Industry Overview

———————U ,; II 1, f) , I,~ ~ N([‘ , “,I,II,..C Board of Directors, Kanger International Berhad, 2-1, Jalan Sri Hartamas 8, Sri Hartamas, 50480 Kuala Lumpur, Malaysia
1 4 NDV 200 Dear Sirs, Executive Summary of the IndeDendent Market Research Report for the Wood Flooring Industry and Bamboo Flooring Market in China
This Executive Summary of the Independent Market Research Report for the Wood Flooring Industry and Bamboo Flooring Market in China is prepared by Protege Associates Sdn. Bhd. (“Protege Associates”) for inclusion in the Prospectus of Kanger International Berhad (“Kanger International” or “Company”) in relation to the listing of and quotation for its entire issued and paid-up share capital on the ACE Market of Bursa Malaysia Securities Berhad. CHINA ECONOMIC OVERVIEW The Chinese economy has continued on an expansion trail by registering another year of growth albeit at a more moderate pace in 2012. According to the National Bureau of Statistics of China, the country’s economy grew at a commendable rate of 7.7 percent year-on-year in 2012 despite weakened ‘global and domestic demand. The Implementation of plans and policies aimed at strengthening and improving the macro control had helped to maintain a steady development in the national economic performance. This latest economic expansion has also helped to cement China’s position as the world’s second largest economy after the United States (“US”). 7. INDUSTRY OVERVIEW (Conl’d)
Figure 1: Growth of China’s Real Gross Domestic Product (“GOP”), 2008­2012 12.0 10.4 9.6 “‘” ” ~ …… .c 8.0… 3:
0… ~ 6.0 a. Q ~ 4.0
;; Glc.: 2.0 0.0 2008 2009 2010 2011 2012 Year Source: NationalBureau ofStatisticsofChina Overall, China managed to register positive results across in key economic indicators. In the agriculture sector, the output of one of China’s key agricultural products namely grain, increased by 3.2 percent from 571.21 million tons in 2011 to 589.57 million tons in 2012. other major agricultural products such as cotton, oil-bearing crops, sugar crops, tobacco, tea, meat, eggs, milk and aquatic products have also registered growth in their production for 2012. Meanwhile, total value added of the industrial sector and construction industry grew by 7.9 and 9.3 percent year-on-year respectively in 2012. In terms of international trade, size of its imports and exports has expanded in 2012 as foreign trading activities with its major international trading partners gathered pace. The total vaiue of China’s foreign trade has increased by 6.2 percent to United States Dollar \,USD”) 3,866.8 billion in 2012. Overall, China’s trade surplus for 2012 was USD231.1 billion, a 49.0 percent increase from the preceding year. 7. INDUSTRY OVERVIEW (Cont’d)
Figure 2: China’s Foreign Trade, 2006-2012 791.5 969.0 1,760.5 956.1 1,220.5 2,176.6 1,132.6 1,430.7 2,563.3 1,005.9 1,201.6 2,207.5 1,394.8 1,577.9 2,972.7 1,743.5 1,898.6 3,642.1 1,817.8 2,048.9 3,866,8
Source: National Bureau ofStatisticsofChina The strengthening of the Chinese economy in 2012 has also been reflected in the country’s overall income and investment indicators. For example, the per capita disposable income of urban households rose by 12.6 percent to renminbi C’RMB”) 24,565 while the per capita net income of rural households grew by 13.5 percent to RMB7,917 in 2012. Figure 3: Per Capita Disposable Income of Urban Households and Per Capita Net Income of Rural Households in China, 2006-2012 2006 2007 2008 2009 2010 2011 2012  Per Capita Disposable Income of Urban Households 11,759 13,786 15,781 17,175 19,109 21,810 24,565  Per Capita Net Income of Rural Households 3,587 4,140 4,761 5,153 5,919 6,977 7,917
Source: National Bureau ofStatisticsofChina Meanwhile, investors remained bullish on the prospect of the Chinese economy. Investments have seen continued flowing into fixed assets in China, amounting to RMB37.47 trillion in 2012 or 20.3 percent year-on-year improvement from 2011. 7. INDUSTRY OVERVIEW (Cont’d)
Moving fOlWard, the Chinese Government is expected to continue prioritising the economic stability by promoting robust and steady economic development, keeping the price stable and maintaining the total money and credit supply at an appropriate level to cushion from financial risks. The Chinese Government is also expected to closely monitor the country’s inflation, local government debt level and specuiation in the property market. The International Monetary Fund (“IMFn ) has projected the Chinese’s real GDP to grow by 7.6 percent and 7.3 percent in 2013 and 2014 respectively.
OVERVIEW OF THE BAMBOO INDUSTRY IN CHINA The bamboo is primarily known to share common features with the grass family Gramineae (also known as Poaceae). It is a unique plant, with its tree-like appearance, but with distinct features of grass in external morphology of vegetative organs, structure of reproductive organs such as flower and fruit and in its process of growth and development. Globally, there are some 90 genera and 1,200 species of bamboo. Of these, China harbours around 39 genera and over 590 species in its natural bamboo forests. Moso bamboo is the most common species occurring in Chinese forests, and are mostly utilised as timber for application as building materials such as flooring, wood panelling, scaffolding. Figure 4: Bamboo Forests Makeup (Genera and Species)
Area: 5.38 million ha Genera: 39 Species: > 590
Meso Bamboo fmonopodiall • Area: 3.71 million ha • Proportion; 69,0% Other Bamboo • Area: 1.67 million h. • Proportion: 31.0% Note: ha denotes hectares Source: Independent Market Research (”IMR’j Report 7. INDUSTRY OVERVIEW (Cont’d)
In general, bamboo forests are distributed in the 27 provinces of China and can be partitioned into five regions/ geographical areas: (1) monopodial bamboo area in northern China; (2) mixed bamboo area south of the Yangtze River; (3) mountainous bamboo area in southwest China, with a predominance of mountainous monopodial bamboo; (4) sympodial bamboo area in south and southwest China; and (5) Hainan and Yunnan provinces, with several climbing sympodial bamboo species. In 2012, bamboo forests were estimated to span a total of 5.4 million hectares Cha”). Figure 5: Bamboo Forests Distribution in China
High mountainous balmboo'” region, Southwest China
tvionopodial ill. SyrnpGdi”f BaniL’lOo Reg!;)’;, south (>f Yangtze Ri,j(::;\’Sympodial bamboo region, Southwest China ilf Sympodial Bamboo ‘%r Regionr South Chin;) Climbing bamboo region, Hainan and Yunnan Provinces
Source: IMR Report
Bamboo Characteristics and Utility Figure 6: Bamboo and its Multifaceted Features and Utility Characti!ristics IAppl~~tion __ __ __
Fast-growing • Renewable source for any consumer or industrial application
• Suitable for reforestation efforts, i.e. to prevent/mitigate soil erosion or

