At GP Batteries the turnover for the three months ended September 2006 was S$225.3 million (approx. US$ 144.2 million) a decrease of 4.9% over the corresponding period last year. Profit attributable to equity holders of the Company was S$2.8 million (approx. US$ 1.8 million), a decrease of 28.1% over the corresponding period last year. Turnover decreased as demand for Nickel Metal Hydride rechargeable batteries continued to be affected by the price increases implemented by the Group. This is, however, partly cushioned by an increase in turnover of primary cylindrical batteries including Alkaline and Carbon Zinc batteries. Sales to North & South Americas registered a 20.0% decline. However, the impact of the shortfall was lessened by the healthy growth in sales to Taiwan and ASEAN. Sales to all other markets remained steady.

The Group has entered into a cooperation agreement with Amita Technologies and Welldone Company to set up a new company in Taiwan, GWA Energy, which will be engaged in product management, battery pack design and global sales management of high-power LiP batteries. Those products are mainly intended for power tools and e-bicycle markets. Subsequent to the conditional agreement to form a joint venture with Vectrix Corporation for the exclusive design, manufacture and supply of NiMH batteries to be used in electric powered motorcycles, the Group has commenced production of NiMH battery packs for use in the new motor cycles until such time as when the JV is ready.