1. August 2008 Annual Results Announcement 08 Interim Results Announcement

2. 1 Agenda Financial Highlights Business Review Strategies and Plans Open Forum

3. 2 Financial Highlights

4. 3 (RMB '000)20082007Change (%) Turnover2,107,0781,552,907+35.7 Gross profit514,862385,049+33.7 Profit attributable to equity holders263,646265,937-0.9 Basic EPS (RMB cents) 21cents - Six months ended 30 June

5. 4 6 months ended 30 June RMB Mn Sustainable Turnover Growth Profit Attributable to Equity Holders 6 months ended 30 June RMB Mn Turnover +35.7% 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

6. 5 6 months ended 30 June Gross Profit Margin Stability of Gross Profit 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

7. 6 Turnover Breakdown by Products 6 months ended 30 June 20082007Change RMB'000% % % By products Casual wear954,28245.3%1,082,99369.7%(128,711)(11.9%) Sports wear952,73145.2%356,19223.0%596,539167.5% Lingerie121,1515.7%71,2984.6%49,85369.9% Other knitting products78,9143.8%42,4242.7%36,49086.0% Total2,107,078100%1,552,907100%554,17135.7% 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

8. 7 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 Turnover Breakdown by Regions 6 months ended 30 June 20082007Change RMB'000% % % Japan 1,016,746 48.3%1,080,18969.6%(63,443)(5.9)% Europe 294,30614.0% 183,43911.8% 110,867 60.4% United States 93,122 4.4% 74,655 4.8%18,46724.7% Other countries 180,127 8.5%94,1676.1%85,96091.2% Domestic market 522,777 24.8%120,4577.7%402,320334.0% Total 2,107,078100%1,552,907100% 554,171 35.7%

9. 8 Healthy Financial Position 20082007 Inventory turnover days9094 Debtor turnover days2926 Creditor turnover days3849 For the 6 months ended 30 June 20082007 Gearing ratio (debt to equity) (%)41.4%30.9% Cash and Cash Equivalent (RMB Mn)312.0118.2 Net assets (RMB Mn)2,5292,281 Total assets (RMB Mn)4,6203,467 For the 6 months ended 30 June

10. 9 Business Review

11. 10 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 6 months ended 30 June Garment sales contribution by domestic market CAGR: +407% RMB mn

12. 11 Sports wear customers Casual wear customers Two renowned sports wear customers, ADIDAS and NIKE, accounted for 32.5% (1H2007: 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 Rationalization of Client Base

13. 12 Strategies and Plans

14. 13 Achieve industry integration and structural adjustment to counteract the pressure arising from RMB appreciation and increasing production costs 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 Enhancement of Administrative Standards

15. 14 Lingerie wear Sports wear Casual wear 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

16. 15 Europe Asia US 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 high- ended orders from major customers Greater efforts in increasing sales contribution from domestic market to mitigate the impact on RMB appreciation

17. 16 Improvement of Integrated Competitiveness The Most Competitive Textile & Garment Manufacturer In the World Enhancement of administrative standards Flexible deployment of production capacity Further expansion in domestic market & balanced development in non-quota markets

18. 17 Open Forum