1. INTERIM RESULTS HIGHLIGHTS
FOR THE SIX MONTHS ENDED JUNE 30, 2006

2. Giordano 2006 Interim Results
Group Financial Highlights
For the Six Months Ended June 30
2006
2005
YOY Change
Turnover (HK$M)
2,021
2,152
- 6.1%
Gross profit (HK$M)
1,021
1,096
- 6.8%
EBITDA (HK$M)
253
328
- 22.9%
Operating profit (HK$M)
184
246
- 25.2%
Profit before tax (HK$M)
192
261
- 26.4%
Profit attributable to shareholders (HK$M)
151
187
- 19.3%
Earnings per share (HK cents)
10.1
12.8
- 21.1%
Interim dividend per share
Basic (HK cents)
Special (HK cents)
4.5
2.0 -
Dividend payout ratio (%)
64.4%
50.8%
Aug 2006
Giordano 2006 Interim Results

3. Giordano 2006 Interim Results
Group Financial Highlights
For the Six Months Ended June 30
2006
2005
Net cash & bank balances (HK$M)
606
827 *
Cash inflow from operating activities (HK$M)
106
148
Inventory turnover on sales (days) 34 30
Current ratio (x)
2.6
2.6 *
Gross margin (%)
50.5%
50.9%
EBITDA margin (%)
12.5%
15.2%
Operating margin (%)
9.1%
11.4%
Net margin (%)
7.5%
8.7%
* As at December 31, 2005
Aug 2006
Giordano 2006 Interim Results

4. Giordano 2006 Interim Results
Divisional Highlights For the Six Months Ended June 30
Turnover
Operating Profit
2006
(HK$M)
2005
YOY % Change
Retail &
Distribution
1,869
1,953
- 4.3%
164
214
- 23.4%
Garment Trading & Manufacturing
480
520
- 7.7% 20 32
- 37.5%
Intra-division Elimination
(328)
(321)
+ 2.2% -
Total
2,021
2,152
- 6.1%
184
246
- 25.2%
Aug 2006
Giordano 2006 Interim Results

5. Retail & Distribution Turnover by Brand
For the Six Months Ended June 30, 2006
Bluestar Exchange
8% (9%)
Giordano Ladies
5% (4%)
Giordano core line + Junior
87% (87%)
Note:
2Q05 figures in brackets
Aug 2006
Giordano 2006 Interim Results

6. Giordano 2006 Interim Results
Retail & Distribution Division Operations Highlights
For the Six Months Ended June 30
Turnover (HK$M)
Comp Store Sales
Number of Outlets
2006
2005
YOY Change
Giordano &
Giordano Junior
1,624
1,698
- 4.4%
- 5.9%
1,530
Giordano Ladies 92 84
+ 9.5%
+ 6.4% 29
Bluestar Exchange
153
171
- 10.5%
- 6.1%
139
Retail & Distribution Total
1,869
1,953
- 4.3%
- 5.3%
First half gross margin deceased by 0.7 percentage points YOY.
First half operating margin decreased by 2.2 percentage points YOY.
Aug 2006
Giordano 2006 Interim Results

7. Retail & Distribution Turnover by Market
For the Six Months Ended June 30, 2006
Hong Kong
22% (21%)
Taiwan
17% (20%)
Singapore
10% (11%)
Mainland China
25% (24%)
Australia
6% (5%)
Note:
2Q05 figures in brackets
Indonesia
4% (3%)
Others
13% (13%)
Malaysia
3% (3%)
Aug 2006
Giordano 2006 Interim Results

8. Giordano 2006 Interim Results
Global Retail Network
Number of Outlets
As at Jun 30, 2006
As at
Dec 31, 2005
YTD Change
Giordano & Junior
Giordano Ladies
Bluestar Exchange
Total
Australia 53 - 2 55 52
+ 3
Hong Kong 54 8 37 99
101
Indonesia 67 5 72 62
+ 10
Japan 20 21 1
South Korea
150
168 18
Mainland China
667 11 36
714
706
+ 8
Malaysia
+ 1
Middle East
111
107
+ 4
Philippines 44 43
Singapore 48 50
+ 2
Taiwan
230
237 7
Thailand 59 57
Others 35 40 39
1,530 29
139
1,698
1,694
Aug 2006
Giordano 2006 Interim Results

9. Giordano 2006 Interim Results
Retail & Distribution Division
Operations Highlights – CHINA
For the Six Months Ended June 30
Turnover (HK$M)
Comp Store Sales
Number of Outlets
2006
2005
YOY Change
Mainland China
472
464
+ 1.7%
+ 7.2%
714
Unseasonable weather slowed sales in 1Q06. Sales decreased 2.0% YOY.
2Q06 sales up 6.1%.
1H06 sales up 1.7%, comp store sales up 7.2%, gross margin up 0.5 percentage point.
Added 8 outlets in 1H06.
Launched Giordano Concept Stores in Shanghai and Guangzhou.
Aug 2006
Giordano 2006 Interim Results

