16

Comparison on Apparel, Accessories and Luxury Goods Companies Listed in different Exchanges

Hong Kong has 67 Securities listed with a total mkt cap of US$31.93B and average P/E of 26.97x

Paris has 16 Securities listed with a total mkt cap of US$153.36B and average P/E of 24.13x*

Singapore has 11 Securities listed with a total mkt cap of US$0.39B and average P/E of 9.55x

New York has 16 Securities listed with a total mkt cap of US$72.43B and average P/E of 19.24x

Milan has 13 Securities listed with a total mkt cap of US$19.65B and average P/E of 16.28x

Source: Bloomberg (as at 28 Oct 2011)

* Barbara Bui has been excluded from the data sample because it’s a distant outlier with respect to the market median

London has 9 Securities listed with a total mkt cap of US$11.78B and average P/E of 27.69x

17

Case Study (1) – Prada from Italy

Highlights

� The 1st Italian company to list in HK

� Hong Kong being the listing venue of choice as it can leverage on the high Asia Pacific CAGR being at 51.1% for FY2009 to 2011 (1.0% in Italy, 1.6% in rest of Europe and 0.8% in North America)

� Raised IPO funds of USD2.5B with IPO; market cap of USD13.4B

� As of Oct 28, is trading at a P/E of 36.83x

Source: Bloomberg (as at 28 Oct 2011)

18

Case Study (2) – Sun Art from France and Taiwan

Highlights

� Sun Art Retail Group Limited is one of the largest and fastest growing hypermarket operators in China in terms of sales in 2010 and market share increase from 2008 to 2010 respectively

� IPO fund raised of USD1.1B; market cap of USD12.3B

� As of Oct 28, it is trading at P/E of 43.78x

Source: Bloomberg (as at 28 Oct 2011)

HKEx Increasingly Attracts Listings from Other Exchanges

19 Source: HKEx, Bloomberg (as at 30 Sep 2011)

� Listed on London AIM in Apr 2004 � Listed by introduction on HKEx in Feb 2009 � From between 2009 to Aug 2011, RCG raised USD103 m on

the secondary market

Avg Daily Turnover in HK is 11 times higher than in UK

� Other dually listing examples: � HKEx & SGX: Shangri-La Asia (Lodging), Courage Marine (Transportation) � HKEx & TSX: Manulife (Insurance), China Gold (Mining) � HKEx & LSE: Glencore (Mining), Asian Citrus (Agriculture)

RCG Holdings – Dually listed on UK AIM and HKEx

Avg

Dai

ly T

urno

ver

(USD

k)

Want Want China Holdings– Delisted from SGX and listed on HKEx

� Listed on SGX in May 96 and delisted on Sep 2007 right before HK listing � Market Cap increased sharply when it was listed in HK � Turnover in HK is now 9 times higher than in SGX � Share price continued to go up by 141% since listing in HK

Market Cap of Want Want China

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2/1/06 28/8/0623/4/0717/12/0711/8/08 6/4/0930/11/0926/7/1021/3/11

151 HK WANT SP

IPO in HK

303

511

282

65

927

588

769

0

200

400

600

800

1000

2008 2009 2010 Sep 2011

AIM HKEx

Mar

ket C

ap

(USD

m)

20

Secondary Listing

20

List of secondary listing stocks on HKEx

Characteristics of secondary listing

� Secondary listed issuers are primarily listed on another stock exchange and the majority of their equity securities are not usually traded on HKEx

� The Exchange is satisfied as to the shareholder protection standards in the issuer’s jurisdiction of incorporation

� Can apply for waivers from strict compliance of listing rules

� Standards other than Hong Kong FRS or IFRS may be accepted

Name Incorporation Listing Date Primary Exchange

Manulife Financial Canada 27 Sep 1999 Toronto

SouthGobi Energy Canada 29 Jan 2010 Toronto

Midas Holdings Singapore 6 Oct 2010 Singapore

Vale S.A. Brazil 8 Dec 2010 Brazil

Glencore International plc Jersey 25 May 2011 London

Kazakhmys plc England and Wales 29 June 2011 London

21 21

Distribution of Listed Companies by Industry Sectors

Source: HKEx (as of September 2011)

Energy, 62 Materials, 130

Industrial Goods, 118

Consumer Goods, 373

Services, 227

Telecom, 17

Utilities, 41

Financials, 113

Properties & Construction, 201

IT, 163

Conglomerates, 22

Number of companies (Total: 1,467 companies)

Market Capitalization (%) (Total: USD2,080 bn)

