KEIN HING INTERNATIONAL BERHAD 
(Company No. 616056-T)

CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE THREE AND NINE MONTHS ENDED 31 JANUARY 2008
(The figures have not been audited)

			3 Months Ended		9 Months Ended	
			31-Jan-08		31-Jan-07		31-Jan-08		31-Jan-07	
		Note	RM'000		RM'000		RM'000		RM'000	

Revenue		       35,911 		        30,178 		      108,329 		       92,073 	
										
Operating profit		         1,285 		          1,078 		          6,002 		         6,264 	
										
Interest expense		           (738)		           (676)		        (2,067)		        (2,023)	
Interest income		              20 		               51 		             164 		            118 	
Share of associates' net results		              34 		             139 		             363 		            246 	
			 		 		 		 	
Profit before tax		            601 		             592 		          4,462 		         4,605 	
										
Tax expense	B5	           (180)		             239 		           (210)		           (338)	
			 		 		 		 	
Net profit for the period		            421 		             831 		          4,252 		         4,267 	

Attributable to:									
										
  Equity holders of the Company		            443 		             840 		          4,569 		         4,278 	
  Minority interests		             (22)		               (9)		           (317)		             (11)	
										
			            421 		             831 		          4,252 		         4,267 	
										
Earnings per share									
 attributable to equity holders 									
 of the Company (sen):									
   Basic 	B13	           0.45 		            0.85 		            4.62 		           4.32 	

The Condensed Consolidated Income Statements should be read in conjunction with the audited financial statements for the financial year ended 30 April 2007 and the accompanying explanatory notes attached to the interim financial statements.	

KEIN HING INTERNATIONAL BERHAD 
(Company No. 616056-T)

CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 31 JANUARY 2008
(The figures have not been audited)

					Restated	
			As at		As at	
			31-Jan-08		30-Apr-07	
	Note		RM'000		RM'000	
ASSETS						
Non-current assets						
 Property, plant and equipment 	 A2 		                83,044 		              85,234 	
 Prepaid lease payments 	 A2 		                  1,956 		                1,974 	
 Intangible assets 			                  3,694 		                3,927 	
 Investment in associates 			                  2,890 		                3,126 	
 Other investments 	 B7 		                     732 		                   578 	
			                92,316 		              94,839 	
Current assets						
 Inventories 			                10,768 		              10,216 	
 Receivables, deposits and prepayments 			                25,507 		              23,388 	
 Tax recoverable 			                         -   		                        6 	
 Cash and cash equivalents 			                  7,738 		                6,645 	
			                44,013 		              40,255 	
						
TOTAL ASSETS			              136,329 		            135,094 	
						
EQUITY AND LIABILITIES						
Equity attributable to equity holders of the Company						
 Share capital 			                49,500 		              49,500 	
 Reserves 			                17,934 		              15,202 	
			                67,434 		              64,702 	
Minority interests			                  2,401 		                3,043 	
Total equity			                69,835 		              67,745 	
						
Non-current liabilities						
 Loans and borrowings 	B9		                17,499 		              20,741 	
 Amount due to Directors 			                  3,880 		                4,342 	
 Deferred tax liabilities 			                  6,500 		                7,000 	
			                27,879 		              32,083 	
Current liabilities						
 Payables and accruals 			                18,382 		              17,166 	
 Loans and borrowings 	B9		                20,011 		              18,100 	
 Taxation 			                      222 		                       -   	
			                38,615 		              35,266 	
			 		 	
Total liabilities			                66,494 		              67,349 	
						
TOTAL EQUITY AND LIABILITIES			              136,329 		            135,094 	
						
Net assets per share attributable to 						
  equity holders of the Company (RM)			                     0.68 		                   0.65 	

The audited Balance Sheet as at 30 April 2004 was prepared at company level. No consolidated financial statements were prepared as the company has yet to commence operations. 

The Condensed Consolidated Balance Sheet as at 31 July 2004 has been prepared on a proforma basis on the assumption that the acquisition of subsidiaries and associated companies, an integral part of the restructuring exercise in conjunction with its listing on the Second Board of Bursa Securities, were completed on 31 July 2004. 

