August 200 8

1. 08 Interim Results Announcement Annual Results Announcement August 2008

2. Agenda • Financial Highlights • Business Review • Strategies and Plans • Open Forum

3. Financial Highlights

4. Financial Highlights Six months ended 30 June

5. Sustainable Turnover Growth Turnover Profit Attributable to Equity Holders RMB Mn RMB Mn +35.7% 6 months ended 30 June 6 months ended 30 June • Stable growth in sales was attributable to: • Continuous and rapid increase in sales of sports wear • Globalized expansion in sales market with Mainland China playing a prominent role • Profit attributable to equity holders remained stable

6. Gross Profit Margin 6 months ended 30 June Stability of Gross Profit • Gross profit margin slightly decreased by 0.4 pct, due to • Continuous rapid appreciation of RMB • Reduction of export tariffs refund rate • Surge in the price of resources • Margin pressure was offset by improved internal efficiency and successful adjustment of product mix • Net profit margin decreased from 17.1% to 12.5% due to the increasing income tax expense and loss in transactions of derivatives instruments during the period

7. Turnover Breakdown by Products • Significant growth in sports wear contribution was attributable to substantial increase in OEM manufacturing for renowned sports brands (Adidas, Nike, Puma and Kappa) as a result of increasing proportion of high-end products. • Efficiently adjusted product portfolio and client base by reducing sales of lower profit margins products, leading to a decrease in casual wear sales • Lingerie business has delivered solid performance in response to the demand in Japan

8. Turnover Breakdown by Regions • Contribution from Japan decreased by 5.9% owing to adjustment in product and client base in order to maintain the satisfactory profitability level • Continuous growth in the Europe and other markets, including Hong Kong, Korea and Australia, was attributable to the market diversification strategy and the global market demand from certain customers • Domestic sales reported robust growth attributable to the demand of high-end sports wear and favorable impact of 2008 Beijing Olympics Game, driving demand for sports apparel from renowned brand names etc

9. Healthy Financial Position For the 6 months ended 30 June For the 6 months ended 30 June

10. Business Review

11. Garment sales contribution by domestic market RMB mn CAGR: +407% 6 monthsended 30 June Robust Growth of the PRC Market • Benefited from: • 2008 Beijing Olympics Games • Increasing demand of high-ended sports wear in PRC market • Availability of more sports wear products manufactured by the Group for the sales in domestic market for internationally renowned clients • Mitigated the impact on RMB appreciation & decrease of VAT refunds

12. Sports wear customers Casual wear customers Rationalization of Client Base • Two renowned sports wear customers, ADIDAS and NIKE, accounted for 32.5% (1H2007: 15.6%) of Group’s total turnover, while PUMA and KAPPA also began to contribute significantly in terms of sales • Successfully established a more diversified and risk-resistant customer structure • Continue to strengthen strategic partnership with the international renowned brands including Marks & Spencer, the largest chain store in the UK, and SEPTWOLVES, a renowned causal wear brand in the PRC, during the period

13. Strategies and Plans

14. Enhancement of Administrative Standards • Further adjust product portfolio, market layout and customer mix to enhance negotiating power in respect of orders received and improve profitability • Optimize manufacturing process through perfecting logistics, increasing fabric utilization rate and enhancing manufacturing efficiency of apparel production process in order to strengthen our overall competitiveness Achieve industry integration and structural adjustment to counteract the pressure arising from RMB appreciation and increasing production costs

15. Lingerie wear Sports wear Casual wear Flexible Deployment of Production Capacity • Intend to establish a woven garment processing factory in Zhejiang to diversify OEM services products apart from providing basic knitwear to customers, boosting the proportion of sports wear sales • Production capacity in the Cambodia manufacturing base will be adjusted in accordance with the demand of major customers to capture market trend

16. Further Expansion in Domestic Market & Balanced Development in Non-quota Markets • The US is expected to remove its transitional garments quota restriction by 2009 followed by the withdrawal of garment quota in the EU this year. The Group will develop in the American and European markets to secure the demand of high-ended orders from major customers • Greater efforts in increasing sales contribution from domestic market to mitigate the impact on RMB appreciation Europe US Asia

17. Improvement of Integrated Competitiveness Enhancement of administrative standards The Most Competitive Textile & Garment Manufacturer In the World Flexible deployment of production capacity Further expansion in domestic market & balanced development in non-quota markets

18. Open Forum