Energy, 8% Materials, 3% Industrial Goods,

2% Consumer Goods,

11%

Services, 9%

Telecom, 13%

Utilities, 4%

Financials, 30%

Properties & Construction, 11%

IT, 4%

Conglomerates, 5%

22 Source: HKEx

YTD Sep 2011

Applications Accepted Approved Under Processing

Main Board 168 91 84

GEM 32 8 22

Total 200 99 106

Current IPO Pipeline

23

An issuer decides to list

on HKEx

Appointment of sponsors,

lawyers, accountants

& other professional

advisors

Restructuring, preparation of accountants’

report, drafting of prospectus

Sponsor submits listing application &

related documents

to the Listing Division of HKEx

Roadshow to promote to investors

before trading commences

Hearing by Listing

Committee

Review of listing application by the

Listing Division

Review and approval of listing application

by the Listing Division

GEM

Main Board

Listing Process

Average Time: 10-12 weeks

Overseas Jurisdictions Accepted

18 New Jurisdictions plus HK, PRC, Bermuda and Cayman Islands

Australia

Brazil

British Virgin Islands

Canada – Alberta

Canada – British Columbia

Canada – Ontario

Cyprus

France

Germany

Guernsey

Isle of Man

Italy

Japan

Jersey

Luxembourg

Singapore

UK

US – California

More jurisdictions are under review 24

25

What Experts are Saying about HKEx…

Piyush Gupta, CE of Singapore’s DBS Group, WSJ, 18/7/11 Wen Jiabao, China Daily, 14/3/11

Volynets, general director of RUSAL's holding company EN+, Sino Daily, 17/4/11

“RUSAL has become Russia's most recognizable company in China. The formula is very simple: Russian goods, China's market, Hong Kong capital market, stock market“.

“Hong Kong will be a dominant center for offshore renminbi trade, that's a given. The other market that is difficult is the equities market, both the cash and the derivatives market. Hong Kong is just much larger than we are”.

Why is Hong Kong suddenly the “it” bourse for luxury IPOs? One, for “Asia-centric” luxury demand which has companies thinking “let’s IPO where my consumers are” and two, in a jittery world, Hong Kong is a relatively better place to raise money.

W Ji b Chi D il 14/3/11

“The central government will support Hong Kong in developing itself into an offshore RMB settlement center and international assets management center. I believe Hong Kong has the ability to cope with not only regional but also international competition and risks,".

LiveMint, WSJ, 30/6/11

26

HKEx – Asia’s Global Market

#1 in IPO Funds Raised Globally for 2 Years in a Row

Global Investor Base and Robust Liquidity

Competitive Valuation

Opportunities with Mainland China

The Premier International Financial Center in Asia

The Stock Exchange – Operates Two Boards for Two Target Groups

27

For larger and more established companies which meet the profit / financial standards

requirements

A second board and a stepping stone towards the Main Board

Main Board Growth Enterprise Market

Ways of Listing

� Primary listing on HKEx by public offering, shares or depositary receipts � 1) Dual primary listing: by public offering (with fund raising) or by introduction (w/o fund raising), shares or depositary receipts 2) Primary listing overseas and secondary listing on HKEx: by public offering or by introduction, shares or depositary receipts

28

Appendix – Key Main Board Listing Requirements

28

Financial Requirements � To fulfill any one of the following tests: 1. Profits Test

� Net profit of latest year ≥ USD2.6 m � Net profit of two preceding years ≥ USD3.8 m

(in aggregate) � Market cap ≥ USD25.6 m

2. Market Cap / Revenue Test � Market Cap ≥ USD513 m, and � Revenue of the most recent audited year ≥

USD64 m

3. Market Cap / Revenue / Cashflow Test � Market Cap ≥ USD256 m, � Revenue of most recent audited financial year

≥ USD64 m � Aggregate positive cash flow for 3 preceding

financial years ≥ USD13 m

Control and Management � Ownership continuity and control for at least the

most recent financial year � Management continuity for at least 3 years

Public Float � Minimum of 25% � If market cap ≥ USD1,282 m, public float can be

lowered to 15% � Minimum of 300 shareholders

Professional Advisers � Must appoint a sponsor for listing � Public offer tranche must be fully underwritten

by underwriters � Must appoint a compliance adviser for the period

from listing date to end of publication of financial results for 1st full financial year after listing

29

Contact Us

29

HKEx Corporate Website: www.hkex.com.hk Designated Issuer Website: www.hkexnews.hk

Issuer Marketing Department Hong Kong Exchanges and Clearing Limited Add: 10/F, One International Finance Centre 1 Harbour View Street, Central, Hong Kong Tel: (852) 2840 3780 Fax: (852) 2530 2858 Email: imd@hkex.com.hk Eric Landheer, Head of Issuer Marketing Tel: (852) 2840 3313 Email: ericlandheer@hkex.com.hk