• Under optimum landslides grow up to 46
conditions, can • Ideal as a carbon sink for carbon storage. Bamboo minimises carbon dioxide inches per day (4 (“CO”’) gas and generates up to more than 35 percent oxygen than equivalent feet) stand of trees. 1 hectare of bamboo sequesters 62 tons of CO’/year • Grows back after • Carbon content comprises usually about 50 percent of the total biomass where It is cut over 90% of bamboo carbon can be sequestered in durabie products such as boards, panels, fioors, furniture, buildings, cloth, paper and activated charcoal. (sinks carbon) • Eco-friendly • Suitable for sustainable and biodegradable products (i.e. laptop casings, automobile boards, paper, biomass fuel)
• These products have a very long life span and may retain carbon for several decades

.qghtl’ieight and fiexible; Extrem~ly suitable for construction of houses,Substitute for \,Voodand:Stesl ­..’partiGLilarly in quake-prone areas/countries ~!0.~I1y:barnbObhOU$esirnheviliage ofBelchuan situated in the.proVlnceof .§jchpan was hardly damaged inthe 1008 earthquake . ·”Relativeto wObd:l3aml)OO offers the possibility of annual selectiveharVesH”g a~dr~m?\lal ofabout 1’5-20 percent of the total stock without-damaging;the environmentand stock productivity Source: IMR Report Figure 7: A Snapshot of the Consumer and Industrial Applications Bamboo ,———————,E


:—-.;’iI . ‘,_, I,. ~ I “” ,. Idol , ‘0 I I:s! ,I ~ II ~
\J c ,——————–~.~ ~
Note: The figure above is not exhaustive due to the bamboos versatility in application. Source: IMR Report 7. INDUSTRY OVERVIEW (Conl’d)
Supply Analysis China is the largest bamboo industry in the world. It has been the catalyst for most of today’s known innovations in bamboo processing and usage, which accords with the expansion, development and productivity increase of its bamboo forests. Since the 1950s, the area designated for Moso bamboo (the predominant type of bamboo in China) of the Phyllostachys pubescens species (the most important species for modern bamboo applications) has more than doubled, from 1.5 million ha in 1957 to 5.0 million ha in 2007 through natural expansion and plantations. Positioning the bamboo industry amongst the wider forestry sector, bamboo products in the primary sector alone accounts for fractional share of 3 percent in 2012. This corresponds to a value of RMB122 billion in 2012 of the total forestry product market value of RMB3.95 trillion. Although its share is relatively small compared to other primary forest products, i.e. frUits, teas and other economic crops, the bamboo industry is a significant emerging non-timber forest product with substantial growth potential. Figure 8: Share of Bamboo Products in the Chinese Forestry Product Market by Output Value, 2012
• Primary Forestry
• Secondary Forestry Tertiary Forestry

Source: IMR Report 7. INDUSTRY OVERVIEW (Cont’d)
Figure 9: Production Value of the Bamboo Industry

