1. Legend Group Limited 2002/03 Annual Results Announcement Financial Review Ms. Mary Ma Senior Vice-President & Chief Financial Officer May 28, 2003

2. 2 Overview  Turnover for the full year grew 5.0% to HK$20.23 billion  EBITDA amounted to HK$1.175 billion, an increase of 20.8% compared to proforma EBITDA of HK$973 million for last year  Profit attributable to shareholders amounted to HK$1.017 billion, similar to that of last year. Net profit before disposal of investment was HK$1.044 billion, representing a substantial increase of 21.1% from HK$862 million (proforma) of previous year  The Group’s gross margin improved from 13.70% (proforma) of previous year to 14.82%  Overall net margin was 5.03%, compared to 5.33% (proforma) of previous year  Return on equity (ROE) was 25.6%  The board of directors proposed a final dividend of 3.0 HK cents per share and a special dividend of 5.2 HK cents per share

3. 3 2002/03 Consolidated Profit & Loss Account Note: The demerger of Digital China had been completed on June 1, 2001. Hence, its results for the period from April to May 2001 is not consolidated in the Group’s proforma results of FY2001/02.

4. 4 EBITDA Growth 71.9% 31.5%20.8%

5. 5 Pre-ex Profit* 97.0%19.8%21.1% * Pre-ex Profit: Net profit before one-time amortization of intangible assets and (losses)/gains on disposal of subsidiaries, an associated company and investment securities

6. 6 2002/03 Turnover Breakdown Corporate IT 53.4% (52.3%) Consumer IT 33.7% (38.4%) Handheld Device (Note 1) 7.1% (1.1%) Contract Manufacturing (Note 2) 4.9% (8.0%) IT Service 0.9% (0%) Note 1: Starting from FY2002/03, contribution from handheld device business includes the contribution from mobile handset business. Note 2: Legend sold 55% of Legend Techwise (PCB) in Jan 2002. Hence, the contribution from contract manufacturing business in FY2002/03 does not include any contribution from Legend Techwise. Note 3: FY2001/02 figures are in brackets. Internet service business contributed about 0.2% in FY2001/02. Legend-AOL JV was formally set up on Nov 20, 2001. Hence, the contribution from Internet service is not included in the consolidated turnover for FY2002/03.

7. 7 Changes in Turnover Breakdown (Full Year) Note 4: Legend sold 55% of Legend Techwise (PCB) in Jan 2002. Hence, the contribution from contract manufacturing business in FY2002/03 does not include any contribution from Legend Techwise. Note 5: Contribution from Internet service for FY2001/02.

8. 8 Changes in Turnover Breakdown (Q4) Note 4: Legend sold 55% of Legend Techwise (PCB) in Jan 2002. Hence, the contribution from contract manufacturing business in FY2002/03 does not include any contribution from Legend Techwise.

9. 9 Changes in Operating Profit Breakdown (Full Year) Note 6: Operating profit for FY2001/02 and FY2002/03 before amortization of goodwill and (losses)/gains on disposal of subsidiaries, an associated company and investment securities.

10. 10 Changes in Operating Profit Breakdown (Q4) Note 6: Operating profit for FY2001/02 and FY2002/03 before amortization of goodwill and (losses)/gains on disposal of subsidiaries, an associated company and investment securities.

11. 11 Gross Margin Analysis (Full Year) Corporate ITConsumer ITHandheld Device GroupContract Manufacturing (Note 7) IT Service Note 7: Before elimination of inter-company transaction, the gross margin of contract manufacturing business is 9.6% (2001/02: 14.9%).

12. 12 Gross Margin Analysis (Q4) Corporate ITConsumer ITHandheld Device GroupContract Manufacturing (Note 7) IT Service Note 7: Before elimination of inter-company transaction, the gross margin of contract manufacturing business is 9.7% (2001/02: 12.3%).

13. 13 Consolidated Balance Sheet

14. 14 Key Financial Figures

15. 15 Key Financial Figures Note 8: Profit attributable to shareholders used in ratio calculation included (losses)/gains on disposal of subsidiaries, an associated company and investment securities.

16. Legend Group Limited 2002/03 Annual Results Announcement Review and Prospect of Market and Business Mr.Yang Yuanqing President & Chief Executive Officer May 28, 2003

17. 17 Market Review  China PC unit shipment grew 18% in FY2002/03 –Commercial PC unit up 21.7% –Education and SME are the main drivers of commercial IT –Consumer PC unit up 12.7% –The booming of 2nd - 6th tier cities drove the growth of consumer PC market  China IT market stayed flat in 2002, grew only 2% in value with hardware spending shrank 3% –Overall PC ASP declined 17% due to cheaper components, lower tariff, relatively higher growth in lower-end markets (education, etc.) –Commercial PC value up 2.4% while consumer PC value down 7.4%  Rapid growth of digital market spurred demand for digital applications for PCs  Mobile handset market boomed with rapid growth from domestics players –More frequent new product launches in 2H of 2002

