2 Group Financial Highlights For the Six Months Ended June 30 YOY change (%) Turnover (HK$M)1,8581, Gross profit (HK$M) EBITDA (HK$M) Operating profit (HK$M) Profit before tax (HK$M) Profit attributable to shareholders (HK$M) Earnings per share (HK cents) Interim dividend per share - basic (HK cents) - special (HK cents) Dividend payout ratio (%)

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

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, Manufacturing Others * Total 1,8581, * Includes interest income and intra-division eliminations

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

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

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

10 Number of Outlets, by Region and by Brand (as at June 30, 2004) TotalGiordano core line Giordano Ladies Giordano Junior* Bluestar Exchange Australia Hong Kong Indonesia Japan Korea Mainland China Malaysia Middle East Myanmar Philippines Singapore Taiwan Thailand Others Total1,4501, *Includes stand-alone outlets only

11 Manufacturing Division For the Six Months Ended June YOY change (%) Sales including internal sales (HK$M) Sales to external customers (HK$M) 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 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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