Gold Peak Announces 2004/05 Interim Results.

HONG KONG -- Gold Peak Industries (Holdings) Limited, the Hong Kong international industrial group specializing in batteries, electrical and electronic products, announces its interim results.

Financial Highlights of Interim Results

(for the six months ended September 30, 2004)

--Consolidated turnover grew by 32.8% to HK$1,080 million, mainly due to the good performance of the electronics business. Consolidation of sales of Lighthouse and CIH Limited, both of which became subsidiaries in April 2004, also contributed to the sales growth.

--Profit attributable to shareholders was HK$55.6 million, up 5.7%.

--Earnings per share increased from 9.8 Hong Kong cents to 10.2 Hong Kong cents, up 4%.

--Proposed interim dividend per share: 4.0 Hong Kong cents (2003/04: 4.0 Hong Kong cents)

Prospects

Commenting on the Group's prospects, Victor Lo, Chairman & Chief Executive of Gold Peak said, "The Group's major business divisions are expected to face volatile market conditions and keen competition due to fluctuating commodity prices, rising interest rates as well as the austerity measures implemented in China.

Sales of GP Batteries are expected to remain steady but operating conditions will be difficult as materials prices are expected to stay high. It will continue to exercise tight cost control to maintain competitiveness.

The business environment in most of CIH Limited ("CIHL")'s markets will continue to improve. CIHL will continue to invest and grow its light fittings business. Barring unforeseen circumstances, outlook for the Group's electronics business remains positive for the rest of the financial year."

Business Review

Singapore-listed GP Industries - 87.2%-owned by Gold Peak

1. Electronics Division

--The Electronics Business continued to perform well with sales growth of 12.9% over the corresponding period last year due to the increase in sales of both the professional and commercial electronic products. Profit contribution from components associated companies also continued to grow strongly due to the robust economy in China. As a result, profit from the electronics and components business increased by more than 60% in the period.

--Sales of automotive wire harness rose by about 14% and profit contribution remained steady. Exports to Japan were stable while demand from customers in the US registered strong growth. However, the financial austerity program recently introduced by the Chinese government has suppressed demand for passenger vehicles, resulting in decreased profit contribution from wire harness associated companies in China.

--The cable business continued to perform well with profit contribution improved despite rising materials costs.

--The loudspeaker business performed steadily of which sales of branded loudspeakers increased by about 6%.

Singapore-listed CIH Limited - 65.1%-owned by GP Industries

--During the period, GP Industries increased its stake in CIHL from 49.3% as at March 31, 2004 to 65.1% through purchases of additional shares in the open market, making it a subsidiary of the Group.

--Although competition remained intense, performance in most markets improved. Despite rising costs of raw materials, gross profit margin was maintained.

--In the quarter ended September 30, 2004, turnover of the 50:50 joint-venture with Schneider Electric SA for the electrical wiring devices and installation systems business achieved significant sales growth due to favorable business sentiments resulted from increased building activities in most of its markets in Asia and the Middle East. In China, the business sentiment was relatively stable but market conditions remained highly competitive.

--The light fittings business continued to grow. Efforts have been concentrated in promoting the Pierlite and GP brands, and in strengthening the sales and product development teams.

Singapore-listed GP Batteries - 49.1%-owned by GP Industries

--GP Batteries' sales grew by 9.1%, but consolidated net profit after taxation and minority interests decreased by 16.6%.

--Sales increased mainly due to the continued increase in sales of Nickel Metal Hydride and Alkaline primary cylindrical batteries. Although total sales of Lithium Ion batteries rose, market has become increasingly competitive since the middle of the year due to over supply situation.

--Net profit decreased mainly due to rising materials costs, especially Nickel and Cobalt, and exceptional expenses incurred in relation to the Cadmium issue in the two plants in Huizhou, China. To cope with rising materials prices, the division exercised tighter cost control on overheads and expenses, resulted in a lower drop in profits.

--The 75%-owned Zhongyin Ningbo Battery, making Alkaline primary cylindrical batteries in China, continued to perform strongly.

Technology & Strategic Division

Lighthouse Technologies Limited whose main business is the development and selling of LED display screens became a subsidiary of the Group in April 2004 as a result of GP Industries' acquisition of CIHL shares to above 50% in April 2004. Lighthouse is 46.6% and 29.6% owned by the Company and CIHL respectively. Lighthouse continued to experience severe competition particularly in the US market and incurred more expenses on streamlining its operations and developing new products to improve competitiveness.

Financial Review

During the period, the Group's net bank borrowings increased by HK$308 million to HK$2,148 million mainly due to GP Industries' acquisitions of additional shares in CIHL and consolidation of Lighthouse's bank borrowings. As at September 30, 2004, the aggregate of the Group's shareholders' fund and minority interests was HK$2,142 million. The Group's gearing ratio (the ratio of consolidated net bank borrowings to shareholders' fund and minority interests) was 1, as compared with 1.19 as at March 31, 2004. The gearing ratios of the Company, GP Industries and GP Batteries were 0.86 (March 31, 2004: 0.89), 0.45 (March 31, 2004: 0.48) and 0.91 (March 31, 2004: 0.75) respectively. CIHL maintained a net cash position as at September 30, 2004 and December 31, 2003 respectively.

The Group continued to manage foreign exchange and interest rate risks prudently. Forward contracts, borrowings in local currencies and local sourcing have been arranged to match monetary assets with monetary liabilities in order to minimize foreign exchange risk. At September 30, 2004, 37% (March 31, 2004: 45%) of the Group's bank borrowings was revolving or repayable within one year whereas 63% (March 31, 2004: 55%) was mostly repayable between one to five years. Most of these bank borrowings were based on floating interest rates. Approximately 15%, 34% and 45% of the Group's bank borrowings were in US dollars, Singapore dollars and Hong Kong dollars respectively.

Background information on Gold Peak:

Gold Peak Group is an Asian multinational group which owns a diversified portfolio of high-quality industrial investments via its major industrial investment vehicle, the Singapore-listed GP Industries Limited. Its Technology and Strategic Division is primarily engaged in the development of new product technologies and strategic investments. In the industrial sector, the Group has established a leadership position in Asia for most of its product categories including GP Batteries and CLIPSAL electrical installation products.

The parent company, Gold Peak Industries (Holdings) Limited, was established in 1964 and has been listed in Hong Kong since 1984. Currently, Gold Peak holds an 87.2%* interest in GP Industries while GP Industries holds a 65.2%* interest in CIH Limited ("CIHL") and a 49.1%* interest in GP Batteries. GP Industries, GP Batteries and CIHL are listed in Singapore.

Gold Peak Group has manufacturing, research & development, marketing and distribution operations in more than ten countries around the world.

Gold Peak's ordinary shares are listed on the Hong Kong Stock Exchange. Ordinary share information on Gold Peak may be accessed on the Reuters Equity 2000 service under the symbol 0040 HK and on Bloomberg under the symbol 40 HK. Gold Peak ADRs, each equal to ten ordinary shares, trade on the NASD OTC Bulletin Board under the symbol GPINY.

( * shareholding % as at November 10, 2004 )

For more information on Gold Peak or GP Industries, please visit our website at: www.goldpeak.com or www.gp-industries.com