The audited Balance Sheet as at 30 April 2004 was prepared at company level. No consolidated financial statements were prepared as the company has yet to commence operations. 

The Condensed Consolidated Balance Sheet as at 31 July 2004 has been prepared on a proforma basis on the assumption that the acquisition of subsidiaries and associated companies, an integral part of the restructuring exercise in conjunction with its listing on the Second Board of Bursa Securities, were completed on 31 July 2004. 

The Condensed Consolidated Balance Sheet should be read in conjunction with the audited financial statements for the financial year ended 30 April 2007 and the accompanying explanatory notes attached to the interim financial statements.
	
KEIN HING INTERNATIONAL BERHAD 
(Company No. 616056-T)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED 31 JANUARY 2008
(The figures have not been audited)

		------- Attributable to equity holders of the Company ------			
			 -- Non-distributable -- 	 Distributable 				
		 Share 	 Share 	 Translation 	 Retained 		Minority	Total	
		 Capital 	 Premium 	 reserve 	 Profits 	 Total 	Interests	Equity	
		 RM'000 	 RM'000 	 RM'000 	 RM'000 	 RM'000 	 RM'000 	 RM'000 	
									
Balance as at 1 May 2007		    49,500 	          2,669 	               (316)	              12,849 	      64,702 	        3,043 	    67,745 	
									
Exchange differences on translation  	 	 	 	 	 	 	 	
  of the financial statements of 		 						 	
  foreign subsidiaries		             -   	                 -   	               (352)	                       -   	          (352)	          (325)	        (677)	
Net loss recognised		 	 	 	 	 	 	 	
  directly in equity		             -   	                 -   	               (352)	                       -   	          (352)	          (325)	        (677)	
Net profit / (loss) for the period		             -   	                 -   	                    -   	                4,569 	         4,569 	          (317)	      4,252 	
Total recognised income									
  and expense for the period		             -   	                 -   	               (352)	                4,569 	         4,217 	          (642)	      3,575 	
Dividend paid		             -   	                 -   	                    -   	               (1,485)	       (1,485)	               -   	     (1,485)	
									
Balance as at 31 January 2008		    49,500 	          2,669 	               (668)	              15,933 	      67,434 	        2,401 	    69,835 	
									
Balance as at 1 May 2006		    49,500 	          2,669 	               (249)	                7,956 	      59,876 	        2,556 	    62,432 	
									
Exchange differences on translation  	 	 	 	 	 	 	 	
  of the financial statements of 		 						 	
  foreign subsidiaries		             -   	                 -   	               (245)	                       -   	          (245)	                6 	        (239)	
Net loss recognised		 	 	 	 	 	 	 	
  directly in equity		             -   	                 -   	               (245)	                       -   	          (245)	                6 	        (239)	
Net profit / (loss) for the period		             -   	                 -   	                    -   	                4,278 	         4,278 	            (11)	      4,267 	
Total recognised income									
  and expense for the period		             -   	                 -   	               (245)	                4,278 	         4,033 	              (5)	      4,028 	
Issuance of shares									
  to minority shareholders		             -   	                 -   	                    -   	                       -   	                -   	        1,113 	      1,113 	
Dividend paid		             -   	                 -   	                    -   	                  (990)	          (990)	               -   	        (990)	
									
Balance as at 31 January 2007		    49,500 	          2,669 	               (494)	              11,244 	      62,919 	        3,664 	    66,583 	

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited financial statements for the financial year ended 30 April 2007 and the accompanying explanatory notes attached to the interim financial statements. 

