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

CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE THREE AND TWELVE MONTHS ENDED 30 APRIL 2008

			3 Months Ended		12 Months Ended		
			30-Apr-08		30-Apr-07		30-Apr-08		30-Apr-07		
			(Unaudited)		(Unaudited)		(Unaudited)		(Audited)		
		Note	RM'000		RM'000		RM'000		RM'000		

Revenue			       34,184 		      30,197 		    142,514 		     122,270 		
											
Operating profit		         1,179 		           439 		        7,016 		        6,701 		
											
Interest expense		          (563)		          (697)		       (2,465)		       (2,719)		
Interest income		             31 		             48 		           195 		           166 		
Share of associates' net results		           236 		           240 		           599 		           486 		
			 		 		 		 		
Profit before tax		           883 		             30 		        5,345 		        4,634 		
											
Tax expense	B5	           676 		           473 		           466 		           135 		
			 		 		 		 		
Net profit for the period		         1,559 		           503 		        5,811 		        4,769 		

Attributable to:										
											
  Equity holders of the Company		         1,366 		           766 		        5,935 		        5,043 		
  Minority interests		            193		          (263)		          (124)		          (274)		
											
			         1,559 		           503 		        5,811 		        4,769 		
											
Earnings per share										
 attributable to equity holders 										
 of the Company (sen):										
   Basic / Diluted	B13	          1.38 		          0.77 		          5.99 		          5.09 		

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 30 APRIL 2008
(The figures have not been audited)
					Restated	
			As at		As at	
			30-Apr-08		30-Apr-07	
	Note		RM'000		RM'000	
ASSETS						
Non-current assets						
 Property, plant and equipment 	 A2 		                83,704 		              85,234 	
 Prepaid lease payments 	 A2 		                  5,518 		                5,901 	
 Investment in associates 			                  3,298 		                3,126 	
 Other investments 	 B7 		                     802 		                   578 	
			                93,322 		              94,839 	
Current assets						
 Inventories 			                12,284 		              10,216 	
 Receivables, deposits and prepayments 			                25,744 		              23,388 	
 Tax recoverable 			                         -   		                       6 	
 Cash and cash equivalents 			                  6,217 		                6,645 	
			                44,245 		              40,255 	
						
TOTAL ASSETS			              137,567 		            135,094 	
						
EQUITY AND LIABILITIES						
Equity attributable to equity holders of the Company						
 Share capital 			                49,500 		              49,500 	
 Reserves 			                19,406 		              15,202 	
			                68,906 		              64,702 	
Minority interests			                  2,765 		                3,043 	
Total equity			                71,671 		              67,745 	
						
Non-current liabilities						
 Loans and borrowings 	B9		                16,574 		              20,741 	
 Amount due to Directors 			                  3,671 		                4,342 	
 Deferred tax liabilities 			                  5,678 		                7,000 	
			                25,923 		              32,083 	
Current liabilities						
 Payables and accruals 			                19,243 		              17,166 	
 Loans and borrowings 	B9		                20,682 		              18,100 	
 Taxation 			                       48 		                       -   	
			                39,973 		              35,266 	
			 		 	
Total liabilities			                65,896 		              67,349 	
						
TOTAL EQUITY AND LIABILITIES			              137,567 		            135,094 	
						
Net assets per share attributable to 						
  equity holders of the Company (RM)			                    0.70 		                  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 TWELVE MONTHS ENDED 30 APRIL 2008

		 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 	
Unaudited									
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		             -   	                 -   	               (246)	                       -   	          (246)	          (188)	        (434)	
Net loss recognised		 	 	 	 	 	 	 	
  directly in equity		             -   	                 -   	               (246)	                       -   	          (246)	          (188)	        (434)	
Net profit / (loss) for the year		             -   	                 -   	                    -   	                5,935 	         5,935 	          (124)	      5,811 	
Total recognised income									
  and expense for the year		             -   	                 -   	               (246)	                5,935 	         5,689 	          (312)	      5,377 	
Issuance of shares									
  to minority shareholders		             -   	                 -   	                    -   	                       -   	                -   	              34 	            34 	
Dividend paid		             -   	                 -   	                    -   	               (1,485)	       (1,485)	               -   	     (1,485)	
									
