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- 2.1: Financial Reports & Results Announcements.
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- 4.2: Board of Directors.
- 4.3: Committees.
  - 4.3.1: Audit.
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- 4.4: Management.

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Headquarters (Hong Kong):
Johnson Electric Group
12 Science Park East Avenue, 6/F
Hong Kong Science Park
Shatin, NT
Hong Kong
Main Line: +852 2663 6688
Fax No.: +852 2897 2054
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Johnson Electric Holdings Limited

(Incorporated in Bermuda with limited liability)

(Stock code : 179)

ANNUAL RESULTS ANNOUNCEMENT
FOR THE YEAR ENDED 31ST MARCH 2008

HIGHLIGHTS

Total sales were US$2,221 million – an increase of 6% compared to the 2007 financial year
Operating cash flow amounted to US$316 million, an increase of 42%
Operating profit, after restructuring charges and provisions of US$24 million, increased 20% to US$189 million
Net earnings attributable to shareholders increased by 19% to US$131 million or 3.57 US cents per share
Net debt as a percentage of total equity decreased to 26% from 44% a year earlier
The Board has recommended a final dividend of 1.25 US cents per share, which together with the interim dividend of 0.58 US cents per share, represents a total dividend of 1.83 US cents per share

The Directors announce that the audited consolidated profit attributable to equity holders for the year ended 31st March 2008 was US$130,849,000, an increase of 19% over the corresponding period in 2007.

FINANCIAL RESULTS

The audited consolidated profit and loss account for the year ended 31st March 2008 together with comparative figures for the corresponding period in 2007 is set out below:

CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31st March 2008	Note	2008	2007
		US$'000	US$'000

Sales	2	2,220,792	2,086,628
Cost of goods sold		(1,656,452)	(1,574,401)
Gross profit		564,340	512,227
Other income and gains		17,701	7,336
Selling and administrative expenses		(369,239)	(349,558)
Restructuring provisions and assets impairment	3	(23,986)	(12,245)
Operating profit	4	188,816	157,760
Finance costs, net		(18,745)	(21,523)
Share of profits / (losses) of
jointly controlled entities / associated companies		117	(302)
Profit before income tax		170,188	135,935
Income tax expenses	5	(31,939)	(22,932)
Profit for the year		138,249	113,003

Attributable to:
Equity holders of the Company		130,849	109,696
Minority interests		7,400	3,307
		138,249	113,003

Dividends	6	67,353	61,230

Earnings per share for profit attributable to the
equity holders of the Company during the year
(expressed in US cents per share)
Basic	7	3.57	2.99
Diluted	7	3.57	2.99

CONSOLIDATED BALANCE SHEET
As at 31st March 2008
	Note	2008	2007
		US$'000	US$'000
ASSETS
Non-current assets
Property, plant and equipment		409,864	390,019
Investment properties		38,978	24,208
Leasehold land and land use rights		22,462	24,805
Intangibles		775,162	667,154
Associated companies		1,920	2,364
Deferred income tax assets		28,892	30,918
Available-for-sale financial assets		5,833	5,131
Other financial assets at fair value through
profit or loss		8,813	4,140
		1,291,924	1,148,739


Current assets
Stocks and work in progress		269,924	251,170
Trade and other receivables	8	505,561	458,859
Derivative financial instruments		15,111	9,463
Other financial assets at fair value through
profit or loss		-	995
Income tax recoverable		4,126	1,817
Bank balances and cash		268,031	149,282
		1,062,753	871,586
Current liabilities
Trade and other payables	9	352,286	298,055
Current income tax liabilities		25,642	14,204
Derivative financial instruments		24,979	698
Borrowings		37,796	20,615
Provisions and other liabilities		30,003	25,539
		470,706	359,111
NET CURRENT ASSETS		592,047	512,475

TOTAL ASSETS LESS CURRENT LIABILITIES		1,883,971	1,661,214

Non-current liabilities
Borrowings		526,686	552,900
Derivative financial instruments		84,639	19,272
Deferred income tax liabilities		96,500	87,535
Provisions and other liabilities		43,216	38,117
		751,041	697,824
NET ASSETS		1,132,930	963,390


