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

CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE THREE MONTHS AND YEAR-TO-DATE ENDED 31 JANUARY 2009

| | | 3 Months Ended | | 9 Months Ended |
| | | 31-Jan-09 | | 31-Jan-08 | | 31-Jan-09 | | 31-Jan-08 |
| | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) |
| | Note | RM'000 | | RM'000 | | RM'000 | | RM'000 |
Revenue | | | 37,154 | | 35,911 | | 121,845 | | 108,329 |
Operating profit | | 1,061 | | 1,285 | | 6,141 | | 6,002 |
Interest income | | 23 | | 20 | | 85 | | 164 |
Finance costs | | (669) | | (738) | | (1,812) | | (2,067) |
Share of net results in associates | (69) | | 34 | | 319 | | 363 |
Profit before tax | | 346 | | 601 | | 4,733 | | 4,462 |
Tax expense | B5 | (110) | | (180) | | (430) | | (210) |
Profit for the period | | 236 | | 421 | | 4,303 | | 4,252 |
Attributable to: | | | | | | | | |
Shareholders of the Company | | 428 | | 443 | | 4,400 | | 4,569 |
Minority interests | | (192) | | (22) | | (97) | | (317) |
| | | 236 | | 421 | | 4,303 | | 4,252 |
Earnings per share | | | | | | | | |
attributable to Shareholders | | | | | | | | |
of the Company (sen): | | | | | | | | |
Basic / Diluted | B13 | 0.43 | | 0.45 | | 4.44 | | 4.62 |
The Condensed Consolidated Income Statements should be read in conjunction with the audited financial statements for the financial year ended 30 April 2008 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 2009
(The figures have not been audited)
| | | | | Restated
| | | As at | | As at
| | | 31-Jan-09 | | 30-Apr-08
| Note | | RM'000 | | RM'000
ASSETS | | | | |
Non-current assets | | | | |
Property, plant and equipment | | | 86,117 | | 83,712
Prepaid lease payments | | | 5,602 | | 5,518
Investment in associates | | | 3,481 | | 3,298
Other investments | B7 | | 802 | | 802
| | | 96,002 | | 93,330
Current assets | | | | |
Receivables, deposits and prepayments | | | 23,866 | | 25,739
Inventories | | | 14,717 | | 12,284
Cash and cash equivalents | | | 6,955 | | 6,217
| | | 45,538 | | 44,240
TOTAL ASSETS | | | 141,540 | | 137,570
EQUITY AND LIABILITIES | | | | |
Equity attributable to Shareholders of the Company | | | | |
Share capital | | | 49,500 | | 49,500
Reserves | A2 | | 23,100 | | 19,925
| | | 72,600 | | 69,425
Minority interests | | | 2,873 | | 2,766
Total equity | | | 75,473 | | 72,191
Non-current liabilities | | | | |
Loans and borrowings | B9 | | 17,796 | | 16,589
Amount due to Directors | | | 3,432 | | 3,671
Deferred tax liabilities | A2 | | 5,044 | | 5,166
| | | 26,272 | | 25,426
Current liabilities | | | | |
Payables and accruals | | | 15,461 | | 19,238
Current tax liabilities | | | 10 | | 48
Loans and borrowings | B9 | | 24,324 | | 20,667
| | | 39,795 | | 39,953
Total liabilities | | | 66,067 | | 65,379
TOTAL EQUITY AND LIABILITIES | | | 141,540 | | 137,570
Net assets per share attributable to | | | | |
Shareholders of the Company (RM) | | | 0.73 | | 0.70

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 2008 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 2009

