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Corporate PresentationMay 2006

Warderly International Holdings Limited

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Contents

1. Company Introduction1. Company Introduction

2. Business Review2. Business Review

3. Production Plant 3. Production Plant

4. Distribution & Marketing 4. Distribution & Marketing

5. Future Plan & Products5. Future Plan & Products

6. Financial Summary6. Financial Summary

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Company Snapshots

1989 Established by Mr. K.W. Yeung, ChairmanA fully integrated ODM / OEM manufacturer offering wide variety ofelectrical appliances

2002 Listed on the Main Board of Hong Kong Stock Exchange (SEHK: 607)

2003 The Cathay Investment Fund Limited (Irish Stock Code: CATHAYI ID)acquired 10% of Warderly’s shares

2005 Appointed as authorized distributor of global household appliancesbrand “GE Appliances” in Hong Kong and Macau

Introduce advanced home and vehicle security alarm devices andkitchen appliances to diversify product portfolio

Arranged a syndicated loan of HK$200 million for factory expansion and financial working capital

2006 Will complete production expansion

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Corporate Mission

To be the leading integrated

ODM / OEM manufacturer

offering a wide variety of

electronic and electrical appliances

for worldwide markets

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Business Review

• Fans & Heaters Division:– Quartz Heater experienced a strong sales growth 

– Product diversification: Introducing new fan and heater products

– Successfully launch the panel heater models which receive a very positive response from northern European markets

– Enhance the product portfolio to eliminate the adverse impact brought by rise in raw material price

– Fan and heater products accounted for 94% of the overall Group’s turnover in 2004 / 2005

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Business Review

2. Kitchen Appliances Division:

NewPartner

Partnered with Triangle

Design House (French

designer) to develop

a total of 21 new models

Attracted

new customers like

Westbend,

Black & Decker, Bettycrocker, Bush, Siplec

NewClient

Achieved total sales of

20M for Q1 to Q3 (10% of

total sales)

SalesQ1 – Q3

Gross margin: 15-25%

(depends on product type)

GM15-25%

NewModel

Launched 15 new models

including coffee makers,

blenders, food processors

& hand mixers

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Business Review

Re-positioning

Repositioningstrategy to

switch emphasis from home electronics products to specialized electronics products,

the latter provides stable margin

PrimaryObjective

Introducing electronics elements to

existing home appliances

andbroadening

product range

To manufacture transponders for

an Australian technology

company(used for vehicle &

home security, vehicle tracking & monitoring)

Contract value

exceeds

HK$ 70 million

Car Alarm

Gross margin: 8-12%

(depends on product type)

GM8-12%

3. Electronics Products Division:

Achieved total sales of

6M for Q1 to Q3

Sales

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Business Review

4. Distribution Division:

Signed GE authorizeddistributor contract

in January 2005

In the process of building up local distribution network

including retails shops like GOME, CMK,

Chung Yuen, SOGO, UNY, Best Denki (over 100 outlets)

Start ODM business with Hong Kong

major importers such as Li & Fung, Shun Hing

Due to late shipment of GE products, sales actually

commenced in Q2

Further expand distribution of

in-house brands “Regent” & “Homemax”

products

Achieved sales of 9M for Q1 to Q3

Gross margin: 15-20% (depends on product

type)

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Production Plant

1. Dongguan Plant

Total Gross

Floor Area

93,500m2

No. of production

staff & workers2000

Assembly linesFans & Heaters x 5

Specialized electronics products x 4Automatic powder coating x 3

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Certifications

Dongguan Ka Lee Electrical Co. Ltd.

ISO 9001 (Year 2000) successfully

renewedAlso obtained 3C Certificate

for fans & heaters

(available for sales

In the PRC)

Attestation for

conducting on-site witness projects(TUV

Hong Kong Ltd.)

Certification of

Qualification (UL Int’l Ltd.)

to participate in Underwriters Laboratories

Inc. Witnessed Test Data Program

Air-to-Air Heat Recovery

Ventilator was accredited 2005

Hong Kong Industries Awards:

Machinery and Equipment

Design: Certification of

Merit

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Certifications

Air-to-Air Heat Recovery Ventilators

Mosquito TrapsUse TiO2, Co2, PCO to

capture mosquitoes

Anti-Virus Ozone

VentilatorsCo-invented &developed by

Newstarts (HK) Ltd.

