Jackin International Holdings saw attributable profit more than halve to $30 million last year from $64.96 million a year ago, due largely to an oversupply of floppy disks in the region. Chairman Helena Ho Yin-king defended the disappointing performance - the first set of results since the firm listed in November 1996 - citing other factors such as lengthy preparations for the establishment of a factory in Shanghai. Sales of video and audio cassette tapes fell sharply as a result of soaring demand for video compact disks (VCD) and CD-Roms, she said. Operating profit plunged 52 per cent to $28.73 million on turnover down 30 per cent to $295.06 million. Earnings per share fell 65.7 per cent to 8.63 cents. A final dividend of one cent was proposed against none in 1996, taking the full-year payout to two cents. Ms Ho said the company's performance should improve this year given that the problem of oversupply of floppy disks in Japan had been alleviated and sales of floppy disks had been boosted by growing concern over the Year 2000 millennium bug problem. 'The Shanghai factory, which will duplicate software for IBM under licence, will generate profits this year under a five-year purchase agreement,' she said. Ms Ho said IBM had committed to buying an undisclosed amount of products, which would comprise about 10 per cent of Jackin's sales this year.