2. 2 Group Financial Highlights For the Year Ended December 31 YOY change (%) 20032002 Turnover (HK$M)3,3893,5885.5 Gross profit (HK$M)1,6341,6772.6 EBITDA (HK$M)48858316.3 Operating profit (HK$M)3643855.5 Profit attributable to shareholders (HK$M)26632818.9 Earnings per share (HK cents)18.522.818.9 Dividend per share - interim (HK cents) - interim special (HK cents) - final (HK cents) - special (HK cents) 1.5 3.0 4.5 12.0 4.5 0.0 4.5 10.0 66.7 N.A. - 20.0 Dividend payout ratio (%)113.583.330.2

3. 3 Selected Financial Highlights & Ratios Selected Financial Highlights & Ratios For the Year Ended December 31 20032002 Net cash & bank balances (HK$M)784614 Cash inflow from operating activities (HK$M) 498481 Inventory turnover on sales (days)2426 Current ratio (x)2.52.8 Gearing on shareholders equity (x)0.40.3 Gross margin (%)48.246.7 Operating margin (%)10.7 Net margin (%)7.89.1 Return on average equity (%)14.818.8

4. 4 Divisional Highlights Divisional Highlights For the Year Ended December 31 DivisionTurnoverOperating Profit (In HK$M)20032002 YOY Chg (%) 20032002 YOY Chg (%) Retail And Distribution 3,2213,3754.63163201.3 Manufacturing 16821321.1425422.2 Others * ---61145.5 Total 3,3893,5885.53643855.5 * Includes interest income and intra-division eliminations

5. 5 Retail and Distribution Division For the Year Ended December 31, 2003 Retail and Distribution Turnover Composition by Market Mainland China 25% (25%) Hong Kong 22% (23%) Taiwan 19% (20%) Singapore 11% (11%) Malaysia 4% (4%) Others 14% (14%) Australia 5% (3%) Note: 2002s figures in brackets

6. 6 Retail and Distribution Division (Contd) For the Year Ended December 31, 2003 Retail and Distribution Turnover Composition by Brand Giordano Ladies 4% (4%) Bluestar Exchange 7% (7%) Giordano core line + Junior 89% (89%) Note: 2002s figures in brackets

7. 7 Retail and Distribution Division (Contd) Giordano core line + Junior Giordano Ladies Bluestar Exchange Retail Turnover Growth (YOY % Chg) 3.210.95.4 Gross Margin (YOY Basis Point Chg) 18030flat Total comparable store sales 9.3% Total comparable store gross profit 7.7% Brand Statistics

8. 8 Market Review Mainland China Sales down 5%; sales per sq. ft. fell 25% Adverse effects of SARS Warm weather dampened sales in Sept. & Oct. Cold temperatures resulted in sales rebound in Nov. & Dec. Rental in prime locations remain high Added 39 core line, 3 Junior, 9 Bluestar outlets * Includes directly managed outlets only Sales (HK$M) Sales per Sq. ft. (HK$) Comp. Store Sales Chg.* Retail Floor area(ft 2 ) No. of Outlets No. of Sales assoc. 20038153,00013%484,300581703 20028564,000-434,800532633

9. 9 Sales down 10%; sales per sq. ft. fell 9% Worst hit by SARS due to reliance on tourism Tightening inventory; cutting costs; high-margin products Profitability recovered in 2H Higher gross margins, except Bluestar; prices reduced for larger market share Market Review Hong Kong Sales (HK$M) Sales per Sq. ft. (HK$) Comp. Store Sales Chg. Retail Floor area(ft 2 ) No. of Outlets No. of Sales assoc. 20036976,20015%112,10075486 20027766,8003%116,40073537

10. 10 Sales down 11%; sales per sq. ft. fell 10% Momentum picked up in 2H on inventory mgmt and global product platform Giordano Ladies major recovery after SARS Bluestar capturing a larger market share in 4Q 03 Non-performing stores closed; better located stores added in late 4Q Current recovery in performance sustainable Market Review Taiwan Sales (HK$M) Sales per Sq. ft. (HK$) Comp. Store Sales Chg. Retail Floor area(ft 2 ) No. of Outlets No. of Sales assoc. 20036042,60013%241,500195794 20026772,90015%232,900182773

11. 11 Sales down 7%; sales per sq. ft. fell 14% Iraq War and SARS led to negative consumer sentiment in 1H Heavy industry-wide price promotions in 2H Recent modifications to our competitive strategy should yield stronger performance in 2004 Market Review Singapore Sales (HK$M) Sales per Sq. ft. (HK$) Comp. Store Sales Chg. Retail Floor area(ft 2 ) No. of Outlets No. of Sales assoc. 20033487,70014%43,60043279 20023729,0007%46,00049320

12. 12 Market Review (in HK$M)AustraliaMalaysiaIndonesiaThailandJapanTotal 2003149114906428445 200298114463825321 YOY Chg (%)52flat96681239 Accounts for 14% of total retail turnover (2002:10%) YOY sales and gross margins improved In Australia, 4 new stores were added in late 4Q; 5 new outlets planned for 2004; and growth momentum continuing In Japan, shop portfolio revamped; efficiency improved by store size reduction. Sales per sq. ft. rose 12.5%. 10 new outlets to be added in 2004. Other Markets

13. 13 Hurt by competition and weak consumer spending, sales fell 25% YOY Frequent markdowns led to gross margins decline Occupancy costs at department stores up due to higher commission rates Higher occupancy costs, coupled with falling sales productivity resulted in double-digit YOY profits decline Market Review Korea

14. 14 By the end of December 31, 2003, total of 1363 outlets worldwide Mainland China 581 Hong Kong 75 Japan13 Australia34 Taiwan195 Thailand33 Myanmar17 Philippines42 Singapore 43 Malaysia42 Indonesia33 Korea 172 Middle East 75 Aruba5 Brunei3

15. 15 Number of Outlets, by Region and by Brand (as at December 31, 2003) TotalGiordano core line Giordano Ladies Giordano Junior* Bluestar Exchange Aruba55000 Australia34 000 Brunei33000 Hong Kong75448023 Indonesia33 000 Japan13 000 Korea1721260460 Mainland China5815555318 Malaysia42 000 Middle East75 000 Myanmar17 000 Philippines42 000 Singapore4336070 Taiwan1951358745 Thailand33 000 Total1,3631,193216386 *Includes stand-alone outlets only

16. 16 Manufacturing Division (5.0 % of consolidated turnover) Supplied 28.0% of retail divisions requirement Turnover before elimination fell 9.7% Sales contracted during the SARS outbreak; especially sales to third-party Japanese customers Gross margins fell by 90 bps. Industry surplus capacity led to price competition resulting in lower margins Operating profit fell 22% New European client base

17. 17 Positive medium term global economic outlook 2004 to be a year of rejuvenation & growth Aim for higher sales & profit growth Mainland China Medium term earnings driver Besides flagship store in Shanghai, nation-wide store refurbishments Hong Kong Upbeat on reviving economy; concerned about speculative forces may inflate property costs Focus on enhancing brand image Outlook

18. 18 Outlook Taiwan Falling sales trend stopped Presidential election casts uncertainty To add 30 core line and 12 Bluestar outlets in 2004 Singapore Wide-spread wage cuts and Goods & Services Tax Hike Focus on service & brand differentiation; and market segmentation

19. 19 Outlook Korea Mixed economic outlook for 2004; worst is over Global Information platform enhances sales and inventory; closer ties with other markets Markdowns curtailed by better product cycle management Plan to open about 20 outlets Japan On the right track Operating model working and operating losses within budget Focus on Kansai area Projected breakeven during 2H