| | Attributable to Shareholders 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 | | | | | | | |
At 1 May 2008 | | 49,500 | 2,669 | (562) | 17,306 | 68,913 | 2,766 | 71,679
Effect of adopting FRS 112 | A2 | - | - | - | 512 | 512 | - | 512
At 1 May 2008 (Restated) | | 49,500 | 2,669 | (562) | 17,818 | 69,425 | 2,766 | 72,191
Foreign exchange translation | | | | | | | |
differences | | - | - | 260 | - | 260 | 204 | 464
Net gain recognised | | | | | | | |
directly in equity | | - | - | 260 | - | 260 | 204 | 464
Profit / (Loss) for the period | | - | - | - | 4,400 | 4,400 | (97) | 4,303
Total recognised income | | | | | | | |
and expense for the period | | - | - | 260 | 4,400 | 4,660 | 107 | 4,767
Dividends to shareholders | | - | - | - | (1,485) | (1,485) | - | (1,485)
At 31 January 2009 | | 49,500 | 2,669 | (302) | 20,733 | 72,600 | 2,873 | 75,473
Unaudited | | | | | | | |
At 1 May 2007 | | 49,500 | 2,669 | (316) | 12,849 | 64,702 | 3,043 | 67,745
Effect of adopting FRS 112 | A2 | - | - | - | 1,053 | 1,053 | - | 1,053
At 1 May 2007 (Restated) | | 49,500 | 2,669 | (316) | 13,902 | 65,755 | 3,043 | 68,798
Foreign exchange translation | | | | | | | |
differences | | - | - | (352) | - | (352) | (325) | (677)
Net loss recognised | | | | | | | |
directly in equity | | - | - | (352) | - | (352) | (325) | (677)
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
Dividends to shareholders | | - | - | - | (1,485) | (1,485) | - | (1,485)
At 31 January 2008 | | 49,500 | 2,669 | (668) | 16,986 | 68,487 | 2,401 | 70,888
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 2008 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 2009

| | | 9 Months Ended
| | | 31-Jan-09 | | 31-Jan-08
| | | (Unaudited) | | (Unaudited)
| | | RM'000 | | RM'000
Cash flows from operating activities | | |
| Profit before tax | 4,733 | | 4,462
| Adjustments for: | | |
| | Non-cash items | 8,329 | | 7,919
| | Non-operating items | 1,727 | | 1,904
| Operating profit before working capital changes | 14,789 | | 14,285
| Changes in working capital: | | |
| | Inventories | (2,416) | | (591)
| | Receivables, deposits and prepayments | 2,278 | | (2,197)
| | Payables and accruals | (4,092) | | 1,148
| Cash generated from operations | 10,559 | | 12,645
| | Tax paid | (590) | | (482)
| Net cash generated from operating activities | 9,969 | | 12,163
Cash flows from investing activities | | |
| Acquisition of other investments | - | | (154)
| Proceeds from disposal of  an associate | - | | 370
| Proceeds from disposal of  property, plant and equipment | 845 | | 234
| Purchase of property, plant and equipment | (5,274) | | (4,447)
| Interest received | 85 | | 156
| Net cash used in investing activities | (4,344) | | (3,841)
Cash flows from financing activities | | |
| Proceeds from term loans | 2,857 | | 3,545
| Repayment of advances to a Director | (239) | | (462)
| Repayment of term loans | (3,774) | | (2,928)
| Drawdown/(Repayment) of other borrowings | 1,710 | | 1,003
| Repayment of hire purchase liabilities | (4,415) | | (3,614)
| Dividends paid | (1,485) | | (1,485)
| Interest paid | (1,812) | | (2,067)
| Net cash used in financing activities | (7,158) | | (6,008)
Exchange differences on translation of the | | |
| financial statements of foreign operations | 490 | | (413)
Net (decrease)/increase in cash and cash equivalents | (1,043) | | 1,901
Cash and cash equivalents at beginning of financial year | (447) | | 1,167
Foreign exchange differences on opening balance | 54 | | (107)
Cash and cash equivalents at end of financial period | (1,436) | | 2,961
Cash and cash equivalents at end of financial period comprise: | | |
| Cash & bank balances | 4,655 | | 6,560
| Deposits with licensed banks (excluding deposits pledged) | 2,188 | | 1,071
| Bank overdrafts | (8,279) | | (4,670)
| | | (1,436) | | 2,961
The Condensed Consolidated Cash Flow Statement should be read in conjunction with the audited financial statements for the financial year ended 30 April 2008 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 2008. 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 2008.

