The reduction of levy tariffs on 1 May had a negative impact on local production in the initial period until consumers became accustomed to the new price positions in the market place.

The Board of Directors expect the second half of the results of the financial year to 31 January 2005 to be an improvement over the same period last year due to the increase of the Group’s business in the importation sector which is less seasonal than that of the Group’s traditional business.