Group Financial Highlights For the Six Months Ended

Group Financial Highlights For the Six Months Ended June 30 2004 2003 YOY change (%) 1, 858 929 1, 527 710 21. 7 30. 8 EBITDA (HK$M) 295 164 79. 9 Operating profit (HK$M) 235 92 155. 4 Profit before tax (HK$M) 243 109 122. 9 Profit attributable to shareholders (HK$M) 171 63 171. 4 Earnings per share (HK cents) 11. 8 4. 4 168. 2 Interim dividend per share - basic (HK cents) - special (HK cents) Dividend payout ratio (%) 4. 0 1. 5 166. 7 1. 5 3. 0 50. 0 46. 6 102. 3 54. 4 Turnover (HK$M) Gross profit (HK$M) 2

Selected Financial Highlights & Ratios For the Six Months Ended June 30 2004 2003 Net cash & bank balances (HK$M) 648 784* Cash inflow from operating activities (HK$M) 148 Inventory turnover on sales (days) 23 20 Current ratio (x) 2. 6 2. 9 Gearing on shareholder’s equity (%) 3. 8 3. 4 Gross margin (%) 50. 0 46. 5 Operating margin (%) 12. 6 6. 0 Net margin (%) 9. 2 4. 1 * As at December 31, 2003 3

Divisional Highlights For the Six Months Ended June 30 Turnover Division Manufacturing Others * Total 2003 (In HK$M) Retail And Distribution 2004 (In HK$M) 1, 739 1, 452 119 Operating Profit 2004 2003 (In HK$M) YOY Chg (%) 19. 8 200 64 212. 5 75 58. 7 34 26 30. 8 - - - 1 2 50. 0 1, 858 1, 527 21. 7 235 92 155. 4 YOY Chg (%) * Includes interest income and intra-division eliminations 4

Retail and Distribution Division For the Six Months Ended June 30, 2004 Singapore 11% (11%) Malaysia 4% (4%) Taiwan 20% (19%) Others 14% (15%) Australia 5% (4%) Hong Kong 22% (22%) Mainland China 24% (25%) Note: 1 H 03’s figures in brackets Retail and Distribution Turnover Composition by Market 5

Retail and Distribution Division (Cont’d) For the Six Months Ended June 30, 2004 Giordano Ladies 4% (4%) Bluestar Exchange 9% (7%) Giordano core line + Junior 87% (89%) Note: 1 H 03’s figures in brackets Retail and Distribution Turnover Composition by Brand 6

Retail and Distribution Division (Cont’d) Brand Statistics Giordano core line + Junior Retail Turnover Growth Giordano Ladies Bluestar Exchange 17. 1 34. 5 40. 7 (YOY % Chg) • Total comparable store sales 15. 3% • Total comparable store gross profit 20. 5% 7

Retail and Distribution Division Market Review All markets’ turnover grew by double-digit YOY due to low comparison bases resulted from SARS in 2003. (In HK$M) (Six Mths ended June 30) Percentage Change (%) Comp. Store Sales Growth (%) 2004 2003 Mainland China 420 363 15. 7 7. 7 Hong Kong 384 316 21. 5 18. 8 Taiwan 341 281 21. 4 8. 0 Singapore 195 155 25. 8 26. 9 Other Markets & Distribution Sales 399 337 18. 4 9. 9* 1, 739 1, 452 19. 8 TOTAL *Other market’s comp. store sales growth 8

Retail and Distribution Division Market Review (cont’d) 70 10 30 9

Number of Outlets, by Region and by Brand (as at June 30, 2004) Total Giordano core line Giordano Ladies Giordano Junior* Bluestar Exchange Australia 35 35 0 0 0 Hong Kong 84 50 8 0 26 Indonesia 39 39 0 0 0 Japan 19 19 0 0 0 Korea 172 129 0 43 0 Mainland China 615 586 6 3 20 Malaysia 46 46 0 0 0 Middle East 74 74 0 0 0 Myanmar 17 17 0 0 0 Philippines 40 40 0 Singapore 45 37 0 8 0 Taiwan 211 140 8 7 56 Thailand 41 41 0 0 0 Others 12 12 0 0 0 1, 450 1, 265 22 61 102 Total *Includes stand-alone outlets only 10

Manufacturing Division For the Six Months Ended June 30 2004 2003 YOY change (%) Sales including internal sales (HK$M) 405 301 34. 6 Sales to external customers (HK$M) 119 75 58. 7 Percentage of Retail and Distribution’s total purchase 29% N. A. Contribution to the Group’s operating profit 14% 28% N. A. • • Sales to Group companies accounted for 71% of divisional sales, down from 75% in 1 H 03 Secured new clients from US and Europe, reducing reliance on Japanese market 11

Outlook • • All major markets recovered from SARS Consolidated sales and gross profits rose 5. 6% and 11. 5%, respectively, compared against 1 H 02 Optimistic with outlook Improvement trend in Taiwan; focus on recapturing market share Performance is picking up in Korea; major turnaround in 2005 Higher CAPEX to fund store refurbishment in the 2 H Impress customers with high quality products instead of discount offering 12

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