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 of the Group for the financial year ended 30 April 2008 except for the adoption of the following FRSs and Interpretations, where applicable, that are effective for its financial period beginning on 1 May 2008:

FRS 107			 Cash Flow Statements
FRS 111			 Construction Contracts
FRS 112			 Income Taxes
FRS 118			 Revenue
FRS 120	Accounting for Government Grants and Disclosure of Government Assistance
Amendment to FRS 121	The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operation
FRS 134		Interim Financial Reporting 
FRS 137		Provisions, Contingent Liabilities and Contingent Assets
IC Interpretation 1	Changes in Existing Decommissioning, Restoration and Similar Liabilities
IC Interpretation 2	Members’ Shares in Co-operative Entities and Similar Instruments
IC Interpretation 5	Rights to Interest arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
IC Interpretation 6	Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment
IC Interpretation 7	Applying the Restatement Approach under FRS 129_2004 Financial Reporting in Hyperinflationary Economics 
IC Interpretation 8	Scope of FRS 2

The initial application of these FRSs and Interpretations, where applicable, are not expected to have any material impact on the financial statements of the Group other than the change discussed below:
FRS 112: Income Taxes
FRS 112 addresses the accounting treatment for income taxes. However, FRS 112 does not prescribe the accounting treatment for reinvestment allowance and investment tax allowance (tax incentives). In the current accounting policy for income taxes, reinvestment allowance or investment tax allowance is treated as the tax base of an asset. On adoption of FRS 112, the Group intends to account for these tax incentives by applying the analogy of the accounting treatment for unused tax losses in FRS 112. The change in accounting policy is applied retrospectively and as disclosed below, certain comparative amounts as at 30 April 2008 have been restated:-

As previously reported
RM’000

Prior year adjustment
RM’000

As restated 

RM’000

Consolidated Balance Sheet
  As at 30 April 2008

Retained profits | 17,306 | 512 | 17,818
Deferred tax liabilities | 5,678 | (512) | 5,166

Consolidated Income Statement
  For the year ended 30 April 2008

Profit for the year | 5,818 | 512 | 6,330

	At the date of authorisation of these interim financial statements, the following FRSs and Interpretations were issued but not yet effective and have not been applied by the Group:-
FRSs and Interpretaions | Effective for Financial Periods beginning on or after
FRS 4 | Insurance Contracts | 1 January 2010
FRS 7 | Financial Instruments : Disclosure | 1 January 2010
FRS 8 | Operating Segments | 1 July 2009
FRS 139 | Financial Instruments : Recognition and Measurement | 1 January 2010
IC Interpretation 9 | Reassessment of Embedded Derivatives | 1 January 2010
IC Interpretation 10 | Interim Financial Reporting and Impairment | 1 January 2010

	The impact of applying FRS 139 on the financial statements upon first adoption is not disclosed by virtue of the exemption given in FRS 139.103AB. The initial application of the other FRSs and Interpretations, where applicable, are not expected to have any material impact on the Group’s financial statements.

A3.	Seasonal and cyclical factors

The Group’s business operation results were not materially affected by any major seasonal or cyclical factors.
	
A4.	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.

A5.	Material changes in estimates

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

A6.	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.

A7.	Dividend Paid

The first and final tax exempt dividend of 1.5 sen per share or 3% totaling RM1,485,000 in respect of the financial year ended 30 April 2008 was paid by the Company to the entitled shareholders of the Company on 21 November 2008.

A8.	Segmental information

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

Results for 9 months ended 31 January 2009 | |
| | | | | Investment | |
| | | Manufacturing | Trading | Holding | Adjustment | Consolidated
| | | RM'000 | RM'000 | RM'000 | RM'000 | RM'000
Revenue from external customers | 118,092 | 3,753 | - | - | 121,845
Inter-segment revenue | | 2,566 | 201 | - | (2,767) | -
Total revenue | | 120,658 | 3,954 | - | (2,767) | 121,845
Segment results | | 6,248 | 113 | (76) | (144) | 6,141
Interest income | | | | | | 85
Finance costs | | | | | | (1,812)
Share of net results in associates | | | | | 319
Profit before tax | | | | | 4,733
Tax expense | | | | | | (430)
Profit for the period | | | | | 4,303

A9.	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 2009.