EQUITY
Share capital		77,704	82,062
Reserves		978,080	818,568
Proposed dividends		46,158	40,035
		1,101,942	940,665
Minority interests		30,988	22,725
TOTAL EQUITY		1,132,930	963,390

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
For the year ended 31st March 2008

	2008	2007
	US$'000	US$'000

Gain on revaluation of property, plant and equipment
and leasehold land transfer to
investment properties	4,346	4,662
Deferred income tax effect on gain on revaluation
of property, plant and equipment and leasehold
land transfer to investment properties	(760)	(816)
Available-for-sale financial assets:
- fair value (losses)/gains	(660)	304
- release of reserves upon disposal	(159)	217
Fair value losses on hedging instruments	(13,875)	(2,273)
Deferred income tax effect on fair value losses in
hedging instruments	2,747	(950)
Actuarial gains/(losses) of defined benefit plan	(6,688)	1,798
Deferred income tax effect on actuarial (gains)/losses
of defined benefit plan	2,977	(950)
Capital reserve released on disposal of subsidiaries	(45)	-
Exchange differences on translation of foreign
subsidiaries and associated companies	110,199	41,880
Net income recognised directly in equity	98,082	45,220
Profit for the year	138,249	113,003
Total recognised income for the year	236,331	158,223

Note:

1. Principal accounting policies

The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standard (HKFRS). The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets and financial liabilities (including derivative instruments) as fair value through profit or loss and iinvestment properties, which are carried at fair value.

In 2007/08, the Group adopted the new / revised standards and interpretations of HKFRS below, which are relevant to its operations. The comparatives have been amended as required, in accordance with the relevant requirements.

HKFRS 7	Financial Instruments: Disclosures
HKAS 1 (Amendment)	Presentation of Financial Statements: Capital Disclosures
HK(IFRIC)-Int 8	Scope of HKFRS 2
HK(IFRIC)-Int 9	Reassessment of Embedded Derivatives
HK(IFRIC)-Int 10	Interim Reporting and Impairment
HK(IFRIC)-Int 11	HKFRS 2 - Group and Treasury Share Transactions

The adoption of new / revised HKASs, including HKFRS 7, HKAS 1 (amendment), HK(IFRIC)-Int 8, HK(IFRIC)-Int 9, HK(IFRIC)-Int 10 and HK(IFRIC)-Int 11, did not result in substantial changes to the Group's accounting policies. In summary:

- HKFRS 7, 'Financial Instruments: Disclosures' and the complementary amendment to HKAS 1, 'Presentation of financial statements - Capital disclosures', introduces new disclosures relating to financial instruments and does not have any impact on the classification and valuation of the Group's financial instruments, or the disclosures relating to taxation and trade and other payables.

- HK(IFRIC)-Int 8, 'Scope of HKFRS 2', requires consideration of transactions involving the issuance of equity instruments, where the identifiable consideration received is less than the fair value of the equity instruments issued in order to establish whether or not they fall within the scope of HKFRS 2. This standard does not have any impact on the Group's financial statements.

- HK(IFRIC)-Int 9, 'Reassessment of Embedded Derivatives', requires an entity to assess whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative when the entity first becomes a party to the contract. Subsequent reassessment is prohibited unless there is a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required. As none of the group entities have changed the terms of their contracts, and the Group already assesses if embedded derivative should be separated using principles consistent with HK(IFRIC)-Int 9, the adoption of this interpretation does not have any impact on the Group's financial statements.

- HK(IFRIC)-Int 10, 'Interim financial reporting and impairment', prohibits the impairment losses recognised in an interim period on goodwill and investments in equity instruments and in financial assets carried at cost to be reversed at a subsequent balance sheet date. This standard does not have any impact on the Group's financial statements.

- HK(IFRIC)-Int 11, 'HKFRS 2 – Group and treasury share transactions', provides guidance on whether share-based transactions involving treasury shares or involving Group entities (for example, options over a parent's share) should be accounted for as equity- settled or cash-settled share-based payment transactions in the stand-alone accounts of the parent and Group companies. This interpretation has no material impact on the Group's accounting policies as the Group's existing accounting policy on share-based transactions comply with this interpretation.

