Domestic/commercial drops the ball …

• Results were below SGX expectations. 1QFY09 net profit forms only
16% of SGX FY09 forecast.

• Sales decline of 8.4% yoy, attributable to the lower contribution from
domestic/commercial applications, which was partly offset by revenue
growth from industrial applications.

• Although gross profit came off by 4.8% yoy to RMB15.8m in 1Q09, the
change in sales mix as a result of the higher contribution of the industrial application segment pull gross margin up by 2.8% pts to 73.6% for the period.

• However, SGX were not impressed by the poor showing on the
operation front as operating expenses crept up 122% yoy, and
accounted for 22% of sales (vs. 9% in 1Q08).

TP: S$0.04