The company’s interim report dated 17 September 2007, stated that the unaudited consolidated net profit of the group for the six months ended 30 June 2007, experienced a decline compared with that for the same period of 2006 due to a number of adverse factors including the weakening demand from customers as a result of the downturn in the US housing market, the appreciation of the RMB against the US dollar, an increase in the costs of chemicals, foam, timber and labour, and the reduction of export tax rebates. These negative factors are deemed to have remained unchanged, and to a certain extent deteriorated.
The statement was issued by Kasen International Holdings Chairman Zhu Zhangjin on 21st January.