Ocean Grand Chemicals Holdings Limited Annual Results for the Year Ended 31 March 2003

1. Ocean Grand Chemicals Holdings Limited Annual Results for the Year Ended 31 March 2003

2. Contents • Financial Highlights • Corporate Profile • Competitive Strengths • Future Plans & Strategies • Mission

4. Financial Highlights (1) Note 1 – calculated based on 475,000,000 shares, the number of shares in issue immediately after the listing of the Company’s shares

5. Financial Highlights (2)

6. CAGR 68% Turnover (HK$’000) 434,202 450,000 400,000 350,000 300,000 250,000 159,946 200,000 150,000 92,643 90,985 100,000 50,000 0 2000 2001 2002 2003 Year ended 31 March

7. Turnover by Product Category Palladium saltssubcontracting 18.8% Palladium salts subcontracting 13.4% Rhodiumsalts 6.2% Gold salts 38.9% Silver salts 0.2% Sliver salts 8.6% Palladium salts 42.0% Gold salts 30.1% Palladium salts 41.7% For the year ended 31 March 2002 For the year ended 31 March 2003

8. 60,000 50,000 40,000 30,000 20,000 10,000 0 2000 2001 2002 2003 Profit Attributable to Shareholders 63,689 (HK$’000) CAGR 72% 23,193 19,480 12,473 Year ended 31 March

9. Profit Margin (%) (%) Gross Profit Margin Net Profit Margin 30 30 19.8% 18.4% 20 20 14.7% 14.5% 10 10 0 0 2002 2002 2003 2003 Year ended 31 March Year ended 31 March

11. Principal Business • The Group principally engages in the processing, production and trading of Precious Metal Electroplating Chemicals (PME salts) in the PRC and Hong Kong Principal Business

12. Products – 4 PME Salts Products Used in the electroplating of: Jewellery, watch cases and bands, spectacles frames, fashion accessories & semiconductor devices Gold salt KAu(CN)2 Silver salt KAg(CN)2 Jewellery, hardware and semi-conductor devices Palladium salt Pd(NH3)2Cl2 Spectacles frames, writing utensils, edge card connectors and semi-conductor devices Rhodium sulphate Rh2(SO4)3 Watch parts, electronic devices, optical instruments, chemical equipment

13. Precious Metal Electroplating (PME) Chemicals Industry Jewellery, genuine & imitation Decorative Clocks and watches Precious metal electroplating chemicals Fashion accessories, ornaments & lighting equipment Industrial Printed circuit boards (PCB) Semi-conductor

14. Applications PCB Palladium plated watches and bracelets Connector Jewellery Optical Glass Fiber Decorative Ornaments Clocks Watches

15. Production Facilities Hong Kong • Hunghom Factory • Product: gold salt • Area: 10,000 sq feet • Max. annual production capacity: 7,000 kg PRC • Zhuhai Factory, Nan Bing Technology and Industrial Park • Products: silver salt, palladium salt and rhodium sulphate • Area: 43,000 sq feet • Max. annual production capacity: silver salt – 160,000kg, palladium salt – 6,000 kg, rhodium sulphate – 200 kg

16. Corporate Milestones 1991 • Founded by Mr. Yip Kim Po • commenced trading and manufacturing of gold salts in Hong Kong 1999 • injected into Ocean Grand Holdings Limited 2000 • commenced establishment of Zhuhai factory 2002 • expanded production facilities in Hong Kong 2003 • Zhuhai factory commenced operation in January • Listed on the Hong Kong Stock Exchange on 30 June

17. Business Models • Reselling other suppliers’ PME salts to customers under own brand name Trading Manufacturing • Selling PME salts produced in-house Processing • Processing precious metal provided by customers into PME salts for the customers

19. Competitive Strengths Position in market Highentry barriers OGC Production & deliverysystem Dedicated management

20. Competitive Strengths • Pearl River Delta region – light industries highly developed • Geographical advantage of a PRC production base – proximity to end-users and electroplaters • No other large scale electroplating chemicals manufacturer in the PRC Position in Market

21. Competitive Strengths High entry barriers Barriers Complicated productiontechnology Capital-intensive Strict regulations on environmental protection • OGC's strengths • Technology know-how to ensure consistency of product quality • Possesses well-trained and experienced technical staff • Huge capital investment: over HK$100 million in production facilities • Zhuhai Government took 18 months to approve the design of our Zhuhai factory. Any competitors will need to go through the same process. OGC has a first mover advantage

22. Competitive Strengths • Short production cycles (~ 24 hours) enable flexible production schedule and minimization of inventories • Ability to meet urgent orders of customers Flexible production and delivery system  Minimize inventories and capital locked up

23. Competitive Strengths Experienced and dedicated management • Mr. Yip Kim Po • co-founder and chairman • over 20 years of experience in business administration • mainly responsible for strategic planning and policy setting • Mr. Hui Ho Ming, Herbert • deputy chairman and executive director • over 20 years of experience in securities regulations and corporate management • Mr. Yao Zongren • executive director • over 30 years of experience in chemical engineering work • responsible for overall strategic planning, policy making, business development and overall supervision

25. Future Plans & Strategies Extend marketing and distribution network in the PRC Enhance value-added services Premier supplier of top-quality electroplating chemicals Strengthen the marketing of "Kenlap" Broaden product scope Expand R&Dcapabilities

27. Mission To establish Kenlap as the leading brand name for precious metal electroplating chemicals in the PRC and Hong Kong

28. Thank You