Since the successful launch of the uniform microfibre synthetic shoe leather in September 2006, the Group acquired a contract with a major distributor that ensured a significant take-up of the microfibre leather capacity. The Group is now focusing on opening the microfibre fashion leather market, in addition to microfibre leather markets for furniture upholstery and carrywear.

Fashion samples have been distributed to potential customers and their feedback has been good. Orders for microfibre fashion leather were expected in the second quarter of 2007, which will contribute significantly to the Group’s growth for the year. This will also determine further expansion plans for sea-island short fibre and microfibre leather production capacities.

Expansion works for bi-component long fibres (nylon-polyester fibre and core-sheath fibre) are well underway. The new production capacity of 10,000 tonnes per annum is expected to be operational by second quarter of 2007, with a further expansion of production capacity of 40,000 tonnes per annum, planned in the coming three years. New land was also purchased in preparation for increasing microfibre leather production capacities.

Barring unforeseen circumstances, the Group is optimistic of achieving further growth in 2007.