[—-;5­I  I  ~  20  :0  ~  15  ~  ‘-‘  Cll  :::I  ~  10  ~  ….  :::I  Co  I  ~  o

Notes: For years 2008 to 201:!.-figures in RMB were converted to USD using the corresponding year December’s monthiy average. Source: IMR Report The production value of the bamboo industry charted a steady upward trend, with the exception of 2008’s output value of only USD3.65 billion. The low output in 2008 is attributed to the combined effects of the devastating 8.0-magnitude earthquake that hit Wenchuan county in the Sichuan province, as well as the snow and ice storms in May 2008. During these natural calamities, large tracts of bamboo forests were destroyed. Nevertheless, production resumed in 2009 to pre-disaster levels, charting an even higher value relative to the year 2007 of USD10.25 billion. The output value of the bamboo industry stood at USD19.63 billion in 2012. Demand Analvsis Demand conditions for the bamboo industry thus far projects an equally positive analysis. China’s population has long utilised the bamboo plant for food (bamboo shoots), bUilding materials for homes, scaffolding, furniture, household products such as mats and baskets, and other usages. While domestic demand remains robust, due to the abundance of bamboo resources and versatility in utilisation, export demand has been growing significantly, and is becoming an increasingly important driver for the local bamboo products industry. 7. INDUSTRY OVERVIEW (Collt’d)
Globally, China has an overall heavy hand as a net exporter of bamboo products. In 2011, the export value of Chinese bamboo products totalled USD1.04 billion. Strong foreign demand had propelled China to the forefront for almost every bamboo sub-segment, excluding the furniture and seat as well as the consumer goods (including kitchenware and utensils) sub­segments. At sub-segment level in 2012, bamboo flooring (assembled and non-assembled strips) fetched a total export value of USD332.8 million while bamboo shoots generated a total export value of USD240.9 million. Figure 10: Selected Top Performing Bamboo Sub-Segments by Value, 2012
HS2007 (Classification code) 440921  I i CategoryI • Bamboo flooring (parquet) including assembled and non assembled strips  j I :  •I Export value (USD) i I 332,818,525  ,200591  Bamboo shoots  ,  240;925;880 •  460211  Bamboo basketwork and others  204,091,689  4601’21  Bamboo matting and screens  105,932,339  460192  Bamboo plaiting products  65,030,482
Source: IMR Report Market Prospects and Outlook Given the industry’s growth and identified market drivers and risks, the bamboo industry is set to progress further in the near future. With the government’s support and international investment interest, industry players stand a good chance of growth if they fully utilise resources and funds available to them as well as work to resolve various inefficiencies and underlying issues within the industry’s value chain. In efforts to discover new product innovations and design, key industry players must be willing and committed to invest in the industry and related processing activities, in line with domestic and international bamboo associations’, the government’s and the academia’s research and development activities. The bamboo industry’s past performance reflected a steady upward growth despite turbulent economic crosswinds from the West. This signals a resilience that can be attributed to robust export demand amid trying times, but also to strengthening domestic demand for bamboo prodUcts. There is a reducing reliance on export demand for industry growth; the domestic 7. INDUSTRY OVERVIEW (Cont’d)
market is large and continues to grow along with its affluence and population size. This augurs positively for the industry and its investors. With all these conditions in place amid strong showing of past performance, the industry is expected to sustain its presence and growth in a dynamically-changing market.
THE WOOD FLOORING INDUSTRY IN CHINA Introduction Floorings are the built-in coverings applied over the surface of a floor area. They can be categorised into four major flooring materials which include soft coverings such as carpet and rugs, hard floorings such as ceramic tiles and marble, resiiient floorings such as vinyl and rubber, and wood floorings made from timber. In China, hard flooring takes up the largest market share amongst other flooring materials. The vast preference for hard floorings especially floor tiles has sustained due to its affordable price and easy installation. Nevertheless, wood floorings are gradually gaining popularity amongst consumers due to its abrasion resistance, foot comfort and natural aesthetic value. Figure 11: Market Share (Ufo) of Major Flooring Materials in China, 2005­2014e ,, !Flooring Material Hard Flooring  Wood Flooring  Soft Covering  Resilient Flooring
2005 92.7 5.7 1.4 0.2
Note: e denotes estimate Source: IMR Report Wood floorings are manufactured from timber; they can be categorised into solid wood flooring, engineered solid wood flooring, laminate wood flooring, bamboo flooring and cork flooring. Bamboo floorings are made from the wood-like fibres of bamboo plants, a member of the grass family; however, due to the similarity of its fibre material to that of wood, for the purpose of this report, it is recognised and considered a type of wood flooring. 7. INDUSTRY OVERVIEW (Cont’d)
Figure 12: Types of Wood Flooring Materials Wood Flooring ITypes of Material -~ Solid Wood Flooring Engineered Solid Wood Flooring Laminate Wood Flooring Bamboo Flooring Wood Timber The surface is made of solid wood timber and the substrate is solid plywood The surface is made of curing resin and the substrate is synthetic panei Bamboo plant
Bark of cork oak Cork Flooring Notes: 1) Surface refers to the face layer ofthe flooring thatis viSible when installed 2) Substrate refers to the layer spread underneath the surface layer.
Source: IMR Report Industry Performance of the Chinese Wood Flooring Industry Figure 13: Output and Sales Volume of the Wood Flooring Industry in China, 2008-2012
I Output VolumeYear 1 (Million square metres)  Sales Volume (Million square metres)  Z008  377.0  343.8  Z009  378.0  364.Z  Z010  479.0  398.5  ZOl1  6Z9.0  396.8  ZOlZ  679.0·  377.0
Note: e denotes estimate Source: IMR Report To date, wood flooring industry has grown to become a major industry in China with total output volume estimated to reach 679.0 million square metres in Z012..
Figure 14: Output Volume of China’s Wood Flooring Industry by Types of Flooring, 2011 Bamboo other Wood Flooring, 7.5% Note: Total percentage /5 not 100.0 percent due to round-offerror  Source: IMR Report  In 2012, sales volume of wood flooring products in China stood metres.  at 377.0 million square

Figure 15: Sales Volume of the Wood Flooring Industry in China by Types of Flooring, 2012 Bamboo l Flooring, 6.6% Solid Wood Flooring, 11.1%
Source: IMR Report In 2012, the overall sales volume of wood flooring in China was dampened by the slowdown in the pace of the economy and the tightening of regulatory policy on local real estate industry by the Chinese Government. The engineered wood flooring accounted for more than half (81.4 percent) of the sales volume of China’s wood flooring industry. Material stability, affordability and similarities to wood materials have helped the bamboo flooring market to sustain its market share. Moving forward, there are growing needs to drive innovation in order for the Chinese wood flooring industry to remain competitive. Issues involving legitimate timber are likely to be more compelling as the Japanese Government’s procurement law, American Lacey Act and European logging policy are expected to become stricter over time. The Chinese Government is expected to continue tightening regulations on real estate, hence possibly slowing down housing development and demand for wood flooring products. In addition, the wood flooring industry may also be challenged by the potential rise in prices of imported timber. 7. INDUSTRY OVERVIEW (Cont’d)

BAMBOO FLOORING MARKET IN CHINA Introduction Bamboo floorings are made from the lower culms of the bamboo plant. As a flooring material, It is a more environmentally friendly compared to solid wood flooring because it matures qUickly (about 5 years) and replenishes/ regrows much faster than any wood forest (about 20 to 30 years). This makes bamboo flooring a greener and more affordable alternative to solid wood flooring. Bamboo is naturally resistant to moisture; therefore, it is not susceptible to the expansion and contraction resulting from changes in its setting’s temperature and humidity, unlike solid wood flooring. Bamboo flooring is generally manufactured by pressing multiple layers of bamboo strips under high pressure and temperature thereby making it extremely hard and durable in addition to its attractive natural stain and moisture-resistance qualities. Besides its intrinsic values, bamboo flooring is also known for its aesthetic value; its appealing look captures the natural beauty of bamboo. Figure 16: Hardness of Bamboo against Other Wood


r::~ l••••••••••••••-1450 Bamboo ~•••••••••••• 1400 White ~•••••••••• 1360Oak White Ash

1150  1200  1250  1300  1350  1400  1450  1500  Janka HardnessTest  Note: Higher Janka hardness rating tr anslates to greater material hard ness  Source: IMR Report
Nevertheless, bamboo flooring has its drawbacks such as being prone to scratches and discoloration. Like any other hardwoods, hard force from sharp objects or heavy furniture will leave dents or scratches on the surface; direct exposure to sunlight will cause discoloration on the floor surface as well. Although in its most natural form, bamboo flooring is more resistant to water damage as compare to other hardwoods, prolonged exposure and excessive moisture will also cause the flooring to warp or grow mould. 105 7. INDUSTRY OVERVIEW (CoIlI’d)
Types of Bamboo Flooring Bamboo flooring can be classified into solid bamboo flooring, engineered bamboo flooring and strand woven bamboo flooring.
Source: IMR Report Engineered bamboo flooring is constructed with a combination of bamboo and wood. The wear layer of the flooring is made from bamboo board while the core and backing layers are made from other wood such as pine and poplar.
Source: IMR Report Strand woven bamboo flooring is made by splitting the bamboo culms and shredding it into individual strands. The strands are then boiled in a solution of water and boric acid to draw out the sugars in bamboos. After drying, the strands are compressed under intense pressure. 7. INDUSTRY OVERVIEW (Conl’d)