2. Segment information

(a) Primary reporting format - business segments

Turnover of the Group consists of sales of goods.

The principal operations of the Group are the manufacture, sale, and trading of motors, electromechanical components, motion systems and sub-systems, and materials. The manufacturing segment comprised Automotive Products Group (APG), Industry Products Group (IPG) and other products manufactured by the Group. The trading segment is principally engaged in trading of goods not manufactured by the Group.

The segment results for the year ended 31st March 2008 are as follows:

	Manufacturing	Trading	Group
	2008	2008	2008
	US$'000	US$'000	US$'000

Sales	2,089,393	131,399	2,220,792

Segment operating profit	188,624	192	188,816
Finance costs	(17,990)	(755)	(18,745)
Share of profit of associated companies	117	-	117

Profit/ (loss) before income tax	170,751	(563)	170,188
Income tax expenses	(31,464)	(475)	(31,939)
Profit/(loss) for the year	139,287	(1,038)	138,249

Total assets
Segment assets	2,238,150	81,589	2,319,739
Associated companies	1,920	-	1,920
Deferred income tax assets and income recoverable	33,000	18	33,018
	2,273,070	81,607	2,354,677

Total liabilities
Segment liabilities	1,047,011	52,594	1,099,605
Deferred income tax liabilities and income tax liabilities	121,709	433	122,142
	1,168,720	53,027	1,221,747

Other information
Restructuring provision and assets impairment	23,986	-	23,986
Capital expenditure:
- Acquisition of property, plant and equipment and leasehold land	96,014	1,324	97,338
- Addition of intansible assets	2	1,553	1,555
Addition of property, plant and equipment from the acquisition of subsidiaries	-	34	34
Depreciation on property, plant and equipment	71,975	189	72,164
Amortisation charge on leasehold land and land use rights	684	-	684
Amortisation charge on intangibles	17,777	116	17,893

	Manufacturing	Trading	Group
	2007	2007	2007
	US$'000	US$'000	US$'000

Sales	1,989,907	96,721	2,086,628

Segment operating profit	155,052	2,708	157,760
Finance costs	(21,258)	(265)	(21,523)
Share of losses of jointly controlled entities and associated companies	(302)	-	(302)

Profit before income tax	133,492	2,443	135,935
Income tax expenses	(22,143)	(789)	(22,932)
Profit for the year	111,349	1,654	113,003

Total assets
Segment assets	1,948,076	37,150	1,985,226
Associated companies	2,364	-	2,364
Deferred income tax assets and income tax recoverable	32,735	-	32,735
	1,983,175	37,150	2,020,325

Total liabilities
Segment liabilities	940,104	15,092	955,196
Deferred income tax liabilities and income tax liabilities	101,202	537	101,739
	1,041,306	15,629	1,056,935

Other information
Restructuring provision and assets impairment	12,245	-	12,245
Capital expenditure:
- Acquisition of property, plant and equipment and leasehold land	76,189	594	76,783
- Addition of intansible assets	6	278	284
Addition of property, plant and equipment from the acquistion of subsidiaries	10,029	-	10,029
Depreciation of property, plant and equipment	70,706	118	70,824
Amortisation charge on leasehold land and land use rights	689	-	689
Amortisation charge on intangibles	17,105	92	17,197

(b) Secondary reporting format - geographical segments

In presenting information on the basis of geographical segments, sales are attributed to the region from which the customer order originated. Segment assets and capital expenditure are based on the location of the assets.

	Sales		Capital expenditure		Segment assets
	2008	2007	2008	2007	2008	2007
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Asia	709,689	686,181	69,991	54,484	907,503	728,358
America	524,096	504,685	6,443	3,851	203,699	229,174
Europe	987,007	895,762	22,459	18,732	1,208,537	1,027,694
	2,220,792	2,086,628	98,893	77,067	2,319,739	1,985,226

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3. Restructuring provision and asset impairment

Restructuring provision and assets impairment relate mainly to activities in the US and Europe. In the US, these costs included some consolidation of manufacturing and distribution facilities in our Automotive Products Group and the resizing of our Parlex operations. In Europe, costs related primarily to early stage work in new initiatives to simplify the European manufacturing, supply chain, and legal entity footprints.

