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Corporate Presentation May 2006

Warderly International Holdings Limited. Corporate Presentation May 2006. Contents. 1. Company Introduction. 2. Business Review. 3. Production Plant. 4. Distribution & Marketing. 5. Future Plan & Products. 6 . Financial Summary. 1989 Established by Mr. K.W. Yeung, Chairman

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Corporate Presentation May 2006

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  1. Warderly International Holdings Limited Corporate Presentation May 2006

  2. Contents 1. Company Introduction 2. Business Review 3. Production Plant 4. Distribution & Marketing 5. Future Plan & Products 6. Financial Summary

  3. 1989 Established by Mr. K.W. Yeung, Chairman A fully integrated ODM / OEM manufacturer offering wide variety of electrical appliances 2002 Listed on the Main Board of Hong Kong Stock Exchange (SEHK: 607) 2003 The Cathay Investment Fund Limited (Irish Stock Code: CATHAYI ID) acquired 10% of Warderly’s shares 2005 Appointed as authorized distributor of global household appliances brand “GE Appliances” in Hong Kong and Macau 2006 Will complete production expansion Company Snapshots Introduce advanced home and vehicle security alarm devices and kitchen appliances to diversify product portfolio Arranged a syndicated loan of HK$200 million for factory expansion and financial working capital

  4. Corporate Mission To be the leading integrated ODM / OEM manufacturer offering a wide variety of electronic and electrical appliances for worldwide markets

  5. Business Review • Fans & Heaters Division: • Quartz Heater experienced a strong sales growth  • Product diversification: Introducing new fan and heater products • Successfully launch the panel heater models which receive a very positive response from northern European markets • Enhance the product portfolio to eliminate the adverse impact brought by rise in raw material price • Fan and heater products accounted for 94% of the overall Group’s turnover in 2004 / 2005

  6. GM 15-25% New Model New Partner New Client Sales Q1 – Q3 Partnered with Triangle Design House (French designer) to develop a total of 21 new models • Attracted • new customers like • Westbend, • Black & Decker, Bettycrocker, Bush, Siplec Achieved total sales of 20M for Q1 to Q3 (10% of total sales) Gross margin: 15-25% (depends on product type) • Launched • 15 new models • including • coffee makers, • blenders, • food processors • & • hand mixers Business Review • Kitchen Appliances Division:

  7. GM 8-12% Primary Objective Re- positioning Car Alarm • Introducing electronics elements to existing • home appliances • and • broadening product range Repositioning strategy to switch emphasis from home electronics products to specialized electronics products, the latter provides stable margin • To manufacture transponders for • an Australian technology • company • (used for vehicle & home security, vehicle tracking & monitoring) • Contract value • exceeds • HK$ 70 million Gross margin: 8-12% (depends on product type) Business Review • Electronics Products Division: Sales Achieved total sales of 6M for Q1 to Q3

  8. Business Review • Distribution Division: StartODM business with Hong Kong major importers such as Li & Fung, Shun Hing Further expand distribution of in-house brands “Regent” & “Homemax” products Due to late shipment of GE products, sales actually commenced in Q2 Achieved sales of 9M for Q1 to Q3 Gross margin: 15-20% (depends on product type) In the process of building up local distribution network including retails shops like GOME, CMK, Chung Yuen, SOGO, UNY, Best Denki (over 100 outlets) Signed GE authorized distributor contract in January 2005

  9. Production Plant • Dongguan Plant Assembly lines Fans & Heaters x 5 Specialized electronics products x 4 Automatic powder coating x 3 No. of production staff & workers 2000 Total Gross Floor Area 93,500m2

  10. ISO 9001 (Year 2000) successfully renewed Also obtained 3C Certificate for fans & heaters (available for sales In the PRC) Air-to-Air Heat Recovery Ventilator was accredited 2005 Hong Kong Industries Awards: Machinery and Equipment Design: Certification of Merit Attestation for conducting on-site witness projects (TUV Hong Kong Ltd.) Certification of Qualification (UL Int’l Ltd.) to participate in Underwriters Laboratories Inc. Witnessed Test Data Program Certifications Dongguan Ka Lee Electrical Co. Ltd.