Figure 19: Strand Woven Bamboo Flooring
Source: IMR Report Market Dynamics Scorecard Figure 20: Market Dynamics Scorecard for the Bamboo Flooring Market Market Dynamics Indicators -­ I I I  Measurement  I  Trends  , , ,  2012 Market Size (RMB billion)  3.37  Increasing  20f3M~tket Growth Rate (%)  8.3  Increasing  ..  2017 Forecast Market Size (RMB billion)  5.04  Increasing  Forecast period Market CornpbuhdAnnual Growth Rate (WCAGR’)  8,4  – (2012 -2(17)(%)  Pricing Trends  Generally priced lower than other wood floorings excluding laminate wood flooring.  Price increase will likely stem from higher cost of raw materials, higher labour cost and inflation.  Types of Market Piayers  Approximateiy 200 market players  Increasing  2013 Demand Conditions  Driving the market  Sustained positive impact throughout forecast period.  2013 Supply Conditions  DriVing the market  Sustained positive impact throughout forecast period.  Threat of Substitution  High  Stable  Reliance on Imports  Low  Stable  Government Policy and Regulatory Stance  Pro-industry  Increasing
Source: IMR Report 7. INDUSTRY OVERVIEW (Conl’d)
Historical Market Perfonnance and Growth Forecast Historically, China’s bamboo flooring market has registered positive growth between 2009 and 2012. Although this growth has been on a slight declining trend, the bamboo flooring market has still managed to sustain its growth at 3.8 percent in 2011. Economic uncertainty following the recession in major export markets such as the U5 and Europe was a cause for weak global demand into 2010. The slight decline in growth in 2010 and 2011 was also a result of heightened regulations imposed on the property market by the Chinese Government which resuited in a slowdown in housing development and refurbishment activities, especially in higher-cost properties. Nevertheless, the market sustained positive growth mainly from encouraging growth in domestic demand. In 2012, the market continued to expand by registering an estimated growth of 5.9 percent mainly due to rising demand in the Northeast region in cities such as Beijing. Figure 21: Market Size and Growth Forecast for the Bamboo Flooring Market in China, 2008-2017
I Year I Market Size (RMB billion) I Growth Rate (0J0)I,  2008  2.63 2.88 3.06 3.18 3.37 3.65 3.98 4.31 4.66 5.04  – 2009  9.3  2010  6.3  2011  3.8  2012  5.9  2013  8.3  2014  9.1  2015  8.2  2016  8.2  2017  8.2
C4GR (2012-2017): 8.4 percent Note: AI! figures are rounded; the base year is 2012. Source: IMR Report Moving forward, the bamboo flooring market is forecast to exhibit stronger growth, with the CAGR for the 2012-2017 period estimated at 8.4 percent. The market is estimated to be valued at RMB5.04 billion in 2017. Overall, domestic demand is expected to carry greater weight as an increasingly important end user market of bamboo flooring. Domestically, demand will  likely be driven by greater affluence among  consumers  in China resulting in  17  108
increasing demand for higher quality and variety in products. It is also expected to be positively influenced by the extensive development in China’s construction industry as supported by the initiatives in China’s 12th Five-Year Plan, hence increasing demand for building materials. In addition, changing consumer preference for sustainable flooring material, both domestically and internationally, is also expected to bring about greater demand for bamboo flooring as a renewable and greener alternative material. Export demand is still expected to contribute substantial income to China’s bamboo flooring market, especially with the global economy expected to continue expanding. Competitive Analvsis Manufacturers of bamboo flooring are the primary participants in China’s bamboo flooring market. They are engaged in the processing of bamboo into usable flooring materials. There are approximately 200 bamboo manufacturers spread across the country, with a particular concentration in the Jiangxi, Zhejiang, FUjian, Hunan and Anhui provinces. These provinces are known to have an abundance of Moso bamboo forests, as well as keen interest in bamboo cultivation. Bamboo flooring market is a segment under wood flooring industry. It is relatively a new flooring material as compared to other materials such as solid wood flooring, engineered solid wood flooring and laminate wood flooring. At present, bamboo flooring market stands at the growth stage of its lifecycle. The number of bamboo flooring manufacturers is still considered small as compared to other more established wood flooring types in China. A majority of bamboo flooring manufacturers are long-established incumbent manufacturers of wood floorings. Equipped with existing technology for the production of wood-based flooring materials, financial resources, market experience, good brand equity and market reputation, these manufacturers possess a greater comparative advantage when venturing into the production of bamboo flooring as compared to new market players in the wood flooring industry. The result is a competitive landscape whereby there is an overlap between market players from different wood flooring markets and also a rise of manufacturers capable of offering a more comprehensive range of wood floorings. 7. INDUSTRY OVERVIEW (Cont’d) /.g. Figure 22: Core Wood Flooring Product Offering of Selected Market Players I Company Bamboo Flooring – Wood Flooring Produd:$ rEngi;;;~ -;-~;,;-;.-; 1; Solid Wood i d Wood: Wood : Flooring j Flooring I Flooring — Dasso Flooring Co., Ltd. (“Dasso’~  ~ ~ ~ ~  ~ ~ ‘.  ~  ~ ~ ~ ~ ~  ZheJiang AnJi Shanyou Bamboo & Wood Products Co., Ltd. (“Shanyou’~  ~  Kanger International and its subsidiary companies (“Kanger Group” or “Group’1  Jiangxi Kangda Bamboo· Products Group Co., Ltd. (“Kangda’~  ~  Jiangxi New Jingtai Industrial Co., Ltd. (“Jingtai’~  ~ ./ …•…. ~ ~  ~  Jiangxl Province PreciOus BambooDevelopment Co” Ltd. (“Province Development’~ .  ~  Huachang Bamboo Products (Jiangxi) Group Co., Ltd. (“Huachang’~  ~ ~ ~ .~  Jiangxi FeiyuBamboo Products Group Co., Ltd. (“Feiyu’~  Jiangxi Joveton Industry Co., Ltd. (“Joventon’~  ~ ~ ~ ~ ~ ~  ~ ~ ~ ~  Der International Home Furnishing Co., Ltd. (“Der’~  ~  Nature Flooring Holding Co., Ltd. (“Nature Flooring’~  ~  Power Dekor Group Co., Ltd. (“Power Dekor’~  ~  Zhejiang Tianzhen Bamboo and Wood Development Co” Ltd. (“Tianzhen’~  ~  Zhejiang Anji Tiancheng Flooring Co., Ltd. (“Tiancheng’~  ~

