DisclaimerThis presentation does not constitute, or form any part of This presentation does not constitute, or form any part of any offer for any offer for sale or subscription of, or solicitation of any offer to buy or sale or subscription of, or solicitation of any offer to buy or subscribe subscribe for, any securities nor shall it or any part of it form the basifor, any securities nor shall it or any part of it form the basis of or be s of or be relied on in connection with, any contract or commitment whatsoerelied on in connection with, any contract or commitment whatsoever.ver.Any offer of securities will be made in or accompanied by a copyAny offer of securities will be made in or accompanied by a copy of of the prospectus or profile statement. Anyone wishing to acquire the prospectus or profile statement. Anyone wishing to acquire securities will need to make an application in the manner set ousecurities will need to make an application in the manner set out in the t in the prospectus or profile statement.prospectus or profile statement.This presentation was prepared exclusively for the parties preseThis presentation was prepared exclusively for the parties presently ntly being invited for the purposes of discussion. Neither this presbeing invited for the purposes of discussion. Neither this presentation entation nor any of its contents may be used without the prior written conor any of its contents may be used without the prior written consent nsent of Asia Silk Holdings Limited.of Asia Silk Holdings Limited.Information contained in this presentation document does not Information contained in this presentation document does not constitute a part of the prospectus.constitute a part of the prospectus.

Presentation Overview

Section 1:Section 1: Our BusinessOur BusinessSection 2:Section 2: Competitive StrengthsCompetitive StrengthsSection 3: Financial HighlightsSection 3: Financial HighlightsSection 4:Section 4: Growth & Expansion PlansGrowth & Expansion PlansSection 5:Section 5: SummarySummary-- Investment MeritsInvestment MeritsSection 6: Invitation StatisticsSection 6: Invitation Statistics

Our BusinessSection 1

Ms Ding ZhiyingMs Ding ZhiyingExecutive Chairman & Chief Executive OfficerExecutive Chairman & Chief Executive Officer

The PRC’s Silk Industry

Export of silk products overseas growing Export of silk products overseas growing strongly strongly

24.3% growth in value of silk textile exports to US$1.43 billion16.7% increase in silk garments to 98.5 million sets22.1% increase in value of silk garments exported

( % based on HY2004 figures & HY2003 comparisons )

A regulated industryA regulated industryRequires production permit with minimum production capacity criteria, issued by Ministry of Commerce

The Heart of the World’s Silk Trade

98.584.3

167.7150.9

95.7

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

2001 2002 2003 HY2003 HY2004

69.1

106.2116.7

56.669.1

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2001 2002 2003 HY2003 HY2004

Million Pcs

RMB Hundred Million

PRC Export of Silk Products

Source: State Customs Bureau

Closely linked to the PRC garment Closely linked to the PRC garment industry industry

Trend for international brands to movemanufacturing operations to PRC

Move towards one-stop service requirements by these brands WTO post quota era - provides opportunities for PRC apparel manufacturers to penetrate into foreign markets & brands

Increasing domestic demand Increasing domestic demand –– spurred by spurred by changes in lifestyle changes in lifestyle

Rising affluence leading to increasing demand

The PRC’s Silk Industry

The Heart of the World’s Silk Trade

Silk Silk –– natural fibre, more durable than natural fibre, more durable than synthetic fibressynthetic fibres

Comfortable, have good absorbency and Comfortable, have good absorbency and have ability to keep wearer warm in cold have ability to keep wearer warm in cold climates and cool in warm climates climates and cool in warm climates

Can easily be spun with other types of Can easily be spun with other types of fibresfibres

Making the silk more versatile for Making the silk more versatile for manufacture of different garmentsmanufacture of different garments

Caters to a larger market segment Caters to a larger market segment

InIn--house know how to blend & manufacture house know how to blend & manufacture machine washable spun silk. machine washable spun silk.

