Results Highlights (For the 12 months ended 31 December)
(RMB million)	2009	2008	Change
Sales	3,970.4	3,322.2	+19.5%
Gross profit	2,399.4	1,943.8	+23.4%
Operating profit	1,697.3	1,331.7	+27.5%
Gain on negative goodwill on acquisition of Phenix (one-off gain)	-	146.0	N/A
Profit attributable to equity holders
- before one-off gain	1,459.8	1,221.8	+19.5%
- after one-off gain	1,459.8	1,367.7	+6.7%
Gross margin (%)	60.4%	58.5%	+1.9% pts
Operating margin (%)	42.7%	40.1%	+2.6% pts
Basic earnings per share (RMB cents)
- before one-off gain	25.76	21.54	+19.6%
- after one-off gain	25.76	24.12	+6.8%
Proposed final and final special dividends per share (RMB cents)	12.95	9.35	+38.5%
Full year dividend ratio (%) - including special dividend	70.0%	60.0%	+10.0% pts

Note:

Japan segment achieved significant enhancement in financial performance, its net profit increased by nearly 5 times from RMB7.7 million in 2008 to RMB44.6 million in 2009

Operational Highlights
Accelerated retail expansion	No. of Kappa retail stores in China directly or indirectly operated by the Group's distributors increased by 703 to 3,511 Online flagship store opened on Taobao.com
Strengthened relationship with distributors	Formed JVs with six key distributors to foster stronger relationship and strengthen its retail network in China
Extensive brand portfolio
Strengthened product design & R&D capabilities	Collaborated with Mr. Michael Michalsky, the former global creative director of Adidas and a well-known designer in sportswear field A team of 161 design and R&D talents from the PRC, Japan, Korea and Italy Cooperated with the University of Arts London and WGSN to strengthen product R&D in China
Efficient working capital management	Inventory turnover, A/R and A/P turnover days for China segment maintained at healthy level of 44 days, 24 days and 61 days respectively