Infinity Chemical Announced Annual Results 2010 Recorded Stable Business Growth

Consolidate Market Position

Actively Expand into Overseas Market

HONG KONG, Dec. 29, 2010 /PRNewswire-Asia/ --

Financial Highlights

Infinity Chemical Holdings Company Limited ("Infinity Chemical" or the "Company", together with its subsidiaries, the "Group", HKEx Stock Code: 640), a leading manufacturer of chemical products specialized in footwear adhesive industry, announced its annual results for the year ended 30 September 2010 (the "year under review").

During the year under review, the Group's turnover amounted to HK$296,040,000, representing an increase of approximately 10.6% year-on-year. The increase was principally due to the increase in sales by 22.5% year-on-year to HK$117,039,000 in Vietnam region and the additional sales amounting to HK$13,868,000 brought by the Group's new product, vulcanized shoes adhesive related products. The Group's gross profit increased by 16.8% year-on-year to HK$76,000,000. Gross profit margin increased by 1.3 percentage points to 25.7%. Such increase was mainly due to the launch of new products during the year under review -- vulcanized shoes adhesive related products, which has a higher profit margin. The Group also successfully expanded its distribution network into Indonesia and Bangladesh markets.

As the Group has incurred non-recurring listing related expenses of HK$19,863,000 during the year under review, the profit attributable to equity holders of the Company decreased by approximately 47.7% to HK$16,065,000 in 2010. If these non-recurring listing related expenses were excluded, the profit attributable to equity holders of the Company increased by 17.0% year-on-year to HK$35,928,000. The Board recommended the payment of a final dividend of HK1.8 cents per share for the year ended 30 September 2010.

Commenting on the Group's results during the year under review, Mr. Ip Chin Wing, the Group's Executive Director and Deputy General Manager, said, "The Group has been striving for business expansion and product enhancement during the year under review. We achieved satisfactory results and received well recognition from our customers and the mass market. During the year under review, our Group was honored a number of enterprise awards which included 'The Hong Kong Outstanding Enterprises 2010' by Economic Digest Magazine; the 'Top 100 PRC Enterprises in Proprietary Innovations Award' by 'Chinese Association of Productivity Science'; and the 'Rainforest Security Interest Award' by Rainforest Forever Organization. These awards marked our success and market recognition in business development, product innovation as well as environmental protection."

During the year under review, the Group was engaged by a reputable international brand to supply its products and services to their Indonesian plant. Meanwhile, the Group has also established a local marketing and technical service team with supplies of shoe adhesives to local customers through the bonded warehouse. Also, a local marketing and technical service team has been established in Bangladesh. Supply of shoes adhesives to local customers through direct imports from China has commenced. On the other hand, the Group reported a higher market share in Vietnam in the year under review, coupled with a 22.5% growth to HK$117,039,000 in sales as compared to the previous financial year.

The Group's planning for the construction of new plants is in progress. Its new plant in Bangladesh is under construction and the completion is scheduled in August 2011. For the new plant in Nansha, Guangzhou, the PRC, construction has been affected by restrictions imposed in connection with the Guangzhou Asian Games. Trial production of the plant is scheduled in August 2011. In line with the original plan, the construction of the new plant in Vietnam will commence following the completion of new plants in Guangzhou and Bangladesh.

Looking forward, Mr. Ip said, "Although 2011 will be a year full of challenges and opportunities, we are optimistic about the growth of our financial results in the coming year. Continued growth in global demand for footwear, rising stringent demand for quality adhesion by manufacturers, rapid increase in demand for use of environment-friendly water-based adhesive products by footwear brands and manufacturers, as well as ongoing diversion to low-cost countries or regions in footwear manufacturing industry altogether create business opportunities for vulcanized shoes adhesives industry and chemical products, so as the Group. We will allocate more resources to expedite and enhance marketing efforts to promote our range of vulcanized shoes adhesive related products, which currently occupy a leading market position. In the meantime, we will continue to expand our sales and distribution network in China, with an aim to increase our domestic sales to capture additional market shares. As stable growth in sales of traditional shoe-making adhesive products from new footwear manufacturing bases in Asia is expected in the coming year, we are confident in bringing favorable return to our shareholders and investors."

About Infinity Chemical Holdings Company Limited

Infinity Chemical is engaged in the production, sale and development of adhesives and primers and the distribution of hardeners, which are widely used by the Group's customers in the process of footwear manufacturing. With headquarters in Macau, the Group had two production plants in mainland China, one in Zhongshan and one in Zhuhai, and also one production plant in Vietnam. The Group markets and sells its adhesive and primer under its own brand "Zhongbu". The Group is also an exclusive distributor of a series of German hardener products namely "IRODUR" in Hong Kong, Macau, mainland China, Taiwan and Vietnam. To become the first mover in market of high quality products with environmental friendly character, the Group has successfully developed series of water-based adhesive products for vulcanized shoes in early 2009.

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