Final Results

JIASEN INTERNATIONAL HOLDINGS LIMITED

嘉森國際控股有限公司

FiNAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015

Jiasen International Holdings Limited ("Jiasen" or "the Company"), together with its subsidiaries ("the Group"), is pleased to report its final results for the year ended 31 December 2015 (FY2015). Jiasen is a designer, manufacturer and wholesaler of wooden home furnishings, high-end solid wooden doors and other wooden design solutions to both the domestic Chinese and overseas markets.

FINANCIAL KEY POINTS

· Revenue for the year ended 31 December 2015 decreased by 27% to RMB 639.2 million (FY2014: RMB 870.9 million) reflecting a slowdown in China's economic growth which has had an adverse effect on consumer confidence and demand across many sectors, including property.

· Profit before tax for the year ended 31 December 2015 decreased by 64% to RMB 77.9 million (FY2014: RMB 214.4 million), inclusive of a provision against bad debts of RMB 52.3 million.

· Profit after tax for the year ended 31 December 2015 decreased by 65% to RMB 55.8 million (FY2014: RMB 158.5 million).

· Cash and cash equivalents as at 31 December 2015 decreased by 10% to RMB 299.1 million (FY2014: RMB 333.9 million).

· Following the review of our dividend policy announced at our interim results, the Board has decided to suspend dividend payments in light of the difficult trading environment, and will review it again when conditions and the Company's performance improves.

OPERATIONAL KEY POINTS

· The Group now has 16 distributors which operate 54 outlets across China.

· Diversification away from non-door products to mitigate market margin erosion seen with bulk door supply has continued to be a core focus of the Group.

· Exports remain a small part of the business contributing 13.4% of revenue in 2015 (2014: 12.6%).

· Furniture and fittings accounted for 67.7% (2014: 60.2%) whilst doors contributed 20.4% (2014: 28.2%) of the Group's revenue.

· In light of the wider macroeconomic conditions and reduced demand for our products in the property segment, the Board has agreed with the local government (Quanzhou Economic Development District - Guangqiao Sector) ("QEDD") to defer the decision to purchase 47 hectares of land for its new factory until the end of 2016. Should the Company decide against the investment, QEDD will refund the down payment in full.

· The Group has made a provision of RMB 52.3 million against an outstanding debt of RMB 84.6 million. An agreement has been reached with the customer stipulating that the balance be repaid as the properties within which the Group's products were installed are ultimately sold. However, due to the current status of China's property market, the directors have chosen to provide against a significant portion of this outstanding balance.

OUTLOOK

· Trading in the first five months of 2016 has continued to be challenging.

· The Board expects trading conditions to remain challenging over the short to medium term, particularly for the property segment of the business, but it continues to have confidence in the long term fundamentals of China's property market driven by a change in child policy, continued urbanisation and the importance of home ownership in China.

· The Group will continue to scale back the property segment, which took place in the last three months of 2015, in an attempt to mitigate the risk of bad debt.

· We will look to appoint new distributors and increase our marketing and promotional activities to ensure the business is better positioned than if it were to remain heavily reliant upon its property segment.

COMMENTING ON THE RESULTS, WEIGANG CHEN (CHAIRMAN) SAID:

"It has been a very challenging time for the Chinese property market as the economy has slowed. The Group has seen consumer confidence impacted as a result and this is effecting our revenue. Jiasen is taking mitigating actions to ensure that we are protected both now and in the short to medium term by diversifying our revenue mix, reviewing the purchase of land for our new factory, and suspending dividend payments. The Board remains committed to the long term opportunities that the Chinese property market offers, and is confident that we have the fundamentals in place to manage the business through these challenging times."

For further information, please visit www.jsih.net or contact:

Notes to Editors

· Jiasen is an international property fit-out business specialising in designing, manufacturing, kitting and installation of multiple wooden products for residential properties. The Company was established in 2001 and is based in Quanzhou City, Fujian province, located in south-eastern China. Its products are sold and marketed under the 'Fuyou' brand and produced in its 83,000 sqm factory in Nan'an City, Fujian province.

