PROSPECT

The GDP growth in China is strong and solid. This momentum of rapid development will continue in the next fewyears. The Group is optimistic that both the retailing environment and customer sentiment in China will remainpositive during this growth period.

The apparel market in China undergoes leaping expansion. The market size is tremendously large, although the competition in the industry is fierce. The Group is diligent in its efforts to achieve higher turnover and margin through enhancement of its brand value and focused penetration to the selected niche cities and location. We are transforming our brand positioning to a higher end market where trend-right and quality-right products dominate against price. Our strengthened marketing policies backed up by unique product and pricing strategies will enable us to expand our market share and secure a fruitful margin in the near future.

The demand for street stores and small-to medium-sized apartments in China?s second-tier cities like Zhangzhou is very strong. The 22-storey ?Singapore Ritz? will be completed and ready for sale later this year. The Group will then commence its new property project with a portion of land that has a ground area of 26,428 square meters by three phases upon receipt of government permits. We will build up our land reserve through acquisition of land in regions besides Zhangzhou. The Group is confident that the property development business will generate substantial additional revenue in the near future.

(extracted from 1H07 announcement)?s second-tier cities like Zhangzhou is?Singapore Ritz? will be completed and ready for sale later this year. The Group will then