Artini China Co. Ltd.

Annual Results 2007/08

Corporate PresentationJuly 2008

1

Disclaimer Disclaimer

This document does not constitute, or form part of any offer for subscription or sale of, or solicitation of any offer to subscribe for or buy of any securities of Artini China Co. Ltd. ("the Company"), nor shall it be construed as calculated to invite any such offer, nor shall this document or any part of it form the basis of, nor can it be relied upon in connection with, or act as an inducement to enter into any contract or commitment whatsoever. Accordingly, any decision in connection with the subscription or acquisition of securities of the Company pursuant to or in connection with any offering must be made solely on the basis of the information to be contained in the prospectus or other offering circular that may be issued by the Company in connection with such offering. The information of the documents should not be relied upon as representation of the Company.

FORWARD-LOOKING STATEMENTS

This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company in the PRC, Hong Kong and Macao and certain of the plans and objectives of the management of the Company. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements were based on assumptions regarding the Company's present and future business strategies and the political and economic environment in which the Company and its subsidiaries will operate in the future. Reliance should not be placed on these forward-looking statements, which reflect the view of the Company's management as of the date of this presentation only. There can be no assurance that future results or events will be consistent with any such forward-looking statements.

CONFIDENTIALITY

This document is given to you on a confidential basis and must not be passed to or transmitted to, or their contents be disclosed to, any other person and no copy shall be taken hereof.

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25Future StrategiesFuture Strategies

30Open ForumOpen Forum

7Financial HighlightsFinancial Highlights

Page

Major Major AchievementAchievementss 3

Business ReviewBusiness Review 14

Content Content

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Major Major AchievementAchievementss

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4

Major Achievements

Successfully listed on the Main Board of the HKSE on 16 May 2008, raised a total sum of HK$621,600,000

Further strengthened management and design team� Senior members recruited after listing included General Manager of HR, Training

Director (China), Financial Controller (Retail), Image Director, Brand Director and 2 designers

Retail business accounted for 49.8% of the Group’s total turnover, an increase of 26.6% points comparing to last financial year

Enhancing brand value of and drives the selling price of new products upward

Number of retail points increased from 48 as at 31 March 2007 to 138 as at March 2008

5

Results Highlights

Same-store Sales Growth

Hong Kong and MacauPRCOct – Dec 2007 vsJan – Mar 2008

2%

16%

-

1%

Change20072008For the year ended 31 March

+49.7%73,488110,024Profit for the year (HK$ ‘000)

+50.0%0.0980.147Basic earnings per share (HK$)

+9048138Number of retail points

339,480596,739 +75.8%Turnover (HK$ ‘000)

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Eastern Eastern China China Western Western

ChinaChinaAA

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NorthernNorthernChinaChina

Total retail points further expanded to 160 spanning over 34 cities in the PRC, Hong Kong and Macao as at 30 June 2008

22 outlets opened after 31 March 2008 mostly in top shopping arcades, including:� Grand Pacific in Beijing

� Wangfujing Department Store in Chongqing

Network Expansion

QQAA

5945

As at 30 June 2008

As at 31 March 2008

138

93

160

101

Total

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Financial Financial HighlightsHighlights

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8

Results Summary

49.7%73,488110,024Profit for the year

54.8%84,255130,437Profit from operations

96.4%191,696376,426Gross profit

Change20072008For the year ended 31 March (HK$ ‘000)

50.0%0.0980.147Basic earnings per share (HK$)