10. Giordano 2006 Interim Results
Retail & Distribution Division
Operations Highlights – HONG KONG
For the Six Months Ended June 30
Turnover (HK$M)
Comp Store Sales
Number of Outlets
2006
2005
YOY Change
Hong Kong
420
412
+ 1.9%
+ 4.4% 99
1Q06 sales increased 1.4% YOY; 2Q06 sales up 2.5% YOY.
1H06 sales up 1.9%, comp store sales up 4.4%.
Closed 2 outlets in 1H06.
Set up 5 Giordano Concept Stores.
Aug 2006
Giordano 2006 Interim Results

11. Giordano 2006 Interim Results
Retail & Distribution Division
Operations Highlights – TAIWAN
For the Six Months Ended June 30
Turnover (HK$M)
Comp Store Sales
Number of Outlets
2006
2005
YOY Change
Taiwan
322
391
- 17.6%
- 13.7%
230
Unseasonable weather and poor market conditions slowed sales in 1Q06. Sales decreased 25.6% YOY.
Conditions slowly improving in 2Q06.
1H06 sales decreased 17.6%, comp store sales down 13.7%.
Closed 7 stores in 1H06.
Aug 2006
Giordano 2006 Interim Results

12. Giordano 2006 Interim Results
Retail & Distribution Division
Operations Highlights – SINGAPORE
For the Six Months Ended June 30
Turnover (HK$M)
Comp Store Sales
Number of Outlets
2006
2005
YOY Change
Singapore
190
205
- 7.3%
- 15.7% 50
Intense competition and weakening consumer confidence in Southeast Asia slowed sales.
1H06 turnover decreased 7.3% YOY. Comp store sales down 15.7%.
Opened second Giordano Ladies store in Raffles City.
Added 2 stores in 1H06.
Aug 2006
Giordano 2006 Interim Results

13. Giordano 2006 Interim Results
Retail & Distribution Division
Operations Highlights – OTHER MARKETS
For the Six Months Ended June 30
Turnover (HK$M)
Number of Outlets
2006
2005
YOY Change
Australia
105
100
+ 5.0% 55
Malaysia 56 65
- 13.8% 54
Indonesia 68 61
+ 11.5% 72
Thailand 43 44
- 2.3% 59
Japan 28 29
- 3.4% 20
Rising interest rates and fuel prices weakened consumer confidence in Southeast Asia and slowed sales. Added 10 outlets in Indonesia in 1H06.
1H06 turnover increased 5.0% in Australia. Added 3 outlets during the period.
Japan sales up 5.5% in local currency terms, but down 3.4% after currency translation. Posted a small operating profit in 1H06. Closed 1 outlet.
Aug 2006
Giordano 2006 Interim Results

14. Giordano 2006 Interim Results
Retail & Distribution Division
Operations Highlights – Korea & Middle East
For the Six Months Ended June 30
Turnover (HK$M)
Comp Store Sales
Number of Outlets
2006
2005
YOY Change
South Korea
474
478
- 0.8%
- 9.6%
150
Middle East
172
145
+ 18.6%
+ 5.8%
111
Unseasonable weather affected 1Q06 sales in Korea. Sales rebounded in 2Q06.
1H06 turnover decreased 0.8% in Korea. Comp store sales down 9.6%. Closed 18 outlets during the period.
Middle East 1H06 turnover increased 18.6% YOY. Comp store sales up 5.8%. Added 4 outlets during the period, including the first store in India.
Aug 2006
Giordano 2006 Interim Results

15. Giordano 2006 Interim Results
Garment Trading & Manufacturing
For the Six Months Ended June 30
2006
2005
YOY Change
Sales including internal sales (HK$M)
480
520
- 7.7%
Sales to external customers (HK$M)
152
199
- 23.6%
Percentage of Retail & Distribution’s total purchase
31.2%
31.3% NA
Operating Margin (%)
4.2%
6.2%
Contribution to the Group’s operating profit
10.9%
13.0%
68.3% of divisional sales to Group companies, up from 61.7% in 1H05.
Gross margin decreased by 2.5 percentage points due to increased price competition.
Operating margin declined by 2.0 percentage points.
Relocating part of operations from high cost Guangdong to lower cost Shandong.
Aug 2006
Giordano 2006 Interim Results

16. Giordano 2006 Interim Results
Outlook
General
After a disappointing 1Q06, performance began to improve in 2Q06.
Interest rates have likely peaked, though high oil prices remain a concern.
We expect operating conditions to begin improving in 2H06.
Focus on driving brand differentiation with Giordano Concept Store strategy.
Step up expansion of Giordano Ladies network.
Opened first store in India and plan to add two more in 2H06.
Plan to add about 50 outlets globally in 2H06, most of them in Mainland China.
Launch new global CRM program in 2H06 to enhance customer loyalty.
Aug 2006
Giordano 2006 Interim Results