· Jiasen's main products include doors, wall panels and assorted fixtures, such as fitted wardrobes, cupboards and skirting boards, and furniture which are sold principally to property development projects, through branded 'Fuyou' retail stores and to export markets. The Company's products are sold in three main segments: residential and property development projects, wholesale distribution and export.

EXECUTIVE CHAIRMAN'S STATEMENT

Introduction

The slowdown in China's economic growth has had an adverse effect on consumer confidence and demand across many sectors, including property. These external factors have affected our performance. Group revenues for the period decreased by 26.6% to RMB 639.2 million (2014: RMB 870.9 million) reflecting a slowdown in sales for our multiple wooden-products and reduced demand for high-end Refined Housing Decoration (RHD) or "semi-furnished homes".

The property segment of our business contributed 41.7% of our group revenues (2014: 61.9%). The distribution segment of our business performed strongly and revenues grew by 29.4% to RMB 286.9 million (2014: RMB 221.7 million) as a result of new outlets opened during the period. The Company now has 16 distributors which operate 54 outlets across China. Export remains a small part of our business contributing 13.4% of revenue in 2015 (2014: 12.6%).

Diversification away from non-door products to mitigate market margin erosion seen with bulk door supply has continued to be a core focus and this has been particularly successfully. Furniture and fittings accounted for 67.7% (2014: 60.2%) whilst doors contributed 20.4% (2014: 28.2%) of group revenue.

Strategy

China's economic slowdown has had an impact on demand for RHD as property developers delayed projects or decreased their investment in residential developments in 2015. We expect trading conditions to remain challenging over the short to medium term, particularly for the property segment of our business.

In light of this and in order to better position the business, the Board has taken action to reconsider the sales strategy for the Group to scale back the property segment, which took place in the last three months of 2015 and continues into 2016, in order to insulate the business from the risk of doubtful debts against trade receivables. This is highlighted by the fact that a charge against doubtful debts amounting to RMB 52.3 million is recorded in the Statement of Comprehensive Income for the year ended 31 December 2015. The Group will continue to work with property developers but is likely to use intermediaries and therefore there will be a change to segmental revenues in 2016. Overall, the Group expects to switch its focus onto the wholesale distribution segment and servicing retail outlets until there is a recovery in the housing market which is not expected in the short term.

Our core customers within the wholesale distribution business are homeowners and interior designers who want to furnish their own homes or refurbish their existing homes. During the year, we began to work more closely with our distributors and going forward, we will look to appoint new distributors and increase our marketing and promotional activities to enhance performance. These actions will ensure the business is better positioned than it would have been having a reliance on the property segment within the current market environment and allow for greater cost control.

Diversification of our product offering remains a core focus and we will continue to increase the sale of non-door products through our wholesale distribution segment. We continue to look seek suitable, complementary foreign brands in permanent fixtures for strategic collaboration in the medium to long-term.

Land Purchase and Future Development

In light of the wider macroeconomic conditions and reduced demand for our products in the property segment, the Board has decided to review the decision to purchase 47 hectares of land for its new factory. The Company has verbally agreed with the local government (Quanzhou Economic Development District - Guangqiao Sector) ("QEDD") to defer the decision to invest in the new land until the end of 2016. The total cost of the land is RMB 217 million and the Company made a down payment of RMB 69 million on February 2015. Should the Company decide against the investment, QEDD will refund the down payment in full. The Board will review the investment over the next few months against the economic backdrop and the property market and decide on the best course of action for the long term future of the business and its shareholders.

Dividend Policy

Following a review of the dividend policy as announced at our interim results on 25 September 2015, the Board has decided to suspend dividend payments in light of the difficult trading environment. The Board will review the dividend policy again when economic conditions and the Company's performance improves and following the further appraisal of the proposed factory development.

