News

Profit Guidance

Following a preliminary assessment of the financial results of the Sino Techfibre Limited (the "Company") and its subsidiaries (collectively the "Group") for the third quarter ended 30 September 2009 ("3Q2009"), 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 3Q2009 mainly due to the following reasons:

1) Demand of PU and Microfibre with a lower average selling price

In order to keep a good long term relationship with our customers, there's a change in our Group's product mix in 3Q2009. Although the quantity sold was increased as compared with 2Q2009, the Group's average selling price for these two products remained weak and decline.

2) Research expenditure

In order to be more competitive in the market for the future, we spent high amount of research expenditure in 3Q2009 to develop new PU, Microfiber and PMP products.

Further details of the Group's performance will be disclosed when the Group announces its 3Q2009 financial results on 6 November 2009.


On Behalf of the Board
Li Wenheng
Chief Executive Officer
Date: 22 October 2009