~ Note: v’Denotes flagship wood flooring product Source: IMR Report 19 7. INDUSTRY OVERVIEW (Collt’d)
Selected Market Players The list of these selected players is not exhaustive and each player’s product offerings may not exactly coincide with others’. Market players may participate in one or more markets. Figure 23: Selected Market Players in China’s Bamboo Flooring Market Company Name Details
Dasso Shanyou Kanger Group Kangda  • • • • • • • • • • • • • • • • • • • • • •  Established in 1992. Located in a village called Dazhuang, Zhejiang, China. Product offerings include bamboo indoor collection, bamboo outdoor collection, bamboo furniture materials and home furnishing. Products under bamboo indoor collection includes solid bamboo Aooring, engineered bamboo Aooring, strand woven bamboo Aooring and others. Awarded International Top Flooring Brand and The Most Innovative Green Flooring at the 11th DDMOTEX Show in 2009. Awarded Europarket Innovation Award: Design Category in 2010. Established in 2004, Locatedin Anji, Zhejiang, China. ManufacturesbamboofiocJring, ..bamb60<fUrniture,barriboo cr~fts and bamboo panels. . . Flooring products incl.ude solidbamboofiooring, engineered bamboo fiooring,strand wovenbamboofiobring and others. Exports its products to countries such as Japan, US, canada, Australia, Russia and Finland. Established in 2004. Located In Guangdong province, China. Manufactures and distributes wood and bamboo fittings, bamboo fiooring and laminate wood fiooring products. Focuses on using 5 to 6 years old Moso bamboo as raw materials. Brand name: Kanger (~!r), KAR Masterpiece. Exports mainly to Turkmenistan, United Arab Emirates, Hong Kong and Romania. Established in 1993. Headquartered in Fengxin, Jlangxi, China. Factory is situated close to Nanchang City, Jiangxi, China. Main products include solid bamboo fiooring, strand woven bamboo fiooring, laminate wood fiooring, engineered wood fiooring, bamboo furniture and others. Exports its products to countries such as US, Canada, South America, Eastern Europe and Southeast Asia.
Company Name __ _ L~etails __ _ Jingtai • Established in 1995. • Located In Nanchang, Jiangxi, China. • Manufactures wood and bamboo flooring including solid bamboo flooring, strand woven bamboo flooring and others. Province Development • Established in 199B.
• Located in Chongyi, Jiangxi, China.
• Manufactures bamboo flooring including solid bamboo flooring, strand woven bamboo flooring, bamboo furniture and others.
• Products. are exported to countries such as Japan, US, Austria,. Korea, Russia, Mexico, Ukraine, Canada, United Kingdom (“UK’) and Spain.

Huachang • Established in 1996. • Located in Fengxin, Jianxi, China. • Manufactures solid bamboo flooring, strand woven bamboo flooring, laminated wood flooring, furniture products and others.
• Brand name: Sinohcon.
• Exports its products to US, Spain, Germany, Russia, Ukraine, Romania, Australia and New Zealand.

Feiyu . • EStabliShed in 199B.
• ri1ain office is located in Fengxin, Jiangxi, China.
• ri1anufactures a variety of bamboo products including solid oamboo flooring, strand wOven bamboo flooring, bamooo. furniture and others.
• Brand name: Chunhong (~U).
• Exports to US, South America, Eastern Europe, Southeast Asia, Africa, Oceania, Eastern Asia, Western Europe and Middle East.

Joventon • Established In 2006. • Located in Nanchang, Jiangxi, China. • Manufactures bamboo flooring including solid bamboo flooring, and strand woven bamboo flooring products.
• Brand name: Jiu Mu Tang (:h.*”‘).
• Awarded ‘best product’ at the 6~ China Bamboo and Rattan Expo in 2011.

Der • Established in 2004.
• Located in Wujiang City, Jiangsu, China.
• Listed on the Shenzhen Stock Exchange in 2011.
• Manufactures a variety of flooring products (including bamboo flooring, laminate wood flooring, engineered wood flooring and solid wood flooring).
• Brand name: DER.
• Awarded as part of ‘China’s Top 100 Enterprises’ and ‘China Domestic Industry’s Most Influential Building Materials Brand’ in 2010.


Company Nam~ _IDetails _ __ ___ • Reported revenue and profit before tax of RMB423.8 million and RMB72.7 million respectively for its financial year ended 31 December 2012. 1———-+———————-­Nature Flooring • Established in 2001.
• Located in Foshan City, China.
• Listed on the Hong Kong Stock Exchange in May 2011.
• Products include laminate wood flooring, engineered wood flooring, solid wood flooring, bamboo flooring and cork flooring.

• Brand name: Nature. • Awarded the Chinese Brand of the Year, ranking first in the Wood Flooring Category, by the World Brand Laboratory in 2010.
• Reported revenue and profit after tax stood at RMB1.12 billion and RMB119.0 million respectively for its financial year ended 31 December 2012.

Power Dekor • Established in 1995.
• Located in T1anjlni Chiha.
• A;rl)~j<:lrente~prise that manufactures laminate wood flooring’ prgpu;ti:sin Chinp. Current products include solid wood flooring, ~DgiDeered;Wo6d:flooring, laminate wood flooring and others.

. Tianzhen • Established in 2003.
• Located at Anji, Zhejiang, China.
• Focuses on manufacturing various bamboo flooring products (engineered flooring, strand woven flooring, solid bamboo flooring).
• Also manufactures a selection of engineered wood flooring products.

• Exports to countries such as US, Europe, Canada, Korea, Japan and Australia. Tiancheng • Started producing bamboo flooring since 1992.
• Anji, Zhejiang, China.
• Specialises in bamboo products including engineered bamboo flooring, indoor decorative items and furniture.
• Exports to countries especially US and Europe.