Outlook

Trading in the first five months of 2016 has continued to be challenging. While we have confidence in the long term fundamentals of China's property market driven by a change in child policy, continued urbanisation and the importance of home ownership in China, we expect the trading environment to continue to be difficult for the remainder of 2016. In order to better position the business in the short to medium term, Jiasen

· has temporarily scaled back activity in the property segment to control costs and mitigate business risk in this slower market;

· is focusing on the wholesale distribution segment of the business which is significantly less exposed to volatility in the new property build market; and

· has deferred the further payment and purchase of the new land use rights for factory development until the end of 2016.

Weigang Chen

Executive Chairman

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

AT 31 DECEMBER 2015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 31 DECEMBER 2015

The consolidated financial statements were approved and authorised for issue by the Board of Directors on 29 June 2016 and signed on their behalf by

Weigang Chen, Executive Chairman

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015

NOTES TO THE FINANCIAL STATEMENTS

1. General Information

Jiasen International Holdings Limited (the "Company" or "Jiasen") was incorporated on 31 October 2012 and is domiciled in the British Virgin Islands. The Company's registered office is Commerce House, Wickhams Cay 1, P. O. Box 3140, Road Town, Tortola, VG1110, British Virgin Islands. Jiasen is a limited liability company which is admitted to the United Kingdom Alternative Investment Market.

Jiasen was established as an investment holding company for two wholly owned subsidiaries, Jiasen Holdings (HK) Company Limited ("Jiasen HK") and Quanzhou Jiasen Wood Co., Ltd. ("Jiasen PRC"), (together, the "Group").

The main activity of the Company and Jiasen HK is that of an investment holding company. Jiasen PRC is principally engaged in the business of design, manufacturing and wholesalers of high quality wooden doors and home furnishings. The principal place of business of the Group is in the People's Republic of China ("PRC"). Amounts are reported in RMB thousands, unless otherwise stated.

2. Basis of Preparation

The Consolidated financial statements of the Group are prepared under the historical cost convention and modified to include other bases of valuation as disclosed in other sections under significant accounting policies, and in compliance with International Financial Reporting Standards ("IFRS").

The consolidated financial statements incorporate the financial information of the Company and its subsidiaries. A subsidiary is an entity (including special purpose entities) over which the Group has the power to govern the financial operating policies, generally accompanied by a shareholding giving rise to the majority of the voting rights, so as to obtain benefits from its activities.

A subsidiary is consolidated from the date on which control is transferred to the Group up to the effective date on which control ceases, as appropriate.

The consolidated financial statements present the results of the Company and its subsidiaries (the "Group") as if they formed a single entity.

Intra-group balances and transactions and any income and expenses arising from intra-group transactions are eliminated on consolidation. Unrealised gains and losses arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group's interest in the investee.

The financial information of the subsidiaries is prepared for the same reporting period as that of the Group, using consistent accounting policies.

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the consolidated financial statements.

3. Earnings per Share

Basic and diluted earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Ordinary shares in issue during the period.

Although the Group reconstruction did not become unconditional until 4 March 2014, the consolidated financial statements are presented as if the Group structure has always been in place, including a share split effected by the Company on 26 May 2014 by which each of its Ordinary shares, with a par value of US$ 1.00 per share, was split into 10 Ordinary shares, with a par value of US$ 0.10 per share.

No adjustment has been made to the basic earnings per share in respect of a dilution as the impact of the warrants outstanding had an anti-dilutive effect on the basic earnings per share.

4. Notice of AGM and Posting of Accounts

The annual general meeting ("AGM") will be held at the conference room of Jiasen International Holdings Limited, 7th floor, Nanlian Industrial Park, Guanqiao Town, Nan'an City, Fujian Province, PRC 25 July 2016 at 16:30 pm (BST + 07.00).

The full version of the report and accounts for the year ended 31 December 2015 will be available shortly the Company's website http://www.jsih.net/ and notification of posting of the accounts, together with the Notice of AGM and the Form of Proxy, will shortly be sent to all shareholders.