A10.	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 save as disclosed below:-

The Company had on 5 September 2008 acquired 2 ordinary shares of RM1.00 each in the share capital of Zenne Appliances Sdn. Bhd. (“ZASB”) at a total purchase consideration of RM2.00 only. Upon the transfer of shares, ZASB has become a wholly-owned subsidiary of the Company.

A11.	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 2008.

A12.	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 RM37.1 million and RM121.8 million for the current 3^rd quarter and financial year-to-date ended 31 January 2009 compared with RM35.9 million and RM108.3 million reported in the preceding year corresponding quarter and period, representing an increase of RM1.2 million or 3.5% and RM13.5 million or 12.5% respectively. 

The growth in revenue was mainly attributed to the increase in selling price, and stronger customers’ demand in the first half of the current financial year.

Against the above backdrop, the Group reported profit before tax (“PBT”) of RM0.3 million and RM4.7 million for the current 3^rd quarter and financial year-to-date as compared to PBT of RM0.6 million and RM4.4 million recorded in the corresponding quarter and period last year respectively, representing a decrease of RM0.3 million or -42% for the current quarter under review. However, the PBT for the financial year-to-date increased by RM0.3 million or 6% mainly attributed to higher revenue achieved in the first half of the financial year.

B2.	Variation of results against preceding quarter 

The Group registered PBT of RM0.3 million for the current 3^rd quarter as compared to PBT of RM2.4 million reported in the immediate preceding quarter, representing a decrease of RM2.1 million or -85%. The decrease in PBT was mainly due to the decline in customer demand in the current 3^rd quarter.

B3.	Prospects 

The financial crisis has dragged the world into a recession. The global economy will remain uncertain and it is difficult to predict what lies ahead in today’s challenging economic environment. Nevertheless, barring any unforeseen circumstances, the Board cautiously expects the Group to achieve a satisfactory performance for the current financial year ending 30 April 2009.

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 2009.

B5.	Tax expense 
| | 3 Months | | 9 Months
| | Ended | | Ended
| | 31.1.2009 | | 31.1.2009
Current tax expense | | | |
- Malaysian income tax | 110 | | 613
- Overprovision in prior year | - | | (61)
| 110 | | 552
Deferred tax expense | - | | (122)
Total | 110 | | 430
			
The effective tax rate of the Group for the current financial year-to-date was lower than the statutory income tax rate of 25% mainly due to utilization of reinvestment allowance available to 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 2009 are as follows:

As at
31.1.2009
RM’000

At cost | 528
At book value | 528
At market value | 498

B8.	Status of corporate proposal announced 

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

B9.	Group loans and borrowings 

The Group loans and borrowings as at 31 January 2009 are as follows:

Short Term
RM’000

Long Term
RM’000

Unsecured | | |
Bills payable | 1,594 | | -
Bankers’ acceptance | 3,186 | | -
| 4,780 | | -
Secured | | |
Bank overdrafts | 8,279 | | -
Bills payable | 1,466 | | -
Term loans | 6,134 | | 11,884
Hire purchase liabilities | 3,665 | | 5,912
| 19,544 | | 17,796
Total borrowings | 24,324 | | 17,796

The loans and borrowings are denominated in Ringgit Malaysia except for certain term loans and bills payable amounting to RM15.5 million which are denominated in US Dollar.

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 dividend has been proposed or declared in respect of the current financial year during the current quarter and financial year-to-date under review (1.5.2007 to 31.1.2008 : NIL).

B13.	Basic earnings per share 

	The basic earnings per share are calculated by dividing profit for the period attributable to Shareholders of the Company by the weighted average number of ordinary shares in issue during the current 3^rd quarter under review as follows:-

3 Months
Ended
31.1.2009
RM’000

3 Months
Ended
31.1.2008
RM’000

Earnings
  Profit attributable to Shareholders of the Company

428

443

Weighted average number of ordinary shares in issue (‘000) | 99,000 | | 99,000
Basic earnings per share (sen) | 0.43 | | 0.45
  
B14.	Auditors’ report on preceding annual financial statements

	The independent auditors’ report on the financial statements of the Group and of the Company for the financial year ended 30 April 2008 was unqualified.

B15.	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 2009.

	By Order of the Board

	------------------------------
	Yap Toon Choy
	Group Managing Director
	24 March 2009