COMPANY INFORMATION

Greenfield Chemical Holdings Limited Internet Services

Business Summary: The Group is principally engaged in manufacturing and trading of liquid coatings, powder coatings and solvents. Business Review: The expansionary monetary policies and various stimulus plans introduced by worldwide governments in the second half of 2009 significantly enhanced market liquidity and investors' confidence. Hence, the demand for paints and petrochemical and related products increased as compared to first half of 2009. For the six months ended 30th June, 2010, the Group achieved a moderate increase of 9.60% to HK$142,299,000 (2009: HK$129,830,000) in turnover. In light of implementation of tighter cost control by the management, the gross profit increased slightly by 4.36% to HK$39,277,000 (2009: HK$37,635,000). Combined with the increase in share of profits of associates, the profit for the period attributable to shareholders substantially increased by 34.12% to HK$26,371,000 (2009: HK$19,661,000). Prospects: In view of the escalating awareness of more stringent environmental protection and product safety laws and regulations pertaining to the Group's manufacturing facilities and products in PRC as well as increase in price of crude oil, other key raw materials and labour cost, the business environment in the second half of 2010 remains to be challenging. In response, the management has commenced a review on the existing businesses in manufacturing of paints and trading in petrochemical and related products and assets of the Group, for the purpose of formulating new business plans and strategies for the future business development of the Group. Subject to the result of review and should any suitable business opportunity arise, the Group may change its existing business activities and redeploy any assets of the Group. The management will from time to time seek for investment opportunity in promising industry that could provide investment potential and broaden the income base of the Group.