A member of the Li & Fung (Retailing) Group

1. 2004 Annual Results Presentation A member of the Li & Fung (Retailing) Group 3 March 2005

2. 2004 Hong Kong Retail Sales ValueYear-on-year % Change 2004 Total : + 10.8% Source: Census and Statistics Department, HKSAR

3. 2004 Guangzhou Retail Sales Value Year-on-year % Change 2004 Total : + 12% Source: Bureau of Statistics, Guangzhou

4. 2004 Annual Result PresentationAgenda • 2004 Financial Results Highlights • 2005 Update & Outlook • Questions & Answers

5. 2004 Financial Results HighlightsGroup Turnover + 15.2 %

6. 2004 Financial Results HighlightsGroup Net Profit + 10.3% * * * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised)

7. 2004 Financial Results HighlightsNet Profit as % of Turnover - 0.2% * * * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised)

8. 2004 Financial Results HighlightsBasic Earnings Per Share + 0.9 Cent * * * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised)

9. 2004 Financial Results HighlightsGross Margin / Other Income* + 0.5% * Exclude Interest Income

10. 2004 Financial Results HighlightsStore Operating Expenses 24.0 23.3 22.7 22.1

11. 2004 Advertising & Promotions Bidding Promotion Kung Fu Promotion Lucky Star Promotion OK200 Promotion

12. 2004 Achievements Total Distribution: 1,112,000 Tickets Period of Voting: 1 - 7 November 2004

13. 2004 Achievements Service Category Leader of Supermarket / Convenience Stores Category (March – May 2004) of HKRMA Mystery Shoppers Programme Good People Management Award 2004 by Labour Department Bronze Award of Good Housekeeping Plan 2004 by Occupational Safety & Health Council Caring Company Award 2004/2005

14. 2004 Financial Results Highlights

15. 2005 Update & Outlook

16. 2005 Hong Kong Retail Environment • Gradual improvement in local consumers’ spending • Increasing competition • Increasing rental cost pressure

17. Hong Kong Market – Key Strategies • Build competitive edge & store network • Efficiency and effectiveness of supply chain • Pillars to support China growth • 245 stores, $2.0 billion sales, $48 million capex

18. Pearl River Delta2005 Retail Environment • Income per capita and savings continue to increase • Inflation will continue to be driven by the pricing of primary materials, energy and logistics • Growth in internal consumption will remain healthy • Stable rental but upward pressure on labour and utility costs

19. China Market – Key Strategies • Major change in strategy – building store network as top priority and taking the risk • Dual brand, multiple cities within the Pearl River Delta to expedite growth • Focus on Pearl River Delta before expanding to other regions • Aggressively look for non-organic growth opportunities in Southern China market and other regions • 80 stores, $100 million sales, $35 million capex

20. Dongguan Sun-High Convenience Store Chain • A chain of about 80 franchised convenience stores in Dongguan • Annualized sales of about RMB80 million • Signed investment agreement • CRA owns 60% of enlarged capital • Conditional on obtaining government approval • Certain conditions to be fulfilled by existing shareholders • Shorten learning curve on franchising in China • Additional brand to speed up network expansion • Little impact on 2005 profitability or cash flow

21. 2005 Update & OutlookTo Summarize • Better consumer spending but upward pressure on operating expenses in HK • Change strategies for establishing market leadership in Southern China • Accept the risk • Fast growth of store network • Invest in infra-structure support & operating loss • Continue to evaluate non-organic growth opportunities