Our Niche – Spun Silk

Characteristics & Advantages

Asia Silk Holdings Limited

More than 18 years of experienceMore than 18 years of experienceSpecialise in the manufacture of spun Specialise in the manufacture of spun silk yarn & fabricssilk yarn & fabricsEnhanced capabilities by expanding into Enhanced capabilities by expanding into garment manufacturing in 2004garment manufacturing in 2004Established sales presence in key PRC Established sales presence in key PRC apparel manufacturing cities of apparel manufacturing cities of Shanghai, Shenzhen, Hangzhou & Hong Shanghai, Shenzhen, Hangzhou & Hong Kong Kong

One of the PRC’s leading spun silk manufacturers

Shanghai

Shenzhen

Hong Kong

Hangzhou

Our Key Products

Spun Silk Yarn

• Spun silk-tencel yarn• Hard twisted yarn• Short-fibre combed yarn • Coloured pure spun silk

yarn• Floret yarn• Spun silk–linen yarn

Spun Silk Fabrics Garments

Contributed 31.8% toHY2004 revenue

Contributed 62.4% toHY2004 revenue

• Silk-tencel fabric• Hard twisted spun silk

fabric•Spun silk-dyed fabric•Spun silk-linen fabric•Spun silk corduroy

• Casual & ready to wearsilk garments for women

• Spun silk shirts & trousers for men

• Casual wear using otherfabrics

Contributed 5.8% toHY2004 revenue

Constant Product DevelopmentFocus on Premium Products

Spun Silk Yarn

Manufacture a wide range of spun Manufacture a wide range of spun silk yarns silk yarns

Used for own fabrics productionUsed for own fabrics productionSale to customers Sale to customers

Main customers are knit wear Main customers are knit wear manufacturers who manufacture manufacturers who manufacture knit wear for international apparel knit wear for international apparel brands brands Products range from 48Nm/2 to Products range from 48Nm/2 to 160Nm/2 160Nm/2 ( thickness & number of strands per thread )( thickness & number of strands per thread )

Spun Silk Fabrics

Environmentally friendly, comfortable & Environmentally friendly, comfortable & has ability to retain shape after washinghas ability to retain shape after washingCommonly used for manufacture of Commonly used for manufacture of high end casual wear high end casual wear Supply fabrics to local & overseas Supply fabrics to local & overseas garment manufacturing customersgarment manufacturing customers

Principal garment manufacturers for Principal garment manufacturers for international apparel brands international apparel brands

Polo Ralph Lauren, Liz Claiborne, Polo Ralph Lauren, Liz Claiborne, Tommy Bahama, Talbots, Ann Taylor Tommy Bahama, Talbots, Ann Taylor

Supply fabrics to garment Supply fabrics to garment manufacturing arm for production of manufacturing arm for production of garments garments

Garments

Commenced operations in 2004Commenced operations in 2004Manufactures casual wear for Manufactures casual wear for export marketsexport marketsProducts sold to overseas Products sold to overseas customers in the USA, Germany, customers in the USA, Germany, Denmark, Canada, UK, Hong Denmark, Canada, UK, Hong KongKong

Direct sales to international Direct sales to international brands brands –– Max Studio, AnthologyMax Studio, AnthologyOverseas customers who supply Overseas customers who supply them to international brands them to international brands ––G2000, Tommy Hilfiger G2000, Tommy Hilfiger

• Polo Ralph Lauren • Liz Claiborne• Tommy Bahama• Max Studio• Ann Taylor• Tommy Hilfiger• Talbots• G2000

Labels We Serve

Our Manufacturing Capabilities

Manufacturing facilities in Yixing Manufacturing facilities in Yixing

ISO9001:2000 quality management certificationISO9001:2000 quality management certification

Operate technologically advanced facilities & machineriesOperate technologically advanced facilities & machineriese.g. facilities in winding & doublinge.g. facilities in winding & doublinge.g. machineries such as rapier weaving machines, refining machie.g. machineries such as rapier weaving machines, refining machineneMachines are imported from EuropeMachines are imported from Europe

