

Key points

-- The slowdown in China's economic growth has had an adverse effect on consumer confidence and demand across many sectors, including property.

-- As the Company's multiple wooden product ranges are made to order in the property segment, sales have slowed, reflecting a more difficult trading environment and reduced demand for high-end Refined Housing Decoration (RHD) or "semi-furnished homes".

-- Revenue for the first nine months is below the Company's expectations and decreased by 16.8% to RMB 543.4 million (2014: RMB 652.8 million), as a result of slower economic and property growth in China.

-- Wholesale distribution revenue grew by 25% as a result of new outlets opened during the period. The Company now has 16 distributors which operate 54 outlets across China. More outlets are expected to be completed in 2016.

-- Although exports during the nine months ended September 2015 decreased relative to 2014, the percentage of total sales for the segment for FY 2015 is expected to be approximately 10%, similar to the previous year.

-- Gross profit margin has been maintained within our expected range of 27% to 30% at 27.4% (2014: 33.1%).

-- As a result of the slowdown in housing sales, the Company has agreed with a property developer, with which the Company had entered into a significant contract, to amend the repayment terms of the outstanding part of the contract. The contract, valued at RMB 170.4 million, was for two projects of which RMB 66.9 million payment has been received to date. Of the RMB 104.6 million outstanding, the Company has agreed with the debtor that it will pay a further RMB 15 million in February 2016 with the balance paid as properties are sold. The Company expects the full amount outstanding to be recovered, however, for prudent accounting, has allowed for a bad debt provision of RMB 52.3 million or 50 per cent. of the outstanding debt.

-- Cash and cash equivalents as at 30 September 2015 amounted to RMB 260.6 million (30 September 2014: RMB 375.2 million). Cash and cash equivalents for the Group's audited FY2014 results was RMB 334 million.

Commenting on the results, Weigang Chen, Chairman said:

"Since the half year end, trading has been more challenging driven by wider macroeconomic conditions and sentiment which has impacted revenues and overall profitability. We expect this trading environment to remain, and will continue to take mitigating steps to ensure the business remains insulated during this challenging environment, and well positioned to grow revenues again when favourable conditions return."

For further information, please visit www.jsih.net or contact:

 
 Jiasen International 
  Holdings Limited           Gareth Wong              +86 18016603993 
--------------------------  -----------------------  ---------------- 
 Cairn Financial Advisers 
  LLP                        Jo Turner                +44 (0)20 7148 
  (Nominated Adviser)         Liam Murray              7900 
--------------------------  -----------------------  ---------------- 
 Beaufort Securities         Jon Levinson 
  Limited                     Saif Janjua             +44 (0)20 7382 
  (Broker)                    Elliot Hance             8300 
--------------------------  -----------------------  ---------------- 
                             Shan Shan Willenbrock    +44 (0)20 7930 
 Cardew Group                 David Roach              0777 
--------------------------  -----------------------  ----------------

Notes to Editors

-- Jiasen is an international property fit-out business specialising in designing, manufacturing, kitting and installation of multiple wooden products for residential properties. The Company was established in 2001 and is based in Quanzhou City, Fujian province, located in south-eastern China. Its products are sold and marketed under the 'Fuyou' brand and produced in its 83,000 sqm factory in Nan'an City, Fujian province.

-- Jiasen's main products include doors, wall panels and assorted fixtures, such as fitted wardrobes, cupboards and skirting boards, and furniture which are sold principally to property development projects, through branded 'Fuyou' retail stores and to export markets. The Company's products are sold in three main segments: residential and property development projects, wholesale distribution and export.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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