The Board of Directors of China Flexible Packaging Holdings Limited (“the Company”) considers it appropriate to issue a profit guidance, ahead of the announcement of the results of the Company for the second quarter ending 30 April 2008 (“2Q2008”).
The net profit for 2Q2008 is expected to be lower compared to the corresponding period of the immediately preceding financial year. The anticipated decline in performance is attributed to the following reasons:
i) Unexpected decrease in demand for our products from customers in southern part of China due to bad weather conditions during February this year,
ii) Continuous oil price hikes leading to the increase in our raw materials prices, and
iii) Temporary suspension of our production lines due to rotational general repairs and maintenance necessary to maintain our production capacity for continued long term supply of our products to the market. The repairs and maintenance of the production lines have been arranged in staggered phrases which were carried out in April 2008 and will last for approximately 30 to 45 days.
Despite the anticipated decline in net profit for 2Q2008, the Company will remain profitable for FY2008.
The full results of the Company for 2Q2008 will be announced in June 2008.
By Order Of the Board
Jackson Tso/Sophia Lim
Company Secretaries
29 April 2008
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