1. 2 nd Quarter 2004 Results Presentation A member of the Li & Fung (Retailing) Group 4 August 2004

2. 2 Hong Kong Total Retail Sales Value Year-on-year % Change Source: Census and Statistics Department, HKSAR Overall Jan - May 2004: +14% Supermarket: -1.9%

3. 3 Guangzhou Total Retail Sales Value Year-on-year % Change Source: Bureau of Statistics, Guangzhou Overall Jan – June 2004: +13%

4. 4 2 nd Quarter 2004 Results Presentation Agenda  2 nd Quarter 2004 Financial Results Highlights  2004 Outlook & Update  Questions & Answers

5. 5 2004 Financial Results Highlights Group Turnover – 2 nd Quarter + 15% No. of store – HK 166186172192 No. of store - China 2 7 4 12 12

6. 6 2004 Financial Results Highlights 164 Comparable Stores Sales – 2 nd Quarter + 3.4%

7. 7 Great Promotions Lucky Star Promotion Student Loyalty Promotion

8. 8 2004 Financial Results Highlights Group Turnover – June YTD + 15% No. of store – HK 166186172192 No. of store - China 2 7 4 12 12 727.2 836.5

9. 9 Improvement in Gross Margin / Other Income + 1.4%

10. 10 Upward Pressure on Store Operating Expenses

11. 11 2004 Financial Results Highlights Group Net Profit – 2 nd Quarter + 11%

12. 12 2004 Financial Results Highlights Group Net Profit – June YTD + 13% 23.8 26.9

13. 13 2004 Financial Results Highlights Net Profit as % of Sales – 2 nd Quarter

14. 14 2004 Financial Results Highlights Net Profit as % of Sales – June YTD

15. 15 Net Profit by Market 2 nd Qtr 2003 (HK$ M) 2 nd Qtr 2004 (HK$ M) Changes Hong Kong Market 18.720.9 + 2.2 China Market (2.1)(2.5) - 0.4 Total16.618.4 + 1.8

16. 16 2004 Financial Results Highlights Basic Earnings Per Share – 2 nd Quarter + 0.2 Cent

17. 17 2004 Financial Results Highlights Basic Earnings Per Share – June YTD + 0.4 Cent 3.6 4.0

18. 18 2 nd Quarter 2004 Financial Results Highlights 2 nd Qtr 2003 2 nd Qtr 2004 % Change Group Turnover (HK$ Million) 377.6432.8 + 15% Group Net Profit (HK$ Million) 16.618.4 + 11% Net Profit as % of Sales 4.4%4.2% - 0.2% Basic Earnings Per Share 2.5 Cents 2.7 Cents + 0.2 Cent Interim Dividend 1 Cent 1.25 Cents + 0.25 Cent

19. 19 Year-On-Year Quarterly Profitability Growth * * * * * Restated for income tax effect per SSAP No.12 (revised) and long service payment costs per SSAP No.34 (revised)

20. 20 2004 Update & Outlook

21. 21 2004 Update & Outlook Circle K Hong Kong – Quality Growth  Consumer sentiment continues to improve gradually  Easing deflation and unemployment  Upward pressure on rental  Maintain quality growth strategy  Existing number of stores: 193 Committed / In progress: 11 Forecast – end of 2004: 210

22. 22 2004 Update & Outlook Circle K China  Stores sales and P&L continue to improve  Existing number of stores:13 Committed / In progress: 3 Forecast – End of 2004:30  Speed up growth:  Organic growth – Doing it right  Entry into other cities  Aggressive growth strategies to come

23. 23 2004 Update & Outlook To Summarize  Hong Kong market improving gradually  Rental cost is a concern  China market – expansion strategy instead of P&L issue  Ready for aggressive growth  Customer brand preference, comparable store sales and profitability expected to continue trends of first half

24. 2 nd Quarter 2004 Results Presentation A member of the Li & Fung (Retailing) Group 4 August 2004