339,480596,739 75.8%Turnover

The Board recommended a special dividend of HK$0.04 per share

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260.8299.3

78.7

297.4

0

100

200

300

400

500

600

03/2007 03/2008

Strong Turnover Growth Strong Turnover Growth

339.5

Turnover Breakdown Turnover Analysis by Geographical Segments

Note: Financial year end date is 31 March

HK$ mn

CDM TurnoverRetail Turnover

23.2%

49.8%10.2%

4.6%

2.9%

2.3%

13.9%

9.4%

1.3%

3.7%

21.6%

12.9%

26.9%

17.3%

0%

20%

40%

60%

80%

100%

03/2007 03/2008

As a % of turnover

Europe America

Hong Kong Africa

Retail

CDMChina

Other Asia-Pacific regions

596.7

Gro

wth

: 75.8

%

10

16.4

8.0

13.0%

9.8%

0

2

4

6

8

10

12

14

16

18

03/2007 03/20080%

2%

4%

6%

8%

10%

12%

14%

16%

HK$ mn

Income Tax and Effective Tax Rate

Tax Paid Effective Tax Rate

Net Profit and Net Profit Margin

HK$ mn

Net Profit Net Profit Margin

Solid Financial PerformanceSolid Financial Performance

110.0

73.5 18.4%

21.6%

0

20

40

60

80

100

120

03/2007 03/20080%

5%

10%

15%

20%

25%

30%

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Operational DataOperational Data and Rental Analysisand Rental Analysis

Rental Analysis

Percentage of turnover (average)

Average rent (HK$)

As at 31 March 2008 ConcessionsRetail Stores

89,000 38,000

17.8% 25.7%

Average pay-back period (months)Average store-opening cost (HK’000)

232

334

312

566Retail Stores 4.0

Concessions 5.7

Retail Stores 5.8

Concessions 12.5

Operational Data

Same-store Sales Growth

Hong Kong and MacauPRCOct – Dec 2007 vs Jan – Mar 2008

2%

16%

-

1%

12

Key Financial RatiosKey Financial Ratios

1.81.4Current ratio (x)

For the year ended 31 March 2008 2007

Inventory turnover (Days) 70 55

Trade receivables turnover (Days) 30 25

Trade payables turnover (Days) 19 19

ROA(%) 36.4 41.9

ROE (%) 86.3 104

Debt to equity (x) 1.1 0.6

Interest coverage ratio (x) 32.6 30

133,00045,00036,483TOTAL

4,000——Head offices and regional offices

20,000——Logistic centre

48,00035,9805,516Leasehold renovation –Retail and Concession Stores, fixtures and fittings

61,0009,02030,967Leasehold land and building plant and machinery

200920082007HK$ ’000

For the year ended 31 March

Planned Capital Expenditures

Capital Expenditures

13

Use of Proceeds Updates

HK$ ‘000Use of Proceeds (already incurred)

Expansion of the PRC retail network by opening new retail stores and concessions

Expansion of manufacturing plant to increase productioncapacity

Marketing and promotion of “Artini” and “Q’ggle” brands

Addition and improvement of operational system andlogistic centers

Development of advanced information technologymanagement system

2,250

6,720

1,000

-

-

As at 18 July 2008

General working capital -

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Business ReviewBusiness Review

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WesternWesternChinaChina

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EasternEasternChinaChina

SouthernSouthernChinaChina

NorthernNorthernChinaChina

Benefited from an effective branding strategyto obtain prime store locations with favourable rental terms

Rapid Network ExpansionRapid Network Expansion

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Northern China

Western China

Southern China

Eastern China

RegionRetail Stores/Concessions*

TotalUsableArea

(sq. m)

LargeScale Store*

StandardStores*

- Shanghai 3/8 208/589 3 8

- Ningbo -/2 -/50 - 2

- Others 5/22 187/1155 2 25

- Guangzhou 4/4 468/235 4 4

- Shenzhen 9/10 1,304/895 11 8

- Others -/15 -/612 4 11

- Chongqing 1/6 104/255 1 6

- Chengdu -/6 -/202 - 6

- Wuhan 2/4 72/162 - 6

- Others 4/7 159/284 - 11

- Beijing 9/12 717/749 8 13

- Tianjin -/2 -/135 1 1

- Others -/16 -/730 0 16

Hong Kong 3/4 136/52 - 7

Macao 2/- 305/- 2 -

Total 42/118 3,252/ 6,722 36 124

* As at 30 June 2008* Large Scale Stores are stores with useable area larger than 80 sq. m.

Standard Stores are stores with useable area less than 80. sq. m.

