Interim Results

Corporate Presentation 2011 Interim Results 1 Disclaimer and Forward Looking Statements . This document carries the information and the opinion is not for the purpose of comprehensive research, financial services or legal opinion. Chow Sang Sang Holdings International Ltd. does not guarantee its accuracy and integrity. This document contains the information only to provide reference. They can not become or deemed to be sold or bought or subscribe for securities or other part for the invitation. This document contains information, opinion that only reflect Chow Sang Sang Holdings International Ltd’s opinion on the date of the presentation. Chow Sang Sang Holdings International Ltd. can change anything on this document without notices. Chow Sang Sang Holdings International Ltd. is not liable for any losses incurred from the usage of information or opinions obtained from this document. 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These forward-looking statements are based on our own company and other sources that we believe are reliable. 2 Presentation Outline Business Overview P. 4 Financial Highlights P. 1 0 Future Plan and Strategy P. 1 8 Q&A Session P. 2 3 Appendix P. 2 4 3 Business Overview 4 Company Structure • Physical Metals Trading Service Precious • Commission Based Metals • Generated 30% of total revenue Wholesale for 2011 1H Jewelry Retail • 8 HK offices • Commission based Securities Brokerage • No Proprietary trading • Main business segment • Generated 0.3% of total • Near 300 self operated revenue for 2011 1H shops in Greater China • Operates under “Chow Sang Sang” and • Investment Properties “Emphasis Jewelry” Other • Shares of HKEx • Generated 69% of total Investments • Generated 0.7% of total revenue for 2011 1H revenue for 2011 1H 5 Business Overview: Jewellery Segment 6 Product mix: Jewellery Gold based Items Gem-set Items Licensed Products (Hello Kitty) International Brands (Rolex, Tudor, Versace) 7 Distribution Network Complementing the extensive retail network, the eshop.chowsangsang.com offers an online shopping Beijing service Surrounding Provinces Chow Sang Sang directly runs & controls all of its retail 26 stores with no franchise operations Heilongjiang Beijing Flagship Store Inner Mongolia Jilin Xinjiang Beijing Liaoning Tianjin Shanghai Flagship Store Gansu Hebei Ningxia Shanxi Qinghai Shandong Eastern Northern Shaanxi Jiangsu 37 58 Henan Tibet Hubei Anhui Shanghai Chongqing Sichuan Zhejiang Jiangxi Guizhou Hunan Fujian Kunming Flagship Store Guangdong Taiwan Yunnan Guangxi Chow Empasis Hong Kong Flagship Stores Hong Kong Sang Sang Jewellery Macau China(1) 193(2) – Hainan HK / Macau 42 11 (1) Covered cities Southern Taiwan - 21 72 (1) Excluding Hong Kong and Macau (2) Reached 201 as of August 18, 2011 8 Focus on Strong Growth in Mainland China Increasing No. of Stores in Mainland China (No. of Stores) 200 150 New shops +14 New 100 193 shops 181 +43 New 143 120 shops 50 +29 0 2008 2009 2010 2011 1H Same-store Sales 23% 14% 23% 43% Growth 9 Financial Highlights 10 Improving Operating Performance and Profitability Revenue Gross Profit (HK$ mm) (HK$ mm) 10,000 2,000 25.0% 20.8% 8,000 18.4% 20.0% 18.1% 6,000 15.0% 1,000 4,000 8,280 1,525 10.0% 5,244 1,089 4,610 2,000 834 5.0% 0 0 0.0% 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011 1H Gross Margin 11 Improving Operating Performance and Profitability (Cont’d) Operating Profit Net Profit (1) (HK$ mm) (HK$ mm) 800 10.0% 600 7.0% 6.1% 700 8.3% 5.8% 8.0% 6.0% 500 8.0% 5.4% 600 6.8% 5.0% 400 500 6.0% 4.0% 400 300 687 4.0% 507 3.0% 300 200 421 2.0% 200 303 315 2.0% 247 100 100 1.0% 0 0.0% 0 0.0% 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011 1H Operating Margin Net Profit Margin (1) Total group net profit 12 …Driven by the Retail Segment… Revenue Breakdown Results Breakdown 0.5% 0.4% 0.7% 0.5% 0.1% 0.6% 100% 100% 0.8% 0.6% 0.3% 3.7% 1.8% 7.1% 2.0% 2.3% 90% 90% 6.6% 28.3% 29.6% 80% 80% 42.8% 70% 70% 60% 60% 50% 50% 94.2% 95.3% 85.9% 40% 40% 70.7% 69.4% 30% 30% 55.8% 20% 20% 10% 10% 0% 0% 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011 1H Retail Wholesale Broking Other Retail Wholesale Broking Other 13 …with High Growth and Improving Margin… Retail – Revenue Retail – Operating Results (HK$ mm) (HK$ mm) 6,000 700 12.0% 10.9% 10.0% 10.2% 600 5,000 10.0% 500 4,000 8.0% 400 3,000 6.0% 5,749 300 626 2,000 4.0% 3,705 200 377 2,574 256 2.0% 1,000 100 0 