RMB155.1 million

�� Orders are expected to be delivered by the end of December 2009

�� Awarded the Leader in Handicrafts and Home Furnishing Industry in Fujian Province

SINGAPORE – 12 October 2009 – Passion Holdings Limited

or together with its subsidiaries, the “

wide range of handicrafts and furnishings, today announced a healthy set of order books as at 30

September 2009.

The Fujian-based Group, which listed on the mainboard of the Singapore Exchange on 2

September 2009, has received orders amounting to RMB155.1 million, a 28% increase from the

RMB121.2 million orders received in the corresponding quarter ended 30 September 2008. The

Group expects the orders to be delivered in its second financial quarter ending 31 December 2009

(“2Q 2010”).

“We continue to see robust demand for our handicrafts and furnishing products in both overseas

and local markets. Our established ‘Passion’ brand name and foothold in the medium and high-end

overseas markets has provided a platform for growth within the PRC market. We anticipate the

PRC market will be our main growth driver in the short to medium term,” elaborated Ms Chen

Huiling, founder and Executive Chairman of the Group.派森控股有限公司 (“Passion”Group”), an integrated designer, producer and retailer of a

Passion Holdings Limited

Page 2 of 3

The Group’s recent listing raised estimated net proceeds of approximately S$18.6 million, which

the Group intends to use for the expansion of its production capacity and sales and distribution

network within the PRC, as well as for the strengthening of its ‘Passion’ brand name in the PRC.

“We have been actively executing our business strategies, particularly in the PRC. Our immediate

focus is to appoint additional distributors in big cities such as Shanghai, Beijing, Guangzhou,

Dalian, Qingdao and Xiamen. Together with our local distributors, we plan to set up additional

Passion Art specialty stores in the PRC,” added Ms Chen.

To further enhance its brand name and build stronger brand loyalty, the Group is also working

towards launching extensive brand-driven and customer-centric advertising, such as advertising in

magazines, billboards, static or scrolling panels, posters and brochures.

Most recently, the Group’s wholly-owned subsidiary, Yirong Arts and Crafts Co., Limited, was

accorded the coveted “Leading Company in the Handicrafts and Home Furnishing Industry” award

(

On the receipt of this award, Ms Chen said, “We are gratified to receive this accolade, which was

given in recognition of our Group’s reputation, product quality and large-scale operations. Given

that the developing handicrafts and furnishings industry in the PRC has no dominant industry

leaders to-date, and that we are one of the leading integrated players in the market, we believe

there are immense growth opportunities for us.”

With the continued economic and social development of the PRC, the Group believes that the

sophisticated and discerning middle class consumers will purchase handicrafts and furnishings that

suit their preferences and better reflect their lifestyles. Coupled with the new concept of ‘less

renovation, more decoration’ promoted by the interior design industry, the Group has also

witnessed an increase in the use of decorative handicrafts and furnishings to create a cozy and

homely atmosphere in homes.

“We believe the rapid urbanisation and the continuous growth of the PRC population, as well as

the redevelopment of traditional urban areas, will spur demand for our products in the PRC. In

similar fashion, we expect the handicrafts and furnishings industries in the European Union, the

Middle East and the USA to continue to grow in the medium term,” concluded Ms Chen.福建省装饰品龙头企业) issued by the Fujian provincial government.

Passion Holdings Limited

Page 3 of 3

The Group expects to announce its financial results for the first quarter ended 30 September 2009

on or before 15 November 2009.

# # #

About Passion Holdings Limited

Passion Holdings Limited is an integrated designer, producer and retailer of a wide range of

handicrafts and furnishings.

Widely used as decorations, interior designs or home furnishings, the Group’s products are sold

either under its brand name ‘Passion’ or as original design manufacturer (“ODM”) products

through its distributors in the PRC and overseas. The Group’s products are categorised into 5

main series: rattan-wood series, bamboo-wood series, medium-density fibreboard (“MDF”) series,

wood series and iron series.

The Group’s strong design and development team can create approximately 2,000 new designs

annually, and it currently owns 9 patented designs, with another 17 pending approval.

The Group has been catering to the medium and high-end overseas markets over the past few

years, with a strong foothold in the European market. Its established ‘Passion’ brand name

amongst overseas customers provides a platform for growth within the PRC market, where it has

witnessed increasing domestic consumers’ recognition of the ‘Passion’ brand name.

The Group has a diversified customer base of more than 200 overseas distributors with a network

of over 5,000 points of sale (“POS”), as well as 10 local distributors with a network of more than

200 POS in the PRC.

With its large-scale manufacturing facilities located in Longyan City, Fujian Province, the PRC,

which has one of the larger forest bases in the PRC, the Group is actively involved in the various

stages of the manufacturing process of its products: (i) conceptualisation, design and development;

(ii) manufacture and assembly; and (iii) sales, marketing, distribution and export or retail.

The Group’s revenue grew at a compounded annual growth rate (“CAGR”) of 39.9% from

RMB277.1 million in FY2007 to RMB542.0 million in FY2009. Net profit attributable to equity

holders grew at a CAGR of 32.2% from RMB63.9 million in FY2007 to RMB111.6 million in

FY2009.