Source: IMR Report
Market Share Analysis Kanger Group garnered revenue of RMB78.7 million in 2.012. from the manufacture and sale of bamboo flooring products, equivalent to 2..3 percent share of the bamboo flooring market during the year, as illustrated in Figure 2.4. Market share is based on market revenue of RMB3.37 billion in 2.012.. Figure 24: Kanger Group’s Bamboo Flooring Market Share, 2012 Kanger Group, 2.3% —-_._——–_._._———–~ Source: IMR Report 7. INDUSTRY OVERVIEW (Conl’d)
Demand and Supply Conditions Figure 25: Demand and Supply Conditions Affecting the Bamboo Flooring Market, 2013 Demand Conditions Sustained Growth in the Chinese Economy Leading to More Affluent Consumers • Sustained Growth in Chilla’s Property Construction and Real Estate Market • Changing Consumer Pl’eference in Favour of Sustainable Flooring Material Improving Chinese Bamboo Flooring ExportConsumer Concern Regarding Formaldehyde Emissions in Bamboo Flooring • •
Impact on Market Size and
Strong Governmental Support for the Bamboo Industry • Increasing Bamboo Plantation Mea in China • Increasing Number of Bamboo Flooring Manufacturers Supply Conditions Source: IMR Report Demand Conditions The following factors represent key trends, developments and events influencing market demand:­1) Sustained Growth in the Chinese Economy Leading to More Affluent Consumers The sustained economic growth experienced by China over the past decade has led to the emergence of increasingly affluent consumers in China. In 2008, the global financial crisis affected many countries’ economies adversely; however, China managed to sustain its economic growth momentum. Despite a slight moderation in growth rates, China’s economy is expected to grow encouragingly on the back of strong domestic demand. China’s industrialisation and urbanisation has brought its rural citizens to urban areas to take on higher-value jobs in the city which command higher income. The migration of the Chinese population from the low income strata to the middle and high income strata has instigated greater purchasing power and a growing affluence among the Chinese. 7. INDUSTRY OVERVIEW (Cont’d)
Figure 26: Per Capita Disposable Income of Urban Households and Per Capita Net Income of Rural Households in China, 2008-2012 25,000 20,000 III 15,000 ::E
c.:: 10,000 5,000 0
Year Per Capita Disposable Income of Urban Households .. Per Capita Net Income of Rural Households ,__–__—————_._–­
Source: IMR Report With higher spending power, consumers possess more readiness and ability to spend on building and refurbishing areas for greater comfort and pleasure. Bamboo flooring is considered a high-quality flooring product; it is extremely hard, durable and non-susceptible to changes in room’s humidity and temperature. Hence, in tandem with greater affluence and propensity to enhance individual lifestyles amongst Chinese consumers, demand for bamboo flooring as a quality product is likely to increase alongside this trend. 2) Sustained Growth in China’s Property Construction and Real Estate Market China’s construction industry has been one of the driving forces behind the nation’s economic growth ever since it was targeted as one of the cornerstones of China’s plan for modernisation. Figure 27: Gross Output Value of Construction in China, 2010-2012 I Gross Output Value (RMB I I , Year Growth Rate (Ofo)I 100 million) I.I. ­1 96,031.132010 25.0 2011 117,059.65 21.9 2012 137,217.86 17.2 7. INDUSTRY OVERVIEW (Collt’d)
Source: IMR Report The construction industry has remained as one of China’s main economic drivers. The industry will likely continue to face positive growth over the long term underpinned by China’s plan for national economic and social development layout in its 12th Five-Year Plan (2011­2015). In addition, urbanisation continues to cause gradual shifts in the lifestyle of China’s population; a shift that is expected to contribute to the rising development in the construction industry to cater to the growing, and migrating population. As such the bamboo flooring market Is expected to grow over the forecast period. 3) Changing Consumer Preference in Favour of Sustainabie Flooring Material Over the years, the growing awareness of the benefits and aesthetic value of bamboo flooring has resulted in bamboo flooring becoming one of the trending choices in the flooring material industry both domestically and abroad. Made from an easily renewable material, bamboo flooring is a greener alternative to other form of wood floorings, making it a highly acceptabie product by present society whose prevailing concerns include environmental sustainability. It is anticipated that the increasing awareness of the benefits and favour for bamboo as a renewable source and substitute for other wood species will result in greater demand for bamboo flooring. 4) Improving Chinese Bamboo Flooring Exports China mainly exports its bamboo flooring to USA, Canada, Australia, Europe and countries in the Southeast Asia. Figure 28: China Export of Bamboo Flooring, 2008-2012
Year I  ExportValue (USD) ,  Growth(%)  2008  329,340,450  21.7  2009  224,345,988  (31.9)  2010  221,577,638  (1.2)  2011  252,762,309  14.1  2012  332,818,525  31.7
Note: Data only includes bamboo flooring (parquet) including assembled andnon assembledstrips Source: IMR Report 7. INDUSTRY OVERVIEW (Cont’d)
In 2009, there was a significant decrease (31.9 percent) of bamboo flooring products. The global crisis in 2008 affected many countries’ economies and impacted the construction industry adversely, hence contracting export demand for bamboo flooring in 2009. Economic uncertainty folloWing the recession in major export markets such as the US and Europe was a cause for weak global demand into 2010. The demand for China’s bamboo flooring has since improved with the recovery of global economy. The export value of the said product increased by 31.7 percent in 2012. The export value of bamboo flooring is expected to continue improving during the forecast period. 5) Consumer Concern Regarding Formaidehyde Emissions in Bamboo Flooring Formaldehyde is a chemical compound that occurs naturally and is synthesised for industrial used. There are issues concerning the used of urea-formaldehyde resins as bonding adhesives for the production of bamboo flooring. The World Health Organisation C’WHO”) classified formaldehyde as a probable carcinogenic to humans. As a result, indoor air quality and formaldehyde emissions from bamboo flooring became a public and governmental concern. In an effort to meet the demand and standards for low formaldehyde emission of bamboo flooring, manufacturers have successfully found ways to reduce formaldehyde release in their prodUcts. This is achieved by using new formulation of urea-formaldehyde resins, alternative glUing systems or using resins based on biomass products. There is however still a risk of errant manufacturers( manufacturing processes which may lead to consumer concern and hesitation in purchasing and using bamboo flooring products. Supply Conditions The follOWing factors represent key trends, developments and events influencing market supply:­1) Strong Governmental Support for the Bamboo Industry The Chinese Government strongly supports the development of its bamboo industry which has grown to become one of the pillar sectors in the country’s forestry industry. In these regard, the Chinese Government is encouraging the optimisation of the use of its forestry resources, and at the same time protecting these resources, improving ecological balance, boosting economic developing in rural areas and increasing farmers’ incomes. One of the government’s notable efforts to develop China’s bamboo industry is seen in the establishment of The Home of Bamboo in China initiative -an on-going policy to develop several bamboo 7. INDUSTRY OVERVIEW (ConCd)