KEIN HING INTERNATIONAL BERHAD 
(Company No. 616056-T)

CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE NINE MONTHS ENDED 31 JANUARY 2008
(The figures have not been audited)
			9 Months Ended	
			31-Jan-08		31-Jan-07	
			RM'000		RM'000	
Cash flows from operating activities				
	Profit before tax	            4,462 		           4,605 	
	Adjustments for:				
		Non-cash items	            7,919 		           7,057 	
		Non-operating items	            1,904 		           1,905 	
	Operating profit before working capital changes	          14,285 		         13,567 	
						
	Changes in working capital:				
		Inventories	              (591)		           3,227 	
		Trade and other receivables	          (2,197)		          (1,742)	
		Trade and other payables	            1,148 		          (2,698)	
	Cash generated from operations	          12,645 		         12,354 	
		Tax paid	              (482)		             (615)	
	Net cash generated from operating activities	          12,163 		         11,739 	
						
Cash flows from investing activities				
	Proceeds from disposal of shares in associates	               370 		                  -   	
	Acquisition of other investments	              (154)		             (310)	
	Proceeds from issuance of shares to minority shareholders	                   -   		           1,113 	
	Proceeds from disposal of  property, plant and equipment	               234 		           2,010 	
	Purchase of property, plant and equipment	          (4,447)		          (4,992)	
	Interest received	               156 		               118 	
	Net cash used in investing activities	          (3,841)		          (2,061)	
						
Cash flows from financing activities				
	Proceeds from term loans	            3,545 		           6,190 	
	Repayment of advances to a Director	              (462)		             (234)	
	Repayment of term loans	          (2,928)		          (3,269)	
	Drawdown/(Repayment) of other borrowings	            1,003 		          (3,950)	
	Repayment of hire purchase liabilities	          (3,614)		          (4,024)	
	Dividend paid	          (1,485)		             (990)	
	Interest paid	          (2,067)		          (2,023)	
	Net cash used in financing activities	          (6,008)		          (8,300)	
						
Exchange differences on translation of the				
	financial statements of foreign operations	              (413) 		                  -   	
						
Net increase in cash and cash equivalents	            1,901 		           1,378 	
Cash and cash equivalents at beginning of financial period	            1,167 		           2,893 	
Foreign exchange differences on opening balance	              (107)		                  -   	
Cash and cash equivalents at end of financial period	            2,961 		           4,271 	
						
Cash and cash equivalents at end of period comprise:				
	Cash & bank balances	            6,560 		           7,297 	
	Deposits placed with licensed banks (excluding deposits pledged)	            1,071 		           1,042 	
	Bank overdrafts	          (4,670)		          (4,068)	
			            2,961 		           4,271 	

The Condensed Consolidated Cash Flow Statement should be read in conjunction with the audited financial statements for the financial year ended 30 April 2007 and the accompanying explanatory notes attached to the interim financial statements.	
KEIN HING INTERNATIONAL BERHAD 
(Company No. 616056-T)
                                             
PART A: EXPLANATORY NOTES PURSUANT TO FRS 134

A1.	Basis of preparation 

The interim financial statements are unaudited and have been prepared in accordance with the requirements of Financial Reporting Standard (“FRS”) 134: Interim Financial Reporting and Paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad. 

The interim financial statements should be read in conjunction with the audited financial statements of the Group for the financial year ended 30 April 2007. These explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the last financial year ended 30 April 2007.

A2.	Changes in accounting policies

The accounting policies and method of computation adopted for interim financial statements are consistent with those of the audited financial statements for the financial year ended 30 April 2007 except for the adoption of the following new/revised FRSs effective for financial periods beginning on or after 1 October 2006:

FRS 117	Leases
FRS 124	Related Party Disclosures

The Group has not adopted the FRS 139: Financial Instruments – Recognition and Measurement as its effective date has been deferred.

The adoption of the abovementioned FRSs does not have significant financial impact on the Group, other than the change discussed below:

FRS 117: Leases

Prior to 1 May 2007, the Group had classified leasehold land as property within its property, plant and equipment and was stated at cost less accumulated depreciation and impairment losses, if any. The adoption of the revised FRS 117 has resulted in a retrospective change in the accounting policy relating to the classification of leasehold land. The up-front payment made for the leasehold land represents prepaid lease payments and are amortised on a straight-line basis over the lease term. The reclassification of leasehold land as prepaid lease payments has been accounted for retrospectively and as disclosed below, certain comparative amounts as at 30 April 2007 have been restated:-

As At 30 April 2007	As previously reported
RM’000	Reclassification 

RM’000	As Restated 

RM’000	

Property, plant and equipment 	
87,208	
(1,974)	
85,234	

Prepaid lease payments	
0	
1,974	
1,974	

A3.	Qualification of Annual Financial Statements

There were no audit qualifications on the annual financial statements for the financial year ended 30 April 2007.