Balance as at 30 April 2008 		    49,500 	          2,669 	               (562)	              17,299 	      68,906 	        2,765 	    71,671 	

Audited									
Balance as at 1 May 2006		    49,500 	          2,669 	               (139)	                8,795 	      60,825 	        2,447 	    63,272 	
									
Exchange differences on translation  	 	 	 	 	 	 	 	
  of the financial statements of 		 						 	
  foreign subsidiaries		             -   	                 -   	               (177)	                       -   	          (177)	          (157)	        (334)	
Net loss recognised		 	 	 	 	 	 	 	
  directly in equity		             -   	                 -   	               (177)	                       -   	          (177)	          (157)	        (334)	
Net profit / (loss) for the year		             -   	                 -   	                    -   	                5,044 	         5,044 	          (274)	      4,770 	
Total recognised income									
  and expense for the year		             -   	                 -   	               (177)	                5,044 	         4,867 	          (431)	      4,436 	
Issuance of shares									
  to minority shareholders		             -   	                 -   	                    -   	                       -   	                -   	        1,027 	      1,027 	
Dividend paid		             -   	                 -   	                    -   	                  (990)	          (990)	               -   	        (990)	
									
Balance as at 30 April 2007		    49,500 	          2,669 	               (316)	              12,849 	      64,702 	        3,043 	    67,745 	

 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 TWELVE MONTHS ENDED 30 APRIL 2008
			12 Months Ended	
			30-Apr-08		30-Apr-07	
			(Unaudited)		(Audited)	
			RM'000		RM'000	
Cash flows from operating activities				
	Profit before tax	            5,345 		           4,634 	
	Adjustments for:				
		Non-cash items	          10,118 		         10,011 	
		Non-operating items	            2,270 		           2,553 	
	Operating profit before working capital changes	          17,733 		         17,198 	
	Changes in working capital:				
		Inventories	          (2,129)		           2,862 	
		Trade and other receivables	          (2,994)		          (5,319)	
		Trade and other payables	            2,071 		               136 	
	Cash generated from operations	          14,681 		         14,877 	
		Tax paid	              (802)		             (683)	
	Net cash generated from operating activities	          13,879 		         14,194 	
						
Cash flows from investing activities				
	Proceeds from disposal of shares in associates	               370 		                  -   	
	Acquisition of other investments	              (224)		             (328)	
	Proceeds from issuance of shares to minority shareholders	                  34 		           1,027 	
	Proceeds from disposal of  property, plant and equipment	               911 		           1,974 	
	Purchase of property, plant and equipment	          (6,163)		          (9,041)	
	Purchase of intangible assets	                   -   		             (387)	
	Interest received	               183 		               166 	
	Net cash used in investing activities	          (4,889)		          (6,589)	
						
Cash flows from financing activities				
	Proceeds from term loans	            4,193 		           6,390 	
	Repayment of advances to a Director	              (671)		             (336)	
	Repayment of term loans	          (5,182)		          (3,241)	
	Drawdown/(Repayment) of other borrowings	               222 		          (3,551)	
	Repayment of hire purchase liabilities	          (5,062)		          (5,266)	
	Dividend paid	          (1,485)		             (990)	
	Interest paid	          (2,465)		          (2,719)	
	Net cash used in financing activities	        (10,450)		          (9,713)	
Exchange differences on translation of the				
	financial statements of foreign operations	                 (9)		             (333)	
Net increase in cash and cash equivalents	          (1,469)		          (2,441)	
Cash and cash equivalents at beginning of financial year	            1,168 		           2,893 	
Foreign exchange differences on opening balance	              (146)		               716 	
Cash and cash equivalents at end of financial year	              (447)		           1,168 	
						
Cash and cash equivalents at end of financial year comprise:				
	Cash & bank balances	            3,965 		           5,496 	
	Deposits placed with licensed banks (excluding deposits pledged)	            2,140 		           1,050 	
	Bank overdrafts	          (6,552)		          (5,378)	
			              (447)		           1,168 	

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	
Intangible assets *	3,927	(3,927)	0	
Prepaid lease payments
	0	5,901	5,901	
* Intangible assets represent Land Use Rights has also been reclassified into Prepaid Lease Payments to conform with the presentation requirements of FRS 117.	

