2. 2 Group Financial Highlights For the Six Months Ended June 30 YOY change (%) 20042003 Turnover (HK$M)1,8581,527 21.7 Gross profit (HK$M)929710 30.8 EBITDA (HK$M)295164 79.9 Operating profit (HK$M)23592155.4 Profit before tax (HK$M)243109122.9 Profit attributable to shareholders (HK$M)17163171.4 Earnings per share (HK cents)11.84.4168.2 Interim dividend per share - basic (HK cents) - special (HK cents) 4.0 1.5 3.0 166.7 50.0 Dividend payout ratio (%)46.6102.3 54.4

3. 3 Selected Financial Highlights & Ratios Selected Financial Highlights & Ratios For the Six Months Ended June 30 20042003 Net cash & bank balances (HK$M)648784* Cash inflow from operating activities (HK$M)148 Inventory turnover on sales (days)2320 Current ratio (x)2.62.9 Gearing on shareholder’s equity (%)3.83.4 Gross margin (%)50.046.5 Operating margin (%)12.66.0 Net margin (%)9.24.1 * As at December 31, 2003

4. 4 Divisional Highlights Divisional Highlights For the Six Months Ended June 30 TurnoverOperating Profit Division 2004 (In HK$M) 2003 (In HK$M) YOY Chg (%) 2004 (In HK$M) 2003 (In HK$M) YOY Chg (%) Retail And Distribution 1,7391,45219.820064212.5 Manufacturing 1197558.7342630.8 Others * ---1250.0 Total 1,8581,52721.723592 155.4 * Includes interest income and intra-division eliminations

5. 5 Retail and Distribution Division For the Six Months Ended June 30, 2004 Retail and Distribution Turnover Composition by Market Mainland China 24% (25%) Hong Kong 22% (22%) Taiwan 20% (19%) Singapore 11% (11%) Malaysia 4% (4%) Others 14% (15%) Australia 5% (4%) Note: 1H03’s figures in brackets

6. 6 Retail and Distribution Division (Cont’d) For the Six Months Ended June 30, 2004 Retail and Distribution Turnover Composition by Brand Giordano Ladies 4% (4%) Bluestar Exchange 9% (7%) Giordano core line + Junior 87% (89%) Note: 1H03’s figures in brackets

7. 7 Retail and Distribution Division (Cont’d) Giordano core line + Junior Giordano Ladies Bluestar Exchange Retail Turnover Growth (YOY % Chg) 17.134.540.7 Total comparable store sales 15.3% Total comparable store gross profit 20.5% Brand Statistics

8. 8 (In HK$M) (Six Mths ended June 30)Percentage Change (%) Comp. Store Sales Growth (%) 20042003 Mainland China 420 36315.7 7.7 Hong Kong 384 31621.518.8 Taiwan 341 28121.4 8.0 Singapore 195 15525.826.9 Other Markets & Distribution Sales 399 33718.49.9* TOTAL1,7391,45219.8 Retail and Distribution Division Market Review All markets’ turnover grew by double-digit YOY due to low comparison bases resulted from SARS in 2003. *Other market’s comp. store sales growth

9. 9 Retail and Distribution Division Market Review (cont’d)  70  10  30

10. 10 Number of Outlets, by Region and by Brand (as at June 30, 2004) TotalGiordano core line Giordano Ladies Giordano Junior* Bluestar Exchange Australia35 000 Hong Kong84508026 Indonesia39 000 Japan19 000 Korea1721290430 Mainland China6155866320 Malaysia46 000 Middle East74 000 Myanmar17 000 Philippines40 000 Singapore4537080 Taiwan2111408756 Thailand41 000 Others12 000 Total1,4501,2652261102 *Includes stand-alone outlets only

11. 11 Manufacturing Division For the Six Months Ended June 30 20042003YOY change (%) Sales including internal sales (HK$M)405301 34.6 Sales to external customers (HK$M)11975 58.7 Percentage of Retail and Distribution’s total purchase 29% N.A. Contribution to the Group’s operating profit14%28%N.A. Sales to Group companies accounted for 71% of divisional sales, down from 75% in 1H03 Secured new clients from US and Europe, reducing reliance on Japanese market

12. 12 Outlook All major markets recovered from SARS Consolidated sales and gross profits rose 5.6% and 11.5%, respectively, compared against 1H02 Optimistic with outlook Improvement trend in Taiwan; focus on recapturing market share Performance is picking up in Korea; major turn- around in 2005 Higher CAPEX to fund store refurbishment in the 2H Impress customers with high quality products instead of discount offering

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