QQAA

Chengdu:Chengdu:SeibuSeibu ((西武西武西武西武西武西武西武西武))

Beijing: Beijing: Raffles Beijing HotelRaffles Beijing Hotel

((北京飯店北京飯店北京飯店北京飯店北京飯店北京飯店北京飯店北京飯店))

Wuhan: Wuhan: New World (New World (新世界新世界新世界新世界新世界新世界新世界新世界))

Macao:Macao:Venetian (Venetian (威尼斯人威尼斯人威尼斯人威尼斯人威尼斯人威尼斯人威尼斯人威尼斯人))

Hong Kong: Hong Kong: HarbourHarbour City (City (海港城海港城海港城海港城海港城海港城海港城海港城))

Guangzhou:Guangzhou:Teem PlazaTeem Plaza

((天河城天河城天河城天河城天河城天河城天河城天河城))

Shanghai:Shanghai:Super Brand MallSuper Brand Mall

((正大廣場正大廣場正大廣場正大廣場正大廣場正大廣場正大廣場正大廣場))

Shenzhen:Shenzhen:MixcMixc Plaza (Plaza (萬象城萬象城萬象城萬象城萬象城萬象城萬象城萬象城))

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New Outlets OpenedNew Outlets Opened

ChengshaChengsha HeiwadoHeiwado

((長沙平和堂長沙平和堂長沙平和堂長沙平和堂長沙平和堂長沙平和堂長沙平和堂長沙平和堂))

Shanghai Super Brand MallShanghai Super Brand Mall

Store Opening (Store Opening (上海正大廣場上海正大廣場上海正大廣場上海正大廣場上海正大廣場上海正大廣場上海正大廣場上海正大廣場))

22 outlets opened after 31 March 2008 mostly in top shopping arcades

Beijing Grand PacificBeijing Grand Pacific

((北京君太北京君太北京君太北京君太北京君太北京君太北京君太北京君太))

Qingdao Qingdao HisenseHisense MallMall

((青島青島青島青島青島青島青島青島海信广场海信广场海信广场海信广场海信广场海信广场海信广场海信广场))

Chongqing Chongqing WangfujingWangfujing

Dept Store (Dept Store (重慶重慶重慶重慶重慶重慶重慶重慶王府井百货王府井百货王府井百货王府井百货王府井百货王府井百货王府井百货王府井百货))

Fuzhou Grand OceanFuzhou Grand Ocean

((福州大洋百貨福州大洋百貨福州大洋百貨福州大洋百貨））））福州大洋百貨福州大洋百貨福州大洋百貨福州大洋百貨））））

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ExExcellent cellent DDevelopment ofevelopment of Retail BusinessRetail Business

No. of VIP

TotalStore

Area (sq.m)

No. of retail

points

59,54356,28628,108

5,6825,0762,097

1019341

31 Mar 2007 3/2008 30 Jun 200831 Mar 2008

6,9323,691681

4,2923,843362

59453

31 Mar 2007 31 Mar 2008 30 Jun 2008

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International International Product Design TeamProduct Design Team

Professional design team comprising 38 designers from the UK, the PRC and Hong Kong, newly employed 2 since IPO

Design over 850 models of products each month

Three segregated design teams

Library

MarketingProduction

Design Team

Key designers from prestigious design schools, which include:

� Central Saint Martins College of Art and Design in London

� Duncan of Jordanstone College of Art

� Royal College of Art

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New Products Series

2008 Spring/ Summer Series

20

EEffective ffective MMarketing arketing CCampaignampaign

Shanghai Airport

Beijing San Li Tun

7 Roadshows

Crossover withShiseido & Lancome

Fashion Shows Over 59,000 VIPs

BAZZAR

Modern Magazine

ShenzhenSubway

Shenzhen Outdoor

6 RoadshowsCrossover with

Laneige Fashion Shows Over 6,900 VIPs Yahoo

Cosmopolitan

Media Relations

CRM ProgramMarketing Campaigns

Strategic Alliances

Brand Ambassador

Advertisement

21

New Marketing Campaign

Beauty Contest

Fund Raising for the Sichuan Earthquake

Sales of RMB1,000,000 generated on 18th May 2008 from nationwide Artiniand Q’ggle retail outlets had been donated to the area for disaster relief