(sub. of CityU)

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Vertically Integrated Production Process

Coiling

Coil Insertion

Fan Guard ProductionMetal Processing

Plastic Injection

Molding

Motor Assembly

Semi-automatic Painting

Product Assembly

photo

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Flexibility Combats Seasonality

Flexible Manufacturing BaseFlexible Manufacturing Base

AutumnAutumnHeaters;

Kitchen Appliances;BBQ Grills;

EMS

SpringSpringFans;

Kitchen Appliances;Mosquito Traps;

BBQ Grills

WinterWinterHeaters;

Kitchen Appliances; BBQ Grills;

EMS

SummerSummerFans;

Kitchen Appliances;Mosquito Traps

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Robust R&D

• Over 200 professional engineers, product designers and technical staff

• More than 50 new products and/or models launched in every year

• New product divisions: – Kitchen ware products– Consumer electronics products

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Diversified & Global Clientele

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Marketing & Promotion

Local Exhibitions:Hong Kong

Electronics Fair 2006Hong Kong

Spring Fair 2006

PRC Exhibitions:Canton Fair 2006

3C Expo 2005

Overseas Exhibitions:2005 ISH Frankfurt

Hong Kong In Style, Dubai 2006

Domotechnica 2006

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Future Plan: Growth Strategy

• Electrical appliances products range from

electrical fans to heaters, oil-filled radiators, as

well as other household kitchen appliances

• Brand names including “Regent”, “Housely” and

“Homemax”

• Introduce electronic-based elements to home

appliances products

• Manufacture specialized electronic products

such as security alarm devices for vehicle

tracking and monitoring

• Introduce new models for heaters (quartz

heaters and panel heaters)

Product Diversification

• Continuously strengthen overseas market

presence in Europe, North America, etc

• Expand sales and distribution network to new

emerging markets such as the PRC and other

Asian countries

• Appointed as the Authorized Distributor of “GE

Appliances” in HK & Macau

Market Expansion

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BBQ GrillBBQ Grill

Future Products

Kitchen Appliances (21 new models)

Kitchen Appliances (21 new models)

Wet & Dry Vacuum CleanerWet & Dry Vacuum Cleaner

Car Alarm Transponders

Car Alarm Transponders

Automatic Towel DispenserAutomatic Towel Dispenser

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Financial Summary

(HK$’000)

Turnover

Gross profit

Profit attributable to shareholders

Basic EPS

Total dividend per share

May 05 – Jan 06

202,118

29,318

6.95 HK cents

78,891

N/A

May03 – Apr04

291,219

67,883

17.2 HK cents

129,272

4.0 HK cents

- HK cents 1.2 HK cents

- Final

- Interim

Dividend payout N/A 30.2%

May 04 –Apr 05

337,499

58,014

13.7 HK cents

132,245

2.5 HK cents

1.5 HK cents

29.2%

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Turnover by Markets

Europe60%

Asia (inl. the PRC)

26%

North America

9%

Australia & New Zealand

4%Others

1%

Europe57%

Asia (inl. the PRC)

27%

North America

14%

Australia & New Zealand

1%Others

1%

Europe62%

Asia (inl. the PRC)

25%

North America

13%

May 05 – Jan 06

May 03 - Apr 04

May 04 - Apr 05

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Local Distribution 4%

Air Ventilation Products

2%

Turnover by Products

Fan60%

Convention Heater, Quartz Heater & Oil-filled Radiator

36%

Motor3%

Others 1%

Fan56%

Motor2%

Others 2%

Fan27%

Kitchenware10%

Others 2%

Electronics3%

May 05 – Jan 06

May 03 - Apr 04 Apr 04 - May 05

Convention Heater, Quartz Heater & Oil-filled Radiator

38%

Convention Heater, Quartz Heater & Oil-filled Radiator

54%

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Solid Financial Foundation

31 October 2005(HK$’000)

Cash position

Gearing ratio (Net Debts/ Total Assets)

Inventory turnover days

Debtors turnover days (Exclude discount bills)

Net asset value

98,723

27%

190 days

90 days

325,010

Current ratio 2.05X

30 April 2005

127,227

14%

122 days

88 days

315,117

1.91X