0 0.0% 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011 1H Profit Margin 14 …and Robust Demand from PRC Consumers 2009 2010 2011 1H Others Others Others 1.5% 1.3% 0.9% HK/Macau HK/Macau China China 42.1% 38.2% HK/Macau 31.7% 33.4% China 38.4% 32.4% HK/Macau HK/Macau (PRC Customers) (PRC Customers) 24.7% HK/Macau 27.1% (PRC Customers) 28.3% Sales Attributable to PRC 56% +4% 60% + 7% 67% Customers(1) Mainland customers’ contribution continues to increase 15 (1) China sales + HK/Macau sales by PRC customers Stable Working Capital Trends Average Inventory Turnover Days Average Receivables Turnover Days (No. of Days) (No. of Days) 150 139 12 11 128 120 10 10 120 8 8 90 6 60 4 30 2 0 0 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011 1H Average Payables Turnover Days Cash Conversion Cycle (No. of Days) (No. of Days) 10 150 143 8 7 133 6 5 125 4 3 2 0 100 2009 1H 2010 1H 2011 1H 2009 1H 2010 1H 2011 1H 16 Financial Highlights For the 6 months ended or as at Jun 30, % Growth (HK$ mm) 2009 2010 2011 09 vs 10 10 vs 11 Turnover 4,610 5,244 8,280 13.8% 57.9% Jewellery Retail 2,574 3,705 5,749 43.9% 55.2% Other businesses 2,036 1,539 2,531 (24.5%) 64.5% Gross profit 834 1,089 1,525 30.6% 40.0% Gross margin 18.1% 20.8% 18.4% Operating profit 315 421 687 33.7% 63.2% Operating margin 6.8% 8.0% 8.3% EBITDA 355 474 738 33.5% 55.7% Net income 247 303 507 22.7% 67.3% Net margin 5.4% 5.8% 6.1% EPS (HK cents) 40.1 47.6 73.3 18.7% 54.0% Dividend per share (HK cents) 7.0 8.0 11.0 14.3% 37.5% Capital expenditure 80.0 40.0 55.0 (50.0%) 37.5% Gearing ratio (1) 12.0% 11.0% 19.3% 1) Total borrowings to equity holder ‘s including non-controlling interests. Total borrowings includes interest-bearing bank and other borrowings. 17 Future Plans and Strategies 18 Expansion in PRC 50 new stores per year until 2012 in the PRC Capitalize on Existing Self-Run Store Model Expansion Philosophy Presence • Selective shop positioning • Minimize risk of theft, • Target mid – high end and careful geographic plagiarism consumers spacing to avoid overconcentration of stores • Leverage on high-end • Goal is not to maximize shopping malls and number of stores, but to fine • Large potential for growth; department stores’ tune brand positioning smaller store count as positioning to enhance compared to competitors image • More flagship, star stores 19 Product Mix and Branding Target higher margins and product differentiation Higher GP Focus Licensed Products International Branding • Direct sales of higher margin • Continue sales of licensed • Pursue an East-meets-West gem-set items products, such as Hello Kitty marketing approach via a with comparably higher global image / platform • Differentiate from gold-based margins competitors • Collaborate with international brands for unique products for more differentiation • Increase presence and visibility of international brands in the product portfolio 20 Improving Operating Efficiency Emphasize initiatives to lower costs Implement efficient Improving human Enhancing logistical manufacturing capital support methodologies • Implementing extensive • Utilization of sub centers • Maximize investment in training programs to retain Shunde land by turning it into promising middle one-stop operational HQ for: management staff in PRC • Designing • R&D research • Introduce incentive schemes • Manufacturing to attract and retain effective sales people 21 Further Marketing Initiatives Employing local and international means of marketing International Initiatives Greater China Initiatives Regional Initiatives • Leverage and continue • Continue to market the • Sponsorship of cultural partnership with Antwerp international perspective via events Diamond Museum, the print and TV commercials largest in the world • Customized consumer events • Aggressively target Chinese to raise awareness visiting the HK & Macau tourist hubs • Utilize local marketing expertise to support regional centers 22 Q&A Session 23 Appendix 24 Company History 1930-1970 1970-1980 1980-1990 1990-2000 2000-2011 1934 1973 1998 2005 2006 2009 2011 1H Chow Sang First company Re-entered Became Launch brand Opened the Accelerated Sang in the the Mainland sightholder of revamp first growth in Goldsmith industry China market Diamond campaign Flagship China established listed on Trading Store in in Hong Kong Company Beijing Guangdong Stock Exchange No.

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