A4.	Seasonal and cyclical factors

The Group’s business operation results were not materially affected by any major seasonal or cyclical factors.
	
A5.	Unusual nature and amounts of items affecting assets, liabilities, equity, net income or cash flows

There were no unusual nature and amounts of items affecting assets, liabilities, equity, net income or cash flows during the current quarter and financial year-to-date.

A6.	Material changes in estimates

There were no changes in estimates that have had material effect in the current quarter and financial year-to-date. 

A7.	Issuances and repayment of debt and equity securities	

There were no issuance, repayment of debt and equity securities, share buy-backs, share cancellations, shares held as treasury shares or resale of treasury shares during the current quarter and financial year-to-date.
	                                                                                                                                           
A8.	       Dividend Paid	

The first and final tax exempt dividend of 3% totaling RM1,485,000 in respect of the financial year ended 30 April 2007 was paid by the Company to the entitled shareholders of the Company on 21 November 2007.

A9.	Segment information

	Segmental information is presented in respect of the Group’s business segments:-

Results for 9 months ended 31 January 2008			
					Investment			
			Manufacturing	Trading	Holding	Adjustment	Consolidated	
			RM'000	RM'000	RM'000	RM'000	RM'000	
Revenue from external customers 	106,161	2,168	-	                  -   	108,329      	
Inter-segment revenue		1,329                         	168            	-	(1,497)            	                -   	
Total revenue		107,490	2,336	-	(1,497)	108,329	
							 	
Segment results		6,643	(77)	(275)	(289)	6,002	
								
Interest expense						(2,067)	
Interest income						164	
Share of associates’ net results					363	
Profit before tax					3,861	
Tax expense						(30)	
Net profit for the period					3,831	
A10.	Valuation of property, plant and equipment

The property, plant and equipment except for freehold land are stated at cost less accumulated depreciation and impairment losses, if any. There has been no revaluation of property, plant and equipment during the current quarter and financial year-to-date.

A11.	Material events subsequent to the end of the interim period

There were no material events subsequent to the end of the current quarter ended 31 January 2008.

A12.	Changes in the composition of the Group

There were no material changes in the composition of the Group for the current quarter and financial year-to-date except for the following: 

a)	On 12 September 2007, the Company had entered into a Sale and Purchase Agreement to dispose of 490,000 ordinary shares of RM1.00 each in Hirotako Kein Hing Sdn Bhd (“HKH”), representing 49% of the issued and fully paid-up share capital of HKH, at a total consideration of RM369,931.15 only. Upon the disposal, HKH ceased to be an associated company of the Company.

b)	On 8 November 2007, the Company had acquired additional equity interest in Kein Hing Polychrome (Vietnam) Co. Ltd. (“KHPV”) by way of cash amounting to USD25,000, thus increasing KHPV’s contributed legal capital from USD224,974 to USD249,974. Accordingly, the Company’s equity interest in KHPV has increased from 60% to 70%.

A13.	Changes in contingent liabilities

There were no changes in contingent liabilities or contingent assets of a material nature since the last audited financial statements for the financial year ended 30 April 2007.
                                             
      A14.     Capital commitments

There were no capital commitments as at the latest practicable date prior to issue of this report.

PART B: 	EXPLANATORY NOTES PURSUANT TO APPENDIX 9B OF THE LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD

B1.	Review of performance 
	
The Group registered revenue of RM35.9 million and RM108.3 million for the current third (3rd) quarter and financial year-to-date respectively compared with RM30.2 million and RM92.1 million reported in the preceding year corresponding quarter and period, representing increases of RM5.7 million or 18.8% and RM16.2 million or 17.6% respectively.

