Results Highlights (For the six months ended 30 June)
(RMB million)	1H 2009	1H 2008	Change
Sales	1,868.4	1,399.4	+33.5%
Gross profit	1,162.7	854.8	+36.0%
Gross profit margin	62.2%	61.1%	+1.1% pts
Operating profit	849.7	612.1	+38.8%
Gain on negative goodwill on acquisition of Phenix Co., Ltd. ("Phenix") (one-off gain)	-	146.0	N/A
Profit attributable to equity holders
- before one-off gain	722.0	510.8	+41.3%
- after one-off gain	722.0	656.8	+9.9%
Basic earnings per share (RMB cents)
- before one-off gain	12.74	9.00	+41.6%
- after one-off gain	12.74	11.57	+10.1%
Interim and interim special dividends per share (RMB cents)	5.09	3.59	+41.8%

Operational Highlights
Solid & sustainable growth	Sales and profit attributable to equity holders (excluding one-off gain) increased by 33.5% and 41.3% respectively, propelled by strong brand equity and good management execution during economic turmoil
Enhanced gross margin	Gross margin increased to 62.2% mainly due to termination of low margin business segments
Fast-growing retail network	The number of Kappa Brand retail outlets in China segment directly and indirectly operated by the Group's distributors increased by 507 to 3,315
International product design and R&D teams	Strong design and R&D teams with totally 149 experts in China and Japan
Substantive volume growth	Apparel and footwear sales volume of Kappa Brand products in China segment rose 28.2% and 26.9% respectively to 9.8 million pieces and 2.2 million pairs
Efficient working capital management	Inventory turnover days and trade receivables turnover days of China segment maintained at healthy level of 38 days and 22 days respectively