Cheung Woh Techs : Impact Of Flooding In Thailand

The Board of Directors of Cheung Woh Technologies Ltd (the "Company" or together with its subsidiaries, the "Group") would like to update shareholders on the impact of the recent floods in Thailand on the Group's operations.
While the Group does not have physical operations in Thailand, several major customers of the Group's HDD component segment have suspended operations in Thailand as a result of the severe floods affecting their facilities. Besides that, the customers' supply chain is interrupted as many component suppliers are located at the affected area.
As a result, we expect the revenue of HDD component segment to decline and consequently, this segment is expected to report losses in the third and fourth quarter for financial year ending
28 February 2012.
For Precision Metal Stamping component segment, one of our main customers who supplies car audio system to automotive manufacturers located in Thailand is also affected by the floods. However, barring any unforeseen circumstances, we expect this segment to continue to be profitable in the third and fourth quarter.
The Company will continue to update shareholders on any material development in relation to the above.
On behalf of the Board
Law Yu Chui
Director
25 October 2011