Competitive Strengths Section 2

Competitive Strengths Established Market Position & ReputationEstablished Market Position & Reputation

Reputation for quality productsReputation for quality productsAwards:Awards:

Technologically Advanced Product Recognition Certificate Technologically Advanced Product Recognition Certificate Science & Technology Department of Jiangsu Province, 2004Science & Technology Department of Jiangsu Province, 2004Reliable & Trustworthy Enterprise Reliable & Trustworthy Enterprise Jiangsu Provincial Government, 2004Jiangsu Provincial Government, 2004Gold award for new productsGold award for new products2003 PRC International Silk Fair2003 PRC International Silk Fair

Growing Integrated CapabilitiesGrowing Integrated CapabilitiesOne of the few enterprises with capabilities to provide yarn,fabOne of the few enterprises with capabilities to provide yarn,fabric ric & garment manufacturing & garment manufacturing

Able to provide oneAble to provide one--stop high valuestop high value--added manufacturing servicesadded manufacturing servicesEnjoy synergistic benefits ;Enjoy synergistic benefits ;

Cost savings in marketing activities & wider reachCost savings in marketing activities & wider reachGreater flexibility & competitiveness in pricingGreater flexibility & competitiveness in pricingBetter control over product quality & deliveryBetter control over product quality & delivery

Competitive Strengths Advanced Manufacturing FacilitiesAdvanced Manufacturing Facilities

Continuously upgrade facilities & capabilitiesContinuously upgrade facilities & capabilitiesInvest in new equipment & technical training of employeesInvest in new equipment & technical training of employees

Able to manufacture more highAble to manufacture more high--end productsend products

Strong R & D CapabilitiesStrong R & D CapabilitiesOur new product development & expanding product range Our new product development & expanding product range is driven by our R&D efforts and advanced technological is driven by our R&D efforts and advanced technological capabilities capabilities

Develop new products which are more versatile and are of Develop new products which are more versatile and are of better qualitybetter qualityDevelop approx 200 new designs & styles yearly to meet Develop approx 200 new designs & styles yearly to meet customerscustomers’’ requirements requirements

Established Sales & Marketing Network Established Sales & Marketing Network Covering key apparel manufacturing cities of Shanghai, Covering key apparel manufacturing cities of Shanghai, Shenzhen,Hangzhou & Hong KongShenzhen,Hangzhou & Hong KongAble to maintain close relationships with customers & respond Able to maintain close relationships with customers & respond promptly to requirements promptly to requirements Well established relationships with over 300 customersWell established relationships with over 300 customers

Competitive Strengths

Experienced Management Team Experienced Management Team Core management team has over 10 years of experience eachCore management team has over 10 years of experience each

Established wide network of contacts & customersEstablished wide network of contacts & customersSupported by experienced professionals who run the operations Supported by experienced professionals who run the operations

Financial HighlightsSection 3

Growing Revenue

54.4

115.7

173.2190.5

67.885.7

020406080

100120140160180200

* 2001 FY2002 FY2003 @FY2004 HY2003 HY2004

•From 7 Jun – 31 Dec 2001 @ estimated figures

RMB’mil

Revenue growth driven by:

Increase in demand for silk productsExpansion of our sales network, improvements in product quality, development and promotion of new products, especially mixed spun silk fabrics

