1. 1st Quarter 2004 Results Presentation
A member of the Li & Fung (Retailing) Group
5 May 2004

2. 1st Quarter 2004 Results Presentation Agenda
1st Quarter 2004 Financial Results Highlights
2004 Outlook & Update
Questions & Answers

3. 1st Quarter 2004 Financial Results Highlights Group Turnover
+ 15%
No. of store – HK
166
186
168
190
No. of store - China 2 7 4 10

4. 1st Quarter 2004 Financial Results Highlights 164 Comparable Stores Sales
+ 5.3%

5. Top 5 Contributing Categories
% of Total Increase
Food Services 25%
Confectionery and Snacks 19%
Grocery 19%
Newspaper and Magazines 18%
Packaged Beverages 11%

6. Top 5 Contributing Categories
Ding-A-Meal Promotion
Weekly Weekend
Specials Promotion
Newspaper/Magazine
Promotion

7. China Market Showing Strong Sales Growth
+ 10%
+ 254%
No. of store: 2
No. of store: 4 10

8. China Market Showing Strong Sales Growth
Hot & In Buns
$2 Trial
Student Program
Flagship Store
Promotion

9. Slight Increase in Gross Margin / Other Income
+ 0.3%

10. Tight Control of Store Operating Expenses
24.2%
23.9%
23.3%
22.7%

11. 1st Quarter 2004 Financial Results Highlights Group Net Profit
+ 17%

12. 1st Quarter 2004 Financial Results Highlights Net Profit as % of Sales

13. Net Profit by Market 1st Qtr 2003 (HK$ M) 1st Qtr 2004 Changes
Hong Kong Market
9.5
10.8
1.3
China Market
(2.2)
(2.3)
(0.1)
Total
7.3
8.5
1.2

14. 1st Quarter 2004 Financial Results Highlights Basic Earnings Per Share
+ 0.2 Cent

15. 1st Quarter 2004 Financial Results Highlights
1st Qtr 2003
1st Qtr 2004
% Change
Group Turnover (HK$ Million)
349.6
403.7
+ 15%
Group Net Profit (HK$ Million)
7.3
8.5
+ 17%
Net Profit as % of Sales
2.1% -
Basic Earnings Per Share
1.1 Cents
1.3 Cents
+ 0.2 Cent

16. 2004 Update & Outlook

17. 2004 Update & Outlook Circle K Hong Kong – Quality Growth
Overall consumer sentiment improving
Deflation and high unemployment
Upward pressure on rental
Prudent in committing to high rental
Maintain quality growth strategy

18. 2004 Update & Outlook Circle K China
Continue to promote awareness of brand, build brand preference, and expand customer base
Speed up new store growth
30 – 40 stores by end of 2004
Entry into other cities in Pearl River Delta
Continue to pursue option of acquisition

19. 2004 Update & Outlook To Summarize
Prudent and quality growth in Hong Kong
Aggressive growth in China
Getting ready for non-organic growth
Plenty of work to do on Hong Kong market profitability growth