The board of directors of Chen Hsong Holdings Limited announced that the group is expected to record a 12% decline in turnover and a decrease in net profit (before foreign exchange impacts) of around 50% for the six months ended 30 September 2014 as compared with the same period of last year. The percentage of decrease in net profit will enlarge due to the lack of foreign exchange gains on the sizable appreciation of the Renminbi experienced in the same period of last year. The decrease in turnover was due to the weakened China market, arising mainly from liquidity tightness in the economy and continued slowdown in the manufacturing sector.

The Group's gross margin declined due to downwards adjustment in production volume which led to higher sharing of fixed costs.