08 Annual Results Announcement Interim Results Announcement August

08 Annual Results Announcement Interim Results Announcement August 2008 0

Agenda Financial Highlights Business Review Strategies and Plans Open Forum 1

Financial Highlights 2

Financial Highlights Six months ended 30 June (RMB '000) 2008 2007 Change (%) 2, 107, 078 1, 552, 907 +35. 7 Gross profit 514, 862 385, 049 +33. 7 Profit attributable to equity holders 263, 646 265, 937 -0. 9 Basic EPS (RMB cents) 21 cents 21 cents - Turnover 3

Sustainable Turnover Growth Turnover RMB Mn Profit Attributable to Equity Holders RMB Mn 7% 5. +3 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 4

Stability of Gross Profit Margin 6 months ended 30 June 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 5

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 6 months ended 30 June 2008 2007 Change RMB'000 % Casual wear 954, 282 45. 3% 1, 082, 993 69. 7% (128, 711) (11. 9%) Sports wear 952, 731 45. 2% 356, 192 23. 0% 596, 539 167. 5% Lingerie 121, 151 5. 7% 71, 298 4. 6% 49, 853 69. 9% 78, 914 3. 8% 42, 424 2. 7% 36, 490 86. 0% 2, 107, 078 100% 1, 552, 907 100% 554, 171 35. 7% By products Other knitting products Total 6

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 6 months ended 30 June 2008 2007 Change RMB'000 % 1, 016, 746 48. 3% 1, 080, 189 69. 6% (63, 443) (5. 9)% 294, 306 14. 0% 183, 439 11. 8% 110, 867 60. 4% 93, 122 4. 4% 74, 655 4. 8% 18, 467 24. 7% Other countries 180, 127 8. 5% 94, 167 6. 1% 85, 960 91. 2% Domestic market 522, 777 24. 8% 120, 457 7. 7% 402, 320 334. 0% 2, 107, 078 100% 1, 552, 907 100% 554, 171 35. 7% Japan Europe United States Total 7

Healthy Financial Position For the 6 months ended 30 June 2008 2007 Inventory turnover days 90 94 Debtor turnover days 29 26 Creditor turnover days 38 49 For the 6 months ended 30 June 2008 2007 Gearing ratio (debt to equity) (%) 41. 4% 30. 9% Cash and Cash Equivalent (RMB Mn) 312. 0 118. 2 Net assets (RMB Mn) 2, 529 2, 281 Total assets (RMB Mn) 4, 620 3, 467 8

Business Review 9

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 Garment sales contribution by domestic market RMB mn 7% : +40 R G CA 6 months ended 30 June 10

Rationalization of Client Base Casual wear customers Sports wear customers Two renowned sports wear customers, ADIDAS and NIKE, accounted for 32. 5% (1 H 2007: 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 11

Strategies and Plans 12

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 13

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 Casual wear Sports wear Lingerie wear 14

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 highended orders from major customers Greater efforts in increasing sales contribution from domestic market to mitigate the impact on RMB appreciation US Europe Asia 15

Improvement of Integrated Competitiveness Enhancement of administrative standards Flexible deployment of production capacity Further expansion in domestic market & balanced development in non-quota markets The Most Competitive Textile & Garment Manufacturer In the World 16

Open Forum 17