plantations, forestry and industry clusters in selected counties and provinces with abundant, natural bamboo resources. The government’s strong support across the bamboo industry’s value chain -from the upstream cuitivatlon and harvest of bamboo plants, as wei! as the downstream processing industry is expected to have an enduring positive effect on the bamboo flooring market. 2) Increasing Bamboo Plantation Area in China The total area of bamboo forests in China was apprOXimately 5.4 million ha in 2012. It is estimated that bamboo plantation increases 100,000 ha annuai!y. The annual increment in bamboo plantation is presently encouraged by continuous deforestation. Diminishing resources and availability of forest resources has created public awareness for forest protection as well as the need to identify viable substitutes for traditional wood timber. Faced with demand for forest products by a huge and growing population, China is turning to non­timber forest products, particularly bamboo, as a potential alternative. China’s abundant and increasing bamboo resources are undoubtedly the basis for groWing steady supply of raw materials for the bamboo flooring industry. Bamboo forest area in China is expected to only increase in the future; hence, the supply of raw material for the production of bamboo flooring is likely to be sustained moving forward. 3) Increasing Number of Bamboo Flooring Manufacturers In tandem with the growing popularity of bamboo flooring, the number of bamboo flooring manufacturers is also increasing. These market players are either new entrants or existing wood flooring manufacturers venturing into bamboo flooring to expand its product portfolio. At present, there are approximately 200 bamboo flooring manufacturers in China. The growing demand for bamboo flooring both locai!y and abroad has attracted many new and eXisting players to actively participate in the market. In view of this, China’s bamboo flooring production capacity and the supply of bamboo flooring will likely increase accordingly. Substitute Products Bamboo flooring products can be substituted with a variety of other flooring materials. Wood flooring variants are considered the best substitutes to bamboo flooring as they share many aesthetic and functional  similarities  to  bamboo.  Bamboo flooring is  a  relatively new,  but  rapidly  growing  sub-segment  within  the  wood  flooring  product  category.  Product  28  ]]9
development are rendering bamboo fiooring as an increasingly close substitutes to solid wood, engineered solid wood, laminate and cork flooring. Figure  29: Advantages  and  Disadvantages  of  Various  Wood  Flooring  Variants  -­ —-­ – —or  -­ -­ WoodFlooring Type  Ad tavan ges  iI  D” dIsa vantages
Bamboo  • • •  Good heat insulation Uniformity in colour Minimai shrinkage  • •  Less durable than solid wood, ca n be brittle Material discolour over time  •  Varied design and colours through new and innovative  processes  •  Environmentally friendly due to the rapid growth of bamboo  Solid Wood  .  • • • • .  Durable Eco-friendly Heat insulation Natural .aesthetic feel  value  and  • •  Requires very loW-humidity environme.nts Vulnerability toatid,alkali,iire andt6rroSion …  Engineered Wood  Solid  “Durable, wood-resource efficient, heat-insulating, and aesthetics of solid wood “High precision-processed, clean surfaces  ” ”  Wear resistance is low compared to laminate fiooring Greater processing involves the use of chemicals that are not eco-friendly  • •  Stable structure More resistant to damage and wear than solid wood  •  More prone to induced warping wood  humidity­than solid  ”  Ease of maintenance  Laminate Wood  •  High wear resistance  •  Cannot  be  re-finished  upon  • • •  Does not warp{ deform easily Diverse styles and colours, many to emulate the look of solid wood Resistant to damage from corrosion, acid/ alkali, and moisture  • •  wear Poorer foot feeling due to higher density than solid wood Less eco-friendly, due to the high use of adhesives during processing  Cork Flooring  • • • •  Flexible & elastic Eco-friendly Moisture-proof Natural anti-allergenic, anti­bacterial and anti-microbial  • • •  Little ventilation, contributes to heat Limited colour options Must be sealed every 5 years to retain moisture resistance
Source: IMR Report 7. INDUSTRY OVERVIEW (Cont’d)
Other flooring types such as soft coverings (carpeting), stone and tile hard floorings, resilient floorings and others are also viable substitutes. Substitution and preference across various flooring materials are based on aesthetic factors e.g. the colour, look, and feel of the floor covering, functional factors e.g. the hardness, durability, traction and insulation provided by the material, as well as price/ cost requirements. Market’s Reliance and Vulnerability to Imports China is home to a total of 39 genera and over 590 species of bamboo, making it the country with the most diverse bamboo resources in the world. ApprOXimately 95 percent and 90 percent of bamboo genera and species respectively are native to China. Of these species, there are more than 100 bamboo species which are economically valuable, which includes Moso bamboo used to produce bamboo flooring. As of 2012, China has an estimated 5.4 million ha of bamboo forests. Given the consistent abundance of China’s bamboo forest tracts, in comparison with the rest of the world, it is unlikely for China’s bamboo flooring industry to depend on imported raw materials. China is the foremost manufacturer of bamboo products in the world, exceeding RMB71 billion in 2009. This includes bamboo flooring products. China’s bamboo products industry, including the bamboo flooring industry is highly export oriented (export value accounts for approximately half of local bamboo flooring output), as it produces in vast quantities exceeding domestic demand. With a firm grip on the majority of global bamboo raw material resources, as well as bamboo product manufacturing, the local market is unlikely to depend on imported bamboo flooring products in the foreseeable future. Relevant Government Regulations and Policies The bamboo flooring industry, as well as the upstream forestry of bamboo materials falls under the purview of China’s State Forestry Administration, an agency directly under the State Council of China. Since the 1980s, the Chinese Government has viewed bamboo materials and the resulting industry as an increasingly important sector for economic development. To reflect this interest, a number of policies facilitating industry growth have been introduced. Simultaneously, the government has put in place various laws and agencies to help regulate as well as sustainably promote the industry. 30 7. INDUSTRY OVERVIEW (Collt’d)
1988 PRe Forest Law The 1988 PRC Forest Law and its implementing rules constitute the major regulations governing the plantation, harvest and utilisation of forestry iand in China. Under the PRC Forest Law, the cutting down of bamboo can be carried out only with a cutting licence. Under the PRC Forest law’s implementation rules, the transportation of bamboo from forestry land can only be carried out with a transportation permit. Applications for the permit are filed with the forestry bureau at county ievel or above. Policies Affecting the Bamboo Flooring Market Home ofBamboo in China Initiative The ‘Home of Bamboo in China’ initiative is an on-going policy to develop several bamboo plantations, forestry and industry clusters in counties and provinces with abundant, naturally occurring bamboo resources. The initiative, formuiated In 1996 by the State Forestry Administration selected 10 counties where bamboo was abundant for bamboo forestry and industry development. Counties include Anji, Lin’an (Zhejiang Province), Jian’ou, Shunchang (Fujian Province), Taojiang (Hunan Province), Yifeng, Chongyi (Jiangxi Province), Guangning (Guangdong Province), Guangde (Anhui Province) and Chishui City (Guizhou Province).
Service Specifications ofChinese Flooring Industry In April 2011, the Flooring Committee under China National Forest Product Industry Association published development and compliance standards for the entire wood flooring industry, including the bamboo flooring industry. The set of standards outlines industry best practices for wood flooring manufacturers to follow in order to strengthen their product and service viability in both local and export markets.
Wood Identification Guide -Flooring The Wood Identification Guide is a broad catalogue and information compendium for various wood flooring products manufactured in China. The guide was intended to enable better-informed customers to act as a watchdog for the industry, thus ensuring that market players produce flooring products that are of highest standards. 7. INDUSTRY OVERVIEW (Cont’d)