The increase in revenue was mainly attributed to stronger customers’ demand. The improvement in sales recorded by a subsidiary in Vietnam has also contributed to the increase in revenue.

Against the above backdrop, the Group reported profit before tax of RM0.6 million for the current 3rd quarter, consistent with that reported in the corresponding quarter last year. The profit before tax for the current year-to-date was RM4.5 million compared to RM4.6 million in the preceding year-to-date, representing a slight decrease of RM0.1 million or –3%. This was mainly due to marketing and operating expenses incurred for the gas cooker under the brand name of “Zenne”, which was officially launched in August 2007.

B2.	Variation of results against preceding quarter 

The Group registered profit before tax of RM0.6 million for the current 3rd quarter compared with profit before tax of RM2.4 million reported in the immediate preceding quarter, representing a decrease of RM1.8 million or –75%.

The decrease in profit before tax was mainly due to stronger sales achieved in the 2nd quarter totaling RM40.1 million compared with RM35.9 million reported in the 3rd quarter.

B3.	Prospects 

Barring any unforeseen circumstances, the Board expects the Group to achieve a satisfactory performance for the next quarter.

B4.	Variance of actual and forecast profit 

The Group has not provided any profit forecast or profit guarantee for the current financial year ending 30 April 2008.

B5.	Tax expense 

		3 Months		9 Months	
		Ended		Ended	
		31.1.2008		31.1.2008	
Current tax expense:					
 - Malaysian income tax	150		680	
 - Foreign tax	56 		56	
	206		736	
Overprovision of Malaysian income tax in prior year	(26)		(26)	
Deferred tax expense	-		(500)	
Total tax expense	  180   		         210	
				
The effective tax rate of the Group for the period was lower than the statutory income tax rate of 26% mainly due to the utilisation of reinvestment allowances of a wholly-owned subsidiary of the Company.  

B6.	Unquoted investments and/or properties 

The Group has not disposed of any unquoted investments and/or properties in the current quarter and financial year-to-date.

B7.	Quoted and marketable investments 

The details of quoted investments as at 31 January 2008 are as follows:

	As at
31.1.2008
RM’000	

At cost	
458	
At book value	458	
At market value	462	

B8.	Status of corporate proposal announced 

There were no corporate proposals announced but not completed as at the date of this report.

B9.	Group borrowings 

The Group borrowings as at 31 January 2008 are as follows:

	Short Term
(Secured)
RM’000		Long Term
(Secured)
RM’000	
Bank overdraft and bills payable	9,878		-	
Term loans	5,293		14,328	
Hire purchase	4,840		3,171	
Total borrowings	20,011		17,499	

Included in term loans are borrowings denominated in foreign currency amounting to USD4.7 million.

B10.	Off balance sheet financial instrument 

There are no financial instruments with off balance sheet risk as at the date of this report.

B11.	Changes in material litigation 

Neither the Company nor any of its subsidiaries is engaged in any litigation or arbitration, either as plaintiff or defendant, which has a material effect on the financial position of the Company or any of its subsidiaries and the Board is not aware of any proceedings pending or threatened, or of any fact likely to give rise to any proceedings, which might materially and adversely affect the position or business of the Company or any of its subsidiaries. 

B12.	Dividend payable

No interim ordinary dividend has been declared for the financial period ended 31 January 2008 (31 January 2007: Nil).

B13.	Basic earnings per share 

	The basic earnings per share are calculated by dividing net profit for the period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares in issue during the current financial period as follows:-

	3 Months
Ended
31.1.2008
RM’000		9 Months
Ended
31.1.2008
RM’000	
Earnings
  Net profit attributable to equity holders of the Company	
443		
4,569	

Weighted average number of ordinary shares in issue	
99,000		
99,000	

Basic earnings per share (sen)	
0.45		
4.62	
  
B14.	Authorisation for issue

	The Interim Financial Statements were authorised for issue by the Board of Directors in accordance with a resolution of the Directors on 24 March 2008.

	By Order of the Board

	
	Yap Toon Choy
	Group Managing Director
	24 March 2008