Artini’s Image Consultant Day

Further enhance brand equity via different marketing activities

22

New Marketing Campaign

Magazine Promotion

Online MagazineRoadshow

Music Show

Further drew the attention of the target group by various marketing channels and activities

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VIP Campaign

VIP Day

Number of VIPs increased rapidly to 66,475 at of 30 June 2008

� An increase of 131% from 28,789 as at 31 March 2007

� Increased by 6,493 from 59,977 as at 31 March 2008

VIP accounted for approximately 20% of total sales as at March 2008

Further enhance the customer loyalty

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Ms. Belinda KwanBrand Director

Worked as Merchandising Director of Gianni Versace

Responsible for brand management and chain’s merchandising and operation ofGianni Versace in HK and the PRC

Ms. Pamela LowImage Director

Previously worked at Alan Chan Design, Brushstroke Bozell Worldwide and Art Director of Lane Crawford

Strengthened Management Team

5 senior management newly joined the Group

Mr. Deric LamGeneral Manager of Human Resources

Over 10 years’ experience ininternational brand retail chain operators,i.e. Burberry, Bally, MaxMara, Jean Paul Gaultier in Greater China Region

And worked atLi & Fung retail division

Ms. Rita ChanFinancial Controller (Retail)

CPA qualification

Over 10 years’ accounting and financial experience in retailing in China

Ms. Celeste GeTraining Director (China)

Over 10 years’ experience in retail training with Avon China as National Training Director

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Future StrategiesFuture Strategies

25

26

Corporate MissionCorporate Mission

Enhancebrand

awarenessand promote

customerloyalty

Develop and expand retail business in the PRC

Broaden product offeringsand client bases

Enhance brand equity

Implement multi-brandsstrategies

To become one of the largest

fashionaccessories retail brand operatorsin the PRCFurther strengthen

CDM business

27

Expand networks in the PRC

-

+1

-

--+1

ARO

As at 31 MarchAs at 31 March

2008 2009 2008 2009

Retail Stores

+3 +5 Eastern China - +9

+5 +2 Southern China +4 +3

+3 +2 Western China +1 +2

-1 +2 Northern China +3 +1

+1 - Hong Kong & Macao +1 -

+11 +11 Sub-total +9 +15

Concessions

+9 +12 Eastern China +7 +19

+7 +5 Southern China +10 +16

+7 +5 Western China +5 +13

+11 +7 Northern China +10 +15

- - Hong Kong & Macao - -

+34 +29 Sub-total +32 +63

+46 +40 Growth +42 +78

93 133 Total 45 123

Develop and Expand Retail Business in the PRC

Leverage on influence in 1st tier cities to further expand in nearby 2nd tier cities

Expand to 2nd tier cities and some 3rd tier cities to capture the rapid growth potential

Concept stores of & are expected to be opened in 3Q 2008

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Diversify product offering to enlarge target consumer groups

� Gift and premium items

� Limited edition series

� 925 silverware series

� Acquisition of new brands

Vertical Expansion

Continue to recruit designers from Europe and North America

Strengthen internal training, encourage design team to participate in international exhibitions and design contests to keep abreast of latest international design inspirations

Plan to establish an international design institute in the PRC to nurture potential talentin the PRC

Broaden product offerings

Broaden Product Offerings withBroaden Product Offerings with

New Product LinesNew Product Lines

Widen product ranges to increase purchase frequency and usage

� Clothing and home décors

� one-stop shopping fashion accessories concept, such as sandals, tees, stationeries, under wears

Horizontal Expansion

Enhance the competitiveness of our design team

29

Future StrategiesFuture Strategies

Expand CDM customers and increase market sharein the PRC

Explore business opportunities and formation ofstrategic alliances with different brands

Increase production capacity

Enhancebrand equity

Implementmulti-brands

strategies

Furtherstrengthen

CDM business

Introduce international brands

Launch new proprietary brands

Brand acquisition and strategic alliances

CRM Program

� Crossover projects with international brands

Strategic Alliances� Strive to increase VIP numbers

Advertising Promotion

Marketing Campaigns

Brand Ambassador

3030

Open ForumOpen Forum