17. Giordano 2006 Interim Results
Outlook
Giordano
Launched 2 Concept Stores in China and 5 Concept Stores in Hong Kong in Spring 2006.
Opened 4 Concept Stores in Taipei and 3 in Singapore in August.
Mongkok Concept Store opening 4Q06.
Target to have Concept Stores make up 15% of Giordano stores by 2008.
Hong Kong Manson House
Giordano Concept Store
Aug 2006
Giordano 2006 Interim Results

18. Giordano 2006 Interim Results
Outlook
Hong Kong Causeway Bay
Giordano Concept Store
Hong Kong Causeway Bay
Giordano Concept Store
Aug 2006
Giordano 2006 Interim Results

19. Giordano 2006 Interim Results
Outlook
Taipei Square
Giordano Concept Store
Taipei 101
Giordano Concept Store
Aug 2006
Giordano 2006 Interim Results

20. Giordano 2006 Interim Results
Outlook
Giordano Ladies
Opened new stores in Xintiandi in Shanghai and Raffles City in Singapore in 1H06.
Additional stores planned for the Beijing (1), Hong Kong (2) and Taiwan (1) in 2H06.
Faster growth at about 10 outlets a year from 2007.
Focus on regional centers like Hangzhou, Kaohsiung, Kuala Lumpur and Bangkok.
Singapore Raffles City
Giordano Ladies Store
Aug 2006
Giordano 2006 Interim Results

21. Giordano 2006 Interim Results
Outlook
Shanghai Xintiandi Giordano Ladies Store
Aug 2006
Giordano 2006 Interim Results

22. Giordano 2006 Interim Results
Outlook
Hong Kong
Strategic new store openings in 2H06:
Giordano Concept Store in Mongkok,
Giordano Ladies in HK Airport and Shatin New Town Plaza.
Mainland China
Growth through new store openings (about 20 in 2H06) and comp store sales growth.
Grow wholesale turnover with better merchandising.
Aug 2006
Giordano 2006 Interim Results

23. Giordano 2006 Interim Results
Outlook
Taiwan
Weak economy and political crisis continue to affect consumer confidence.
Tough market conditions driving retrenchment and consolidation.
Converted 4 locations to Concept Store format in August.
Target to add 10 – 20 outlets in 2H06.
Singapore
Expect market conditions to improve in 2H06.
Converted 3 locations to Concept Store format in August.
Aug 2006
Giordano 2006 Interim Results

24. Giordano 2006 Interim Results
Outlook
Other Markets
Consumer confidence slowly improving in Southeast Asia.
Stable economic growth expected for Australia and Japan.
Target steady expansion of network in in Australia (4) and Japan (2) in 2H06.
South Korea
Focus on growing sales through better merchandising.
Target to add 10 – 15 outlets in 2H06.
Middle East
Consumer spending is expected to remain strong from high oil prices.
Escalation in rentals and salaries a concern.
Aug 2006
Giordano 2006 Interim Results

25. Giordano 2006 Interim Results
Outlook
India
First Giordano store opened in May. Two more to open in 4Q06.
Target to have at least ten stores in 2007 and 20 in 2008 in India.
Chennai City Center
Giordano Store
Aug 2006
Giordano 2006 Interim Results

26. Giordano 2006 Interim Results
Multi-brand + Multi-market Strategy
BRAND POSITIONING
Basic/Classic
Affordable
Premium
Fashion
AGNES B
LEVIS
ZARA
GIORDANO
Ladies
ESPRIT
GIORDANO
Concept
GIORDANO
Regular
BOSSINI
BALENO
BLUESTAR
Aug 2006
Giordano 2006 Interim Results

27. Giordano 2006 Interim Results
Multi-brand + Multi-market Strategy
MARKET OPPORTUNITIES
Stores at June 30, 2006
12 Mths Growth Target
Remarks
Mainland China
714 50
Faster store growth for Giordano, Giordano Ladies and Bluestar Exchange.
Hong Kong
& Singapore
149 5
Mature markets. Steady growth at 1 to 2 locations a year.
Taiwan
230 30
Southeast Asia
229 10
Faster store growth for Giordano. Launch Giordano Ladies in Kuala Lumpur and Bangkok. Launch Bluestar Exchange in Indonesia and Philippines.
Australia 55
Continued roll-out of Giordano and Bluestar Exchange stores.
Japan 20
Faster store growth for Giordano.
South Korea
150 15
Faster store growth for Giordano. Opportunity to launch Giordano Ladies and Bluestar Exchange.
Middle East
110
India 1
Steady penetration of Indian market with Giordano.
Others 40
Total
1,698
Aug 2006
Giordano 2006 Interim Results