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 1.5 sen per share totalling 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 12 months ended 30 April 2008			
					Investment			
			Manufacturing	Trading	Holding	Adjustment	Consolidated	
			RM'000	RM'000	RM'000	RM'000	RM'000	
Revenue from external customers 	139,389	3,125	-	                  -   	142,514	
Inter-segment revenue		2,301	202	-	(2,503)	                -   	
Total revenue		141,690	3,327	-	(2,503)	142,514	
							 	
Segment results		7,637	(62)	(442)	(117)	7,016	
								
Interest expense						(2,465)	
Interest income						195	
Share of associates’ net results					599	
Profit before tax					5,345	
Tax expense						466	
Net profit for the year					5,811	
A10.	Valuation of property, plant and equipment

The property, plant and equipment 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 30 April 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 and 11 March 2008, the Company had acquired additional equity interest in Kein Hing Polychrome (Vietnam) Co. Ltd. (“KHPV”) by way of cash amounting to USD25,000 and USD125,000 respectively, thus increasing KHPV’s contributed legal capital from USD224,974 to USD374,974. Accordingly, the Company’s equity interest in KHPV has increased from 60% to 80%.

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 save and except for the following:

Capital Expenditure		
    
       Approved and contracted for:	
RM’000	
          
           Property, plant and equipment	
630	

	

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 RM34.2 million and RM142.5 million for the current fourth (4th) quarter and financial year-to-date respectively compared with RM30.2 million and RM122.3 million reported in the preceding year corresponding quarter and period, representing an increase of RM4.0 million or 13.2% and RM20.2 million or 16.5% respectively.

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

Against the above backdrop, the Group reported profit before tax of RM0.88 million for the current 4th quarter, representing an improvement of RM0.85 million compared with profit before tax of RM30,000 recorded in the corresponding quarter last year. The profit before tax for the current financial year ended 30 April 2008 was RM5.3 million compared to RM4.6 million in the preceding financial year, representing an increase of RM0.7 million only 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 RM0.88 million for the current 4th quarter compared with profit before tax of RM0.60 million reported in the immediate preceding quarter, representing an improvement of RM0.28 million or 46.9%. The increase in profit before tax was mainly due to marketing and operating expenses incurred for “Zenne” gas cooker division in the immediate preceding 3rd quarter.

B3.	Prospects 

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

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		12 Months	
		Ended		Ended	
		30.4.2008		30.4.2008	
Current tax expense:					
 - Malaysian income tax	128		808	
 - Foreign tax	18		74	
	146		882	
Overprovision of Malaysian income tax in prior year	-		(26)	
Deferred tax expense *	(822)		(1,322)	
Total tax expense	(676)		(466)	
			
* In the Malaysian Budget 2008, it was announced that the corporate income tax rate will be reduced to 26% in 2008 and to 25% in 2009. Consequently, deferred tax liabilities are measured using the revised tax rate of 25%.

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 30 April 2008 are as follows:

	As at
30.4.2008
RM’000	

At cost	
528	
At book value	528	
At market value	507	

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 30 April 2008 are as follows:

	Short Term
(Secured)
RM’000		Long Term
(Secured)
RM’000	
Bank overdraft and bills payable	8,820		-	
Term loans	7,168		12,114	
Hire purchase	4,694		4,460	
Total borrowings	20,682		16,574	

Included in term loans are borrowings denominated in foreign currency amounting to USD4.3 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

The Board of Directors proposed a final tax exempt dividend of 1.5 sen per share totalling RM1,485,000 in respect of the current financial year ended 30 April 2008 (2007 : tax exempt dividend of 1.5 sen per share). The entitlement and payment dates will be announced at a date to be determined later by the Board of Directors. No interim dividend was declared during the financial year ended 30 April 2008 (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
30.4.2008
RM’000		12 Months
Ended
30.4.2008
RM’000	
Earnings
  Net profit attributable to equity holders of the Company	
1,366		
5,935	

Weighted average number of ordinary shares in issue (‘000)	
99,000		
99,000	

Basic earnings per share (sen)	
1.38		
5.99	
  
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 27 June 2008.

	By Order of the Board

	------------------------------
	Yap Toon Choy
	Group Managing Director
	27 June 2008