News

Profit Warning

Following a preliminary assessment of the financial results of the Sino Techfibre Limited (the "Company") and its subsidiaries (collectively the "Group") for the second quarter ended 30 June 2009 ("2Q2009"), the Board of Directors of the Company deems it is appropriate to issue a profit guidance in respect of the financial performance of the Group.

Due to the adverse operating environment in PU and Microfibre synthetic leather, the Group is expected to incur a loss in 2Q2009 mainly due to the following reasons:

1) Sale of certain PU synthetic leather ("PU") products at a lower price

When the businesses of two of our customers, who had ordered customised PU products, closed down. We had to sell the customised PU products at a lower price to other customers. This resulted in a loss being incurred for these customised PU products orders.

2) Demand for lower grades of PU and Microfibre

As the market demand for lower grades of PU and microfibre products persisted in 2Q2009, the Group's average selling prices for these two products remained weak and declined, despite the increase in the quantity sold as compared to 1Q2009.


Further details of the Group's performance will be disclosed when the Group announces its 2Q2009 financial results on 14 August 2009.


By Order of the Board
Li Wenheng
Chief Executive Officer
3 August 2009