FY: Financial year ended 31 DecemberHY: Half year ended 30 June

Revenue by Products

69.7%

1.2%

29.1%

YarnFabricsGarments

77.0%

8.7% 14.3%

FY2002

FY2003

FY: Financial year ended 31 December

54.4

112.2

3.6

157.2

16

64.2

3.5

72.0

13.7

0

20

40

60

80

100

120

140

160

*2001 FY2002 FY2003 HY2003 HY2004

PRC Overseas

Revenue by Geography

RMB’mil

* 7 Jun to 31 Dec 2001

FY: Financial year ended 31 DecemberHY: Half year ended 30 June

PBT & Net Profit

2.81

10.4

6.2

13.5

9.8

18 18

4.32.6

8.9 8.9

02468

1012141618

*2001 FY2002 FY2003 @FY2004 HY2003 HY2004

PBT Net Profit

RMB’mil

* 7 Jun to 31 Dec 2001 @ estimated figures

FY: Financial year ended 31 DecemberHY: Half year ended 30 June

PBT Margins

FY: Financial year ended 31 DecemberHY: Half year ended 30 June

* 7 Jun to 31 Dec 2001

%

4.9

7.4

9.9

5.5

10.3

9.7

0

2

4

6

8

10

12

*2001 FY2002 FY2003

Yarn Fabrics

3.9

8.2

5.9

8.2

12.2

00

2

4

6

8

10

12

14

HY2003 HY2004

Yarn Fabrics Garments

%

Growth & Expansion PlansSection 4

Clear Growth Strategies & Future Plans

Garment manufacturing business Garment manufacturing business Commenced in Aug 2004Commenced in Aug 2004Emerging as a pillar of growthEmerging as a pillar of growthRecorded gross profit of Recorded gross profit of RMB868,000 for HY2004 compared RMB868,000 for HY2004 compared to RMB740,000 for FY2003to RMB740,000 for FY2003

Strong potential for growth in WTO Strong potential for growth in WTO post quota era from 2005 post quota era from 2005

Forward Integration

Clear Growth Strategies & Future Plans

Backward Integration

Cocoon FarmingCocoon FarmingDevelopment of a silkworm cocoon agriDevelopment of a silkworm cocoon agri--produce facility produce facility

Signed lease with Guizhou Pingba Fruit Signed lease with Guizhou Pingba Fruit Tree Agricultural OrchardTree Agricultural Orchard5,000 mu (approx 3.34 million sq m) facility 5,000 mu (approx 3.34 million sq m) facility in Anshun Prefecture in Guizhou Provincein Anshun Prefecture in Guizhou Province

Gives company security over supply lines, Gives company security over supply lines, control over quality of raw materials and control over quality of raw materials and cost savings cost savings

Minimize price fluctuations and improve Minimize price fluctuations and improve margins ( raw materials constitute 76margins ( raw materials constitute 76--82% 82% of COS ) of COS )

Clear Growth Strategies & Future Plans

Enhance Capabilities

Research & Development Research & Development Focus on R & D to increase product Focus on R & D to increase product range & continuously improve the quality range & continuously improve the quality of our products of our products

Manufacturing capacity Manufacturing capacity Expand manufacturing capacity & Expand manufacturing capacity & capabilities by 10capabilities by 10--20% from proceeds 20% from proceeds raised raised

Current utilization rates of 80Current utilization rates of 80--84%84%Strategic acquisitions,investments or JVsStrategic acquisitions,investments or JVs

To increase competitive edge, strengths To increase competitive edge, strengths and expand market baseand expand market base

Clear Growth Strategies & Future Plans

Increase Market Penetration

Leverage on existing customer base & expand Leverage on existing customer base & expand sales networksales network

Increase sales to garment manufacturersIncrease sales to garment manufacturersCollaborate directly with international Collaborate directly with international apparel companies apparel companies Expand sales force in Hangzhou & Expand sales force in Hangzhou & ShanghaiShanghai

Increase participation in trade fairs and Increase participation in trade fairs and exhibitions to promote products and servicesexhibitions to promote products and services

Investment MeritsSection 5

One of the PRC leading spun silk manufacturers Over 18 years of experience, with a well established customer base and strong R & D capabilities

Major player in a growing industry

Investment Merits

Forward & Backward integration strategy will give the company a larger earnings base & improve their margins These together with plans to enhance capabilities will enable the company to become a one stop service provider for its customers

Clear Growth Plans

Strong revenue and profit growth Attractive margins

Margins poised to improve further once cocoon farm commences operations

Attractive dividend yield of 5% for FY05

Strong Financial Performance

Thank YouThank You