  11. Certifications Air-to-Air Heat Recovery Ventilators New Invention Anti-Virus Ozone Ventilators Co-invented & developed by Newstarts (HK) Ltd. (sub. of CityU) Mosquito Traps Use TiO2, Co2, PCO to capture mosquitoes

  12. Fan Guard Production Metal Processing photo photo photo Motor Assembly Plastic Injection Semi-automatic Painting photo photo photo Coil Insertion Molding Product Assembly photo photo photo Coiling Vertically Integrated Production Process

  13. Flexibility Combats Seasonality Spring Fans; Kitchen Appliances; Mosquito Traps; BBQ Grills Flexible Manufacturing Base Flexible Manufacturing Base Winter Heaters; Kitchen Appliances; BBQ Grills; EMS Summer Fans; Kitchen Appliances; Mosquito Traps Autumn Heaters; Kitchen Appliances; BBQ Grills; EMS

  14. Robust R&D • Over 200 professional engineers, product designers and technical staff • More than 50 new products and/or models launched in every year • New product divisions: • Kitchen ware products • Consumer electronics products

  15. Diversified & Global Clientele

  16. Marketing & Promotion Local Exhibitions: Hong Kong Electronics Fair 2006 Hong Kong Spring Fair 2006 PRC Exhibitions: Canton Fair 2006 3C Expo 2005 Overseas Exhibitions: 2005 ISH Frankfurt Hong Kong In Style, Dubai 2006 Domotechnica 2006

  17. Product Diversification Market Expansion • Electrical appliances products range from electrical fans to heaters, oil-filled radiators, as well as other household kitchen appliances • Brand names including “Regent”, “Housely” and “Homemax” • Introduce electronic-based elements to home appliances products • Manufacture specialized electronic products such as security alarm devices for vehicle tracking and monitoring • Introduce new models for heaters (quartz heaters and panel heaters) • Continuously strengthen overseas market presence in Europe, North America, etc • Expand sales and distribution network to new emerging markets such as the PRC and other Asian countries • Appointed as the Authorized Distributor of “GE Appliances” in HK & Macau Future Plan: Growth Strategy

  18. BBQ Grill Automatic Towel Dispenser Kitchen Appliances (21 new models) Car Alarm Transponders Wet & Dry Vacuum Cleaner Future Products

  19. Financial Summary May 05 – Jan 06 May 04 – Apr 05 May03 – Apr04 (HK$’000) 337,499 Turnover 202,118 291,219 132,245 Gross profit 78,891 129,272 58,014 29,318 67,883 Profit attributable to shareholders 13.7 HK cents Basic EPS 6.95 HK cents 17.2 HK cents Total dividend per share 1.5 HK cents - Interim - HK cents 1.2 HK cents 2.5 HK cents - Final N/A 4.0 HK cents 29.2% Dividend payout N/A 30.2%

  20. Turnover by Markets Australia & New Zealand 1% May 03 - Apr 04 Australia & New Zealand 4% May 04 - Apr 05 North America 9% Others 1% North America 14% Others 1% Asia (inl. the PRC) 26% Asia (inl. the PRC) 27% Europe 60% Europe 57% May 05 – Jan 06 North America 13% Asia (inl. the PRC) 25% Europe 62%

  21. Turnover by Products Air Ventilation Products 2% May 03 - Apr 04 Apr 04 - May 05 Motor 3% Motor 2% Others 1% Convention Heater, Quartz Heater & Oil-filled Radiator 36% Convention Heater, Quartz Heater & Oil-filled Radiator 38% Others 2% Fan 60% Fan 56% May 05 – Jan 06 Electronics3% Local Distribution 4% Others 2% Kitchenware 10% Fan 27% Convention Heater, Quartz Heater & Oil-filled Radiator 54%

  22. Solid Financial Foundation (HK$’000) 30 April 2005 31 October 2005 127,227 Cash position 98,723 1.91X Current ratio 2.05X 122 days Inventory turnover days 190 days 88 days Debtors turnover days (Exclude discount bills) 90 days 14% Gearing ratio(Net Debts/ Total Assets) 27% 315,117 Net asset value 325,010

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