Singapore-Listed CIH Ltd Announces 2004/05 Final Results.

HONG KONG -- Gold Peak Industries (Holdings) Limited's Singapore listed member company, CIH Ltd., announced its consolidated results for the year ended March 31, 2005.

2004/05 financial highlights of Singapore-listed CIH Limited ("CIHL")

For the 15-month financial period ended March 31, 2005:

--CIHL's turnover ended March 31, 2005 was S$157 million.

--The consolidated net profit after taxation and minority interests attributable to shareholders was S$0.85 million.

CIH Ltd is 67.6%-owned by the Singapore-listed GP Industries Ltd which is an 87.1% subsidiary of Gold Peak Industries (Holdings) Ltd (SEHK code: 40).

Prospects of Singapore-listed CIHL

Commenting on CIHL's prospects, Victor Lo, CIHL Chairman, said, "Most of the markets are expected to continue growing but competition will remain keen. In China, the measures undertaken by the Central Government, including the imposition of capital gains tax in Shanghai and the general tightening of credit, are expected to have an impact on the building industry." Victor Lo is also Chairman & Chief Executive of Gold Peak.

To counter the rising raw material prices and contain operating expenses, the 50:50 joint venture with Schneider Electric SA, Clipsal Asia Holdings Limited ("CAHL"), will focus on productivity improvement and cost control. The introduction of the new C-Concept range of wiring accessories in Thailand, Taiwan, the Philippines and Korea will strengthen its position to grow its business there. The introduction of the high-end C-Metro and re-launch of mid-priced C-Profile range of electrical wiring accessories will spearhead CAHL's growth in other markets.

To broaden its range of light fitting products, CIHL has invested in a 10% equity interest in Primo Lite Co., Ltd in Taiwan which develops, manufactures and supplies Light Emitting Diode ("LED") light fitting products and accessories to building projects and OEM customers. CIHL will continue to invest and grow its light fittings business with a particular focus on LED light fitting products. The new factory in Shanghai for general light fitting products will become operational in July 2005, and it will enhance CIHL's competitiveness by providing a shorter delivery time for customised products for project sales. Efforts will be concentrated to aggressively promote its GP brand name. CIHL Group will continue to expand its product ranges and set up new sales offices to strengthen its distribution network.

As part of its efforts to rationalise its existing investments, CIHL has decreased its investment in Gerard Corporation Pty Ltd in Australia from 40% to 19%. CIHL Group will continue to explore new investment opportunities and rationalise its existing investments.

Business Review of Singapore-listed CIHL

On October 20, 2004, CIHL announced the change of its financial year-end from December 31 to March 31 to align its financial year with that of GP Industries Limited, which became CIHL's immediate holding company in April 2004. Consequently, the accounts of CIHL for this financial period covered a period of 15 months from January 1, 2004 to March 31, 2005.

During the 15 months ended March 31, 2005, sales of CAHL increased by 52% compared with the financial year ended December 31, 2003. This comprised sales growth of approximately 25% for the 12 months ended December 31, 2004 plus the additional 3 months' sales in 2005. The improvement in sales was due to favourable business sentiments in its markets in Asia and strong building activities in the Middle East. However, as only 50% of CAHL's sales turnover has been taken up by CIHL Group using proportionate consolidation, the reported sales turnover for the 15 months financial period decreased by 17% to S$157 million compared with that of the financial year ended December 31, 2003.

An operating loss before exceptional items and share of results of associated companies of S$5.8 million was recorded for the 15 months ended March 31, 2005. This was mainly due to a lower gross margin of 30.6% versus 32.6% of the previous year as a result of rising cost of raw materials, disposal of slow-moving stocks and higher distribution and administrative costs. The realized exchange gain of S$2.3 million was mainly due to the conversion of Australian dollar deposits into Singapore dollar deposits.

In China, competition continued to be keen. The austerity measures implemented by the Chinese government including the tightening of credit have slowed down some of the major projects. Nevertheless, strong sales growth has been achieved in the electronic control and data-communication products. In Hong Kong, the improvement in sales was due to a strong recovery in the residential market and increased activities in the development and renovation of hotels and service apartments.

Competition in other Asian markets remained intense but CIHL Group's performance in these markets improved except Singapore and Vietnam. During the financial period under review, the integration of wiring accessories, electronic control and datacom operations in Singapore has been completed. The relocation and integration of CAHL's manufacturing facilities from Dongguan to Huizhou in China, and from Johor Bahru to Shah Alam in Malaysia, to enhance efficiency and profitability have also been completed.

In the Middle East, strong sales growth was achieved due to higher levels of building activity in the region. The new manufacturing facility in Sharjah International Free Zone set up in June 2004 continued to expand with the installation and commissioning of new injection and extrusion equipment.

The sales for light fittings in China have slowed down due to the disruption caused by the change from the Pierlite to GP brand. Efforts are currently concentrated to promote the GP brand of light fitting products in China. Promotional activities including product launches, seminars and roadshows were held in major cities such as Tianjin, Shenyang, Shanghai, Hangzhou, Changsha and Xiamen. The GP branded products are targeting projects at the high and medium priced market segments. To ensure cost competitiveness, the existing product ranges are being re-engineered.

During the financial period, share of losses incurred by associated companies amounted to S$0.7 million compared with a profit of S$13.7 million recorded for the financial year ended December 31, 2003. This was mainly due to the disposal of CIHL Group's entire 52.4% interest and 39.8% interest in Gerard Industries Pty Ltd in Australia and Lovato SpA in Italy respectively at the end of 2003. Consequently, the taxation charge for the financial period reported on was substantially lower.

Notes to Editor

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 87.1%(a) interest in GP Industries while GP Industries holds a 49.1%(a) interest in GP Batteries International Limited and a 67.6%(a) interest in CIH Limited. GP Industries, GP Batteries and CIH are listed in Singapore.

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

For more information, please visit our website at www.goldpeak.com

Background information on CIH Limited:

Incorporated in Singapore in 1991, CIH Limited ("CIHL") (formerly known as Clipsal Industries (Holdings) Limited) is principally engaged in the development, manufacture and marketing of electrical installation products. It is one of the major suppliers of electrical installation products in Asia.

CIHL has been listed on the Mainboard of the Singapore Exchange Securities Trading Limited since 1992, and is currently a component stock of the Business Times Singapore Regional Index.

In December 2003, CIHL formed a 50-50 joint venture with Schneider Electric SA of France to manufacture and distribute electrical wiring devices and installation systems ("EWDIS") in Asia. Both CIHL and Schneider Electric have injected their EWDIS business in this joint venture.

In addition, CIHL holds investments in lighting products, LED superscreens and other businesses.

For more information, please visit our website at www.cihlimited.com

((a) shareholding % as at May 23, 2005)

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.