1. 0 March 2009 Annual Results Announcement 2008

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

3. 2 Financial Highlights

4. 3 (RMB '000)20082007Change (%) Turnover4,822,5963,655,613+31.9% Gross profit1,149,072813,860+41.2% Profit attributable to equity holders 699,380406,882+71.9% Basic EPS (RMB cents)56 cents33 cents+69.7% Final dividend (HK cents)20 cents16 cents+25.0% For the year ended 31 December Dividend payout ratio: 32.1%

5. 4 Sustainable Turnover & Profit Growth year ended 31 Dec RMB Mn Profit Attributable to Equity Holders year ended 31 Dec RMB Mn Turnover yoy:+31.9% yoy: +71.9% Satisfactory growth in turnover : -Continuous and significant increase in the sales of sports wear -Successful expansion into the global distribution market -Acceleration of the exploration of the domestic market

6. 5 Growing Margins year ended 31 Dec Gross Profit Improving gross profit margin: -Effective adjustment in product mix -Further enhancement of production efficiency Net profit margin increased by 3.4 pct, due to -One-off gain: RMB128.2 million recorded from the forward currency contracts -Strong organic growth: NP increased by 43.2% if excluding the one off gain from the forward currency contract year ended 31 Dec Net Profit RMB Mn 22.3% 23.8% 14.5% 11.1% RMB Mn 582 。 7 NP excl one off gain

7. 6 Turnover Breakdown by Products For the year ended 31 Dec 20082007Change RMB'000% % % By products Casual wear2,398,30449.7%2,248,98161.5%149,3236.6% Sports wear2,042,31542.3%1,165,19831.9%877,11775.3% Lingerie248,9295.2%147,9204.0%101,00968.3% Other knitting products133,0482.8%93,5142.6%39,53442.3% Total4,822,596100%3,655,613100%1,166,98331.9% Significant growth in sports wear contribution was attributable to continuous increase in OEM operation for renowned sports brands (Adidas, Nike and Puma) as a result of increasing proportion of high-end products. Increase in sales of casual wear as a result of improving product quality, and shorten delivery turnover Substantial Growth in sports wear and lingerie wear has enriched the Group’s product portfolio

8. 7 Stable growth contribution by Japan market The European market and other markets (Hong Kong, Korea and Australia) recorded impressive growth as a result of successful market diversification strategy and global market demand from certain customers Declining contribution by the US market as affected by economic turbulence Growth in domestic sales was driven by increasing demand of high-end sports apparel from renowned brand names Turnover Breakdown by Regions year ended 31 Dec 20082007Change RMB'000% % % Japan 2,437,304 50.5% 2,178,725 59.6%258,57911.9% Europe 751,44215.6%515,60214.1%235,840 45.7% United States 261,079 5.4% 298,830 8.2%(37,751)(12.6%) Other countries 455,497 9.5% 268,112 7.3%187,38569.9% Domestic market 917,274 19.0% 394,344 10.8%522,930132.6% Total 4,822,596100%3,655,613100% 1,166,983 31.9%

9. 8 Healthy Financial Position 20082007 Inventory turnover days7172 Debtor turnover days3126 Creditor turnover days2938 For the 12 months ended 31 Dec 20082007 Gearing ratio (debt to equity) (%)29%32%32% Cash and Cash Equivalent (RMB Mn)238233 Net assets (RMB Mn)2,8732,481 Total assets (RMB Mn)4,3213,904 For the 12 months ended 31 Dec

10. 9 Business Review

11. 10 Strengthened Management in Lean Manufacturing For the year ended 31 December 2005200620072008 Weaving and knitting (in tons) 30,78235,247 43,749 53,016 Dyeing and finishing (in tons) 38,00343,61053,36361,568 Printing and embroidery (in thousand pieces of fabric) 30,96663,79268,915106,310 Cutting and sewing (in thousand pieces of apparel) 77,69995,446112,446138,063 Continuous measures on technological reform, equipment upgrade and technology optimization have reduced our consumption on energy and water resource throughout our manufacturing process Effectively controlled its production cost by enhancing its internal control

12. 11 Casual wear customers Prominent progress on our strategy to fine-tune the customer base. Two renowned sports wear customers, ADIDAS and NIKE, account for [33]% (2007: 25%) of Group’s total turnover, with trend showing strong sales growth, effectively reduced Group’s reliance on single client. Growing contribution by lingerie, with growing number of lingerie customers. More Reasonable Customer Base Sports wear customers Lingerie and other customers

13. 12 Rational Layout of the Sales Markets Further consolidated and developed strengthen Japan market Japan Continuous rapid growth momentum of the domestic market, as a result of [increasing demand for renowned sports brand wear] Significant growth in the sales to other markets, which include Korea, Hong Kong, China and Australia due to [increasing demand for high end textile products] Rational layout of sale markets lowered the influence of a single market on the Group’s operation Removal of quotas system for China’s textile imports by EU in 2008, resulting in a strong sale growth of 45.7% from that market

14. 13 Strategies and Plans

15. 14 Optimization of Vertical Integration & Expansion of Production Capacity Expansion of production capacity Optimization of vertical integration Seek for other opportunities for the construction of new plant Optimize each production procedure, and strengthen the coordination and cooperation expand our garment production capacity by improving the efficiency of the existing equipment Ensure the full utilization of the productivity of the factories, further improvement of the production efficiency and completion of the new garment factory

16. 15 Enhancement of R&D & Focusing on higher-end textile products Increase the investments in product research and development and promote high-end development of products Fully leverage on the competitive edges of the Group in fabric developments  achieve optimal performance in sales of sports wear and lingerie Consolidate the competitiveness of its products in the consumer market by adhering to product diversification and improving the product quality Pls provide pics of some new (higher-end) textile products Casual wear Sports wear Lingerie wear

17. 16 Enhancement of Customer Service & Optimization of Structure of Production Base Ningbo Quzhou Anhui Cambodia Better ancillary services, including shortening the delivery turnover of the products and providing examination services of the products Focus on the production procedures with high added value, technology intensive, high resource consumption and high requirements to the ancillary facilities in the coastal area Shift certain of the cutting and sewing procedures to the labour intensive central area

18. 17 Europe Asia (incl the PRC, HK & Korea) US Expansion into global distribution markets Consolidate and further develop the market in Japan Concentrate on the development of the distribution market in the PRC Achieving a balanced development in the EU, the US, Korea and Australia Australia

19. 18 Mission The Most Competitive Knitwear Manufacturer In the World

20. 19 Open Forum