	2008	2007
	US$'000	US$'000

Restructuring provision	12,800	11,241
Assets impairment relating to restructuring	11,186	1,004
Total provision	23,986	12,245

4. Depreciation and amortisation

During the year, depreciation of US$71,952,000 (2007 : US$70,325,000) in respect of property, plant and equipment, amortisation of US$684,000 (2007: US$689,000) in respect of leasehold land and land use rights and amortisation of US$17,893,000 (2007: US$17,197,000) in respect of intangibles were charged in the profit and loss account.

5. Income tax expenses

Hong Kong profits tax has been provided at the rate of 17.5% (2007: 17.5%) on the estimated assessable profit for the year. Overseas tax has been provided at the applicable rates on the estimated assessable profit in respective countries of operations for the year.

	2008	2007
	US$'000	US$'000
Current taxation
Hong Kong profits tax	11,339	9,715
Overseas taxation	17,271	22,210
Under/(over) provisions in prior years	137	(4,919)
	28,747	27,006
Deferred income tax	3,192	(4,074)
	31,939	22,932

6. Dividends

	2008	2007
	US$'000	US$'000

Interim, paid, of 0.58 US cents per share (2007 : 0.58 US cents)	21,195	21,195
Final, proposed, of 1.25 US cents per share (2007 : 1.09 US cents)	46,158	40,035
	67,353	61,230

7. Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.

	2008	2007

Profit attributable to equity holders of the Company (thousands US dollar)	130,849	109,696

Weighted average number of ordinary shares in issue (thousands)	3,667,897	3,671,883

Basic earnings per share (US cents per share)	3.57	2.99

The Company has share options that could dilute basic earnings per share in the future. Diluted earnings per share equals basic earnings per share because there were no potential dilutive ordinary shares outstanding during the year ended 31st March 2008.

8. Trade and other receivables

The trade and other receivables include trade receivables of US$437,842,000 (2007: US$408,178,000). The Group normally grants credit terms ranging from 30 to 90 days to its trade customers. The ageing analysis of trade receivables based on invoice date was as follows:

	0-60 days	61-90 days	Over 90 days	Total
	US$'000	US$'000	US$'000	US$'000

Balance at 31st March 2008	343,956	46,714	47,172	437,842

Balance at 31st March 2007	326,703	35,693	45,782	408,178

9. Trade and other payables

The trade and other payables include trade payables of US$227,425,000 (2007: US$182,976,000). The ageing analysis of trade payables based on invoice date was as follows:

	0-60 days	61-90 days	Over 90 days	Total
	US$'000	US$'000	US$'000	US$'000

Balance at 31st March 2008	181,501	32,550	13,374	227,425

Balance at 31st March 2007	148,275	11,454	23,247	182,976

10. Commitments

10.1 Capital Commitments

Group	2008	2007
	US$'000	US$'000
Capital commitment for property, plant and equipment

Authorised but not contracted for	5,598	3,935
Contracted for	9,473	7,600
	15,071	11,535

10.2 Operating Lease Commitments

(i) At 31st March 2008, the Group had future aggregate minimum lease payments under non-cancellable operating leases as follows:

	2008		2007
	Land and		Land and
	buildings	Others	buildings	Others
	US$'000	US$'000	US$'000	US$'000

Not later than one year	15,703	1,961	14,088	1,197
Later than one year and not
later than five years	36,802	1,395	34,547	1,197
Later than five years	23,286	-	10,733	8
	75,791	3,356	59,368	2,402

(ii) At 31st March 2008, the Group had future aggregate minimum lease rental receivable under non-cancellable operating leases on land and buildings as follows:

	2008	2007
	US$'000	US$'000

Not later than one year	2,397	1,820
Later than one year and not
later than five years	634	1,759
	3,031	3,579