1. PwC *connectedthinking 首次上市集資新聞簡報會 2004年回顧與2005年預測 IPO Press Briefing PwC IPO Market Year End Review for 2004 and Outlook for 2005 孫寶源先生 / 陳朝光先生 Richard Sun / Edmond Chan 30-12-2004

2. PricewaterhouseCoopers Page 2 Year 2004 Review (Estimate up to 31 December 2004)

3. PricewaterhouseCoopers Page 3 Number of Listed Companies No. of companies Main BoardGrowth Enterprise Market Year

4. PricewaterhouseCoopers Page 4 Number of Newly Listed Companies No. of companies Main Board Growth Enterprise Market Year No. of companies Main Board :HK/OthersH-Shares Growth Enterprise Market :HK/Others 43 31 60 46 49 47 57 27 21

5. PricewaterhouseCoopers Page 5 Number of New Listings – by month No. of IPOs vs Index Month No. of IPOs * Hang Seng Index and GEM Index as at 21 December 2004 Index 2 4 1 3 5 1 7 2 1 8 4 Main BoardGEMHang Seng IndexGEM Index(x5) 4 2 2 2 1 3 4 3 10 1

6. PricewaterhouseCoopers Page 6 Number of New Listings – by quarter Main BoardGrowth Enterprise Market 2003: 2004: 2003: 2004: 9 8 15 7 5 8 77 Month HK/Others H-Shares HK/Others H-Shares 15 No. of companies 6 9 9 17 5 1

7. PricewaterhouseCoopers Page 7 IPO vs Other Equity Funds Raised Main Board : IPO Funds Raised Other Equity Funds Raised Growth Enterprise Market : IPO Funds Raised Other Equity Funds Raised * Total equity funds raised for 2004 was up to 15 December 2004 Main Board Year HK$ billion Growth Enterprise Market 451 59 101 209 * Year HK$ billion 16 6 9 5 5 * 261

8. PricewaterhouseCoopers Page 8 IPO Funds Raised Total market turnover Funds raised 132 26 52 * * Total market turnover of 2004 was up to 15 December 2004 Year 59 HK$ billion 95

9. PricewaterhouseCoopers Page 9 IPO Funds Raised – further analysis 92.7 2.7 2 57 HK$ billion Year 2004 Year 2003 Main Board HK/Others H-Shares HK/Others H-Shares GEM Year 2004 Main Board HK/Others H-Shares GEM Year 2003 H-Shares

10. PricewaterhouseCoopers Page 10 Average Deal Size of New Listings Year 2004 Year 2003 HK$ million * Excluding introductions which did not raise funds: Year 2004 – Main Board: 3, GEM: N/A ; Year 2003 – Main Board: 7, GEM: 1 * *

11. PricewaterhouseCoopers Page 11 Average Deal Size of New Listings – excluding H-Shares Year 2004 Year 2003 HK$ million * * Excluding introductions which did not raise funds: Year 2004 – Main Board: 3, GEM: N/A ; Year 2003 – Main Board: 7, GEM: 1 *

12. PricewaterhouseCoopers Page 12 Average Deal Size of New Listings – excluding highest IPO funds raised candidates Year 2004 Year 2003 HK$ million * * Excluding introductions which did not raise funds: Year 2004 – Main Board: 3, GEM: N/A ; Year 2003 – Main Board: 7, GEM: 1 * ^ Excluding companies that raised funds of more than HK$ 10 billion: Year 2004 – Ping An Insurance, SMIC and China Netcom ; Year 2003 – China Life # Excluding companies that raised funds of more than HK$ 1 billion: Year 2004 – TOM Online; Year 2003 – N/A # # ^ ^

13. PricewaterhouseCoopers Page 13 Profitability Year 2004 Year 2003 * Investment companies

14. PricewaterhouseCoopers Page 14 P/E Multiple – Fully Diluted 6-7.99 10-14.99 20-29.99 Main Board No. of companies Investment Company Introduction P/E Multiple No Profit 8 15 4 11 1 5 HK/Others H Shares 8-9.99 15-19.99 3 2

15. PricewaterhouseCoopers Page 15 P/E Multiple – Fully Diluted 6-7.99 10-14.99 >100 Growth Enterprise Market P/E Multiple No Profit No. of companies 30-39.99 5 4 HK/Others H Shares 15-19.99 8-9.99 8 1 1 1 1 1

16. PricewaterhouseCoopers Page 16 Year 2005 Forecast

17. PricewaterhouseCoopers Page 17 Forecast of Year 2005 Number of new listings Year 2005 (estimated) Year 2004 Year 2005 (estimated) Year 2004 No. of companies HK$ billion Funds raised

18. PricewaterhouseCoopers Page 18 Forecast of Year 2005 Main Board  Number of new listings ： 55  Funds to be raised: HK$135 billion  Projected average P/E: 10 - 15

19. PricewaterhouseCoopers Page 19 Forecast of Year 2005 Growth Enterprise Market  Number of new listings ： 25  Funds to be raised ： HK$3 billion  Projected average P/E ： 10 - 15

20. PricewaterhouseCoopers Page 20 pwc