1. CCL Presentation – Garment Industry Update 20 Oct 06

2. Content Overview of Textile Industry in 2006 Overview of Textile Industry in 2006 Data of Export / Import by Countries Data of Export / Import by Countries Current Problem Facing China’s Textile Industry Current Problem Facing China’s Textile Industry Updates of Garment Industries in Other Regions Updates of Garment Industries in Other Regions Other Relevant Garment News Other Relevant Garment News Brief Update of News in PRD Region Brief Update of News in PRD Region

3. Overview of Textile Industry Export / Import by Countries (refer spreadsheet) Export / Import by Countries (refer spreadsheet) Problems Currently Faced by Textile Industry in 2006 (1) Problems Currently Faced by Textile Industry in 2006 (1) Too much investment, too little resources and demands Too much investment, too little resources and demands Quotas imposed by US and EU Quotas imposed by US and EU Companies move out of China (2) Companies move out of China (2) Policy and operational adjustment Policy and operational adjustment Reshuffling of industries (3) Reshuffling of industries (3)

4. Garment Industries in Other Regions

5. Shenyang Invest 2.8 billion Yuan to build International Textile & Fashion Town (1) Shenyang Invest 2.8 billion Yuan to build International Textile & Fashion Town (1) Jiangxi becomes the 7th largest textile and garment production base (2) Jiangxi becomes the 7th largest textile and garment production base (2) Strongest textile processing base in East China (3) Strongest textile processing base in East China (3) Garment Industries in Other Regions

6. Other Garment Related News Dunhuang Cotton Obtains Its Own ID Card Dunhuang Cotton Obtains Its Own ID Card HK Textile SME researching on EKID HK Textile SME researching on EKID http://webcast.tdctrade.com/060710_01/e_100.htm http://webcast.tdctrade.com/060710_01/e_100.htm http://webcast.tdctrade.com/060710_01/e_100.htm

7. Updates of PRD Region News Rapid Growth in Guangdong’s Private Sector Rapid Growth in Guangdong’s Private Sector Last year, private economy accounted for 39.6 per cent of the GDP of Guangdong Province Last year, private economy accounted for 39.6 per cent of the GDP of Guangdong Province In 2003, Guangdong accelerated development of the privately owned economy In 2003, Guangdong accelerated development of the privately owned economy Brought in 12 policies to help speed up the domestic-oriented economy. Brought in 12 policies to help speed up the domestic-oriented economy. Today Today 566,000 > Shandong Province 566,000 > Shandong Province 400,000 > Jiangsu Province. 400,000 > Jiangsu Province.

8. Next on Agenda Case Study Analysis of Supply Chain Management in Garment / Textile Industries in other countries Case Study Analysis of Supply Chain Management in Garment / Textile Industries in other countries Deeper analysis of garment / textile industries in other parts of China Deeper analysis of garment / textile industries in other parts of China Yangtze River Delta Yangtze River Delta Jiangxi Jiangxi Deeper understanding of EKID production system and Dunhuang’s Cotton ID Card Deeper understanding of EKID production system and Dunhuang’s Cotton ID Card