The Wood Building Materials to the Countryside Initiative In August 2010, the government initiated the ‘Wood Building Materials to the Countryside Initiative’ to encourage domestic consumption of forestry products. During the campaign, 14 enterprises sold their wood flooring (including bamboo) and doors to rural consumers in 12 pilot provinces at a 15 percent discount. During the campaign that lasted until January 2011, the pilot enterprises achieved total sales of RMB373.3 million, while consumers received discounts amounting to RMB65.2 million. Policies Affecting Upstream Bamboo Activities
Opening Up the Bamboo Industry to Industry Forces Beginning in 1985, the Chinese Government Iiberai/sed bamboo prices to better reflect market value, thus providing greater incentive for bamboo plantation and forestry. The Chinese Government continues to maintain its stance in liberalising the bamboo market as part of its policy to promote plantation and forestry activity.
Financial Incentives for Replanting Under China’s Twelfth Five Year Economic Development Plan, the government has targeted to achieve a bamboo forest area of 5 million ha during the plan period. In 2011, China’s Ministry of finance also incentivised bamboo replanting through financial subsidies of RMB1,500 per hectare of bamboo replanted. Policies Affecti ng Trade
Tax Rate Policy on the Wood Flooring Industry On 1 November 2006, the Chinese Government promulgated a policy to adjust the provisional import and export tariff rates on selected commodities. A tariff of 10 percent was imposed on the export of solid wood flooring; meanwhile, engineered solid wood flooring and laminate flooring and bamboo flooring were exempted. On 1 July 2007, the Chinese Government abrogated export tax rebates namely value added tax C’VAT”) and goods and services tax C’GST”) for engineered solid wood flooring. Meanwhile, export rebate for laminate wood flooring, multi-layer engineered flooring and bamboo flooring was reduced from 11 percent to 5 percent. 7. INDUSTRY OVERVIEW (Cont’d)
Simultaneously, the government increased VAT rebates for bamboo products from 5 to 9 percent. This promotes the trade of bamboo flooring products both directly ­through the reduction of bamboo flooring export costs -and indirectly through the increase in export prices of other wood flooring products.
Coordinated National Research and Development To reflect the commitment of the Chinese Government in developing bamboo utility and the industry, the China National Bamboo Research Centre was established in 1986 Within the purview of the Ministry of Science and Technology as well as the Central Organising Committee Office, with a three-pronged objective. The objectives are towards concerted R&D activities, international knowledge sharing and training, and greater bamboo industrialisation. Outlook of the Bamboo Flooring Market in China The outlook of the bamboo flooring market in China is projected to be positive; the market is expected to grow during the forecast from 2013 to 2017. Growth in the said market is likely to derive from domestic and international demand. Over the years, China’s strong economic growth has led to increasingly affluent consumers who now have the purchasing power as well as the Willingness to pay to enhance individual lifestyles for greater comfort and pleasure. The modernisation and urbanisation of the country has also caused a growth in the China’s property construction industry, an industry that the bamboo flooring market is dependent on for the consumption of its products. China’s initiatives of development its western region and the construction of 36 million affordable houses as stated in its 12th Five­Year Plan (2011-2015) is enVisaged to uphold performance of the construction industry which is expected to positively affect the bamboo flooring market. On the global frontier, consumers are becoming more aware of the importance of protecting the environment. In tandem with the growing awareness of the benefits and aesthetic value of bamboo, bamboo flooring has become one of the trending choices in the flooring material industry as a greener and more sustainable material. This is likely to increase demand for Chinese bamboo flooring, especially among advanced societies where environmental concern is more mature. Despite its advantages as a natural plant material, the manufacturing of bamboo flooring is occasionally criticised as being hazardous to consumer’s health due to its use or urea­formaldehyde resins as a bonding adhesive. Manufacturers have found ways to reduce 7. INDUSTRY OVERVIEW (Coltt’d)
formaldehyde emission in their products to ensure their products meet leading standards on formaldehyde emissions of both local and export markets. On the supply side, the bamboo flooring market will Iikeiy be positively impacted by China’s Government support for the growth of the bamboo industry. As an environmentally friendly plant, the government is strongly supporting bamboo planting as a means for the country to reduce its carbon dioxide emissions. One of the highlights of the government’s interest in developing the bamboo industry is The’ Home of Bamboo in China’ initiatives. These initiatives, along with the economic viability of bamboo plantation and processing have resulted in China’s bamboo forest area expanding at an estimated annual rate of 100,000 ha. While the bamboo flooring industry has great potential to grow, it will constantly be threatened by the ease of being substituted by other wood floorings (solid wood, engineered wood, laminated wood and cork), hard floorings, soft coverings and resilient floorings. China’s bamboo flooring market is valued at RMB3.37 billion in 2012 and is expected to grow at a CAGR of 8.4 percent for the 2012-2017 period to RMBS.04 billion in 2017. Protege Associates has prepared this report in an independent and objective manner and has taken adequate care to ensure the accuracy and completeness of the report. We believe that this report presents a true and fair view of the industry within the boundaries and limitations of secondary statistics, primary research and continued industry movements. Our research has been conducted to present a view of the overall industry and may not necessarily reflect the performance of individual companies in this industry. We are not responsible for the decisions and! or actions of the readers of this report. This report should also not be considered as a recommendation to buy or not to buy the shares of any company or companies. Thank you.
Managing Director Protege Associates Sdn. Bhd.




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