2

Agenda

1. Financial highlights

2. Revenue analysis

3. Income analysis

4. Balance sheet analysis

5. Development Progress of China Pearls and

Jewelry City Project (“CP&J Project”)

6. Outlook

1. Financial Highlights

For the six months ended September 30, 2008

• Revenue decreased by 5.0% to US$25.6 million

(2007: US$26.9 million)

• Gross profit margin increased by 5.1% to US$9.9 million

(2007: US$9.4 million)

• Earnings per share: US$0.18 (2007: US$0.25)

• Net assets per share: US$8.5 (2008/3/31: US$8.4)

3

4

Net Sales

27.2

48.5

24.8

51.1

26.9

81.