18. 18 Business Review  Adopted profit centric strategy  Successful implementation of service-oriented transformation and technology innovation strategies showed early promising results  Major operating results exceeded our forecast, in line with the market growth –Turnover up 5% YoY –Net profit* up 21.1% YoY, gross margin improved 112 basis point to 14.82% –PC unit shipment up 17.2%, Q4 up 13.0% *Before gains/losses on disposal of subsidiaries, associated companies and investment securities Consumer PC Q4: 7.6% FY: 9.5% Server Q4: 43.2% FY: 39.6% Commercial Desktop Q4: 14.6% FY: 21.5% Notebook Q4: 31.7% FY: 24.9%

19. 19 Business Review - Commercial & Consumer IT  Commercial PC unit up 21.5%, with 29.3% market share ( CY 2002) –Operating profit achieved HK$744mn, up 30% y-o-y –Gross margin improved to 15.3% from 14.2% –Government orders in Q3 and Q4 were pushed back due to transitions within Chinese government  Consumer PC unit up 9.5% with market share of 27.0% (CY 2002) –Recorded HK$360 mn in operating profit, up 55% y-o-y –Gross margin improved to 13.3% from 10.8% –Digital business achieved breakthroughs in three areas MP3 player: No.1 with market share of 20% in China Digital camera: No.1 best seller amongst domestic brands Consumer ink-jet printer: leading market share in China

20. 20 Business Review - Mobile Handset  Handset business launched successfully –Turnover (in both volume and value) exceeded our initial forecast –Established operational infrastructure: formed JV, completed M&A integration process –Distribution networks in place –Strengthened R&D capabilities

21. 21 Landmarks for Technological Breakthroughs  Launched the first commercial supercomputer in China in August 2002 –Penetrated high end users such as: CAS, Ministry of Aerospace and CNOOC –Technological expertise to support market leader position as No. 1 Chinese server manufacturer  Differentiated technologies added product value and drove sales growth –“Kaitian 6800” gained “2002 Intel Innovative PC Award”, well received by our customers –Dual mode consumer PC  “Tianjiao” and “Tianrui” series ， featuring self- developed operating system, LEOS, received several awards in China and Hong Kong  “Legend World 2002” debuted our new technology era with “Collaborating Applications” vision  New patent awarded at record high, ranked top 10 in China –572 patent applications

22. 22 Service Transformation Showed Promising Results  Launched “Sunshine Service” for customer service –Largest customer service network in China, covering 260 cities by 3,000 certified service engineers  IT service business completed “Three Horizontal and Four Vertical” operational structure through M&As and integration –“Three Horizontal”: basic platforms, horizontal applications and operation support –“Four Vertical”: telecommunication, finance, government and manufacturing  IT 1 for 1 services strengthened core competence –Successfully rolled out business models, formed solutions that fit the needs from various industries –Launched 20 new solutions and received numerous awards in the industry –Developed SME solutions that have been adopted by 300 customers in logistic and manufacturing sectors

23. 23 Prospects of China IT Market  Despite the impact by SARS, we remain cautiously optimistic in 2003 and anticipate healthy growth in the long term  Robust China economy will drive China IT market right back to fast track –Accelerated SOE reforms, finance and telecommunication industries facing fierce competitions –Urbanization creates vast low-end market –Replacement cycle drives consumer PC –The industrialization of digital application  China IT market expected to grow 12% in 2003 –PC market by unit: grows annually by 15%~17% –PC market in value: grows annually by 10%~12% –Handset: 70 mn pcs, grows annually by 10%  SARS impacted IT industry in short-term but expected to benefit the industry for long-term

24. 24 Corporate & Consumer IT, and Handset  Corporate IT : key driver for IT Market –Notebook unit shipment > 30%; Server unit shipment > 25% –SME market continues to expand, accounts for about 40% of the total commercial IT market –Government: IT spending expected to exceed 20% –Education: IT spending expected exceed 25%  Consumer IT : application drive demand –Internet, education, digital applications, gaming, replacement, small to mid-tier cities  Handset –Domestic brands maintain growth momentum –Brand advantage and superior management will win

25. 25 Operation Strategies for the New Fiscal Year  Build on what we have achieved –Strategic developments –New business initatives  Take advantage of market opportunities in expanding our business scale for sustainable profit growth  Relentlessly pursue core competancies for the long-term

26. 26 Product Road Map Terminal Devices PC Handset, PDA, Digital Camera Back-office Products Server High performance server, storage, network securities products ( 产品售前、售后服务 ) Service Value-added service IT 1for1 IT Service Consumers SME Large clients “Wanquan” Server

27. 27 Three Tier Businesses Drive High Growth Core Businesses: commercial and consumer desktop Growth Businesses: handset, notebook, server, digital product, peripheral, network security Seed Businesses: IT service, high performance server, storage, networking products TurnoverProfit TurnoverProfit TurnoverMilestone

28. 28 Solidify Core Competencies  Further implement technological innovations and service transformation  Strengthen professional matrix management  Enhance strategic planning & execution capabilities

29. Legend Group Limited 2002/03 Annual Results Announcement Reflection of Legend’s Performance for the Past Two Years Mr. Liu Chuanzhi Chairman of the Board May 28, 2003