2 nd Quarter 2004 Results Presentation A member of the Li & Fung (Retailing) Group 4 August 2004

2 Hong Kong Total Retail Sales Value Year-on-year % Change Source: Census and Statistics Department, HKSAR Overall Jan - May 2004: +14% Supermarket: -1.9%

3 Guangzhou Total Retail Sales Value Year-on-year % Change Source: Bureau of Statistics, Guangzhou Overall Jan – June 2004: +13%

4 2 nd Quarter 2004 Results Presentation Agenda  2 nd Quarter 2004 Financial Results Highlights  2004 Outlook & Update  Questions & Answers

Financial Results Highlights Group Turnover – 2 nd Quarter + 15% No. of store – HK No. of store - China

Financial Results Highlights 164 Comparable Stores Sales – 2 nd Quarter + 3.4%

7 Great Promotions Lucky Star Promotion Student Loyalty Promotion

Financial Results Highlights Group Turnover – June YTD + 15% No. of store – HK No. of store - China

9 Improvement in Gross Margin / Other Income + 1.4%

10 Upward Pressure on Store Operating Expenses

Financial Results Highlights Group Net Profit – 2 nd Quarter + 11%

Financial Results Highlights Group Net Profit – June YTD + 13%

Financial Results Highlights Net Profit as % of Sales – 2 nd Quarter

Financial Results Highlights Net Profit as % of Sales – June YTD

15 Net Profit by Market 2 nd Qtr 2003 (HK$ M) 2 nd Qtr 2004 (HK$ M) Changes Hong Kong Market China Market (2.1)(2.5) Total

Financial Results Highlights Basic Earnings Per Share – 2 nd Quarter Cent

Financial Results Highlights Basic Earnings Per Share – June YTD Cent

18 2 nd Quarter 2004 Financial Results Highlights 2 nd Qtr nd Qtr 2004 % Change Group Turnover (HK$ Million) % Group Net Profit (HK$ Million) % Net Profit as % of Sales 4.4%4.2% - 0.2% Basic Earnings Per Share 2.5 Cents 2.7 Cents Cent Interim Dividend 1 Cent 1.25 Cents Cent

19 Year-On-Year Quarterly Profitability Growth * * * * * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised)

Update & Outlook

Update & Outlook Circle K Hong Kong – Quality Growth  Consumer sentiment continues to improve gradually  Easing deflation and unemployment  Upward pressure on rental  Maintain quality growth strategy  Existing number of stores: 193 Committed / In progress: 11 Forecast – end of 2004: 210

Update & Outlook Circle K China  Stores sales and P&L continue to improve  Existing number of stores:13 Committed / In progress: 3 Forecast – End of 2004:30  Speed up growth:  Organic growth – Doing it right  Entry into other cities  Aggressive growth strategies to come

Update & Outlook To Summarize  Hong Kong market improving gradually  Rental cost is a concern  China market – expansion strategy instead of P&L issue  Ready for aggressive growth  Customer brand preference, comparable store sales and profitability expected to continue trends of first half

2 nd Quarter 2004 Results Presentation A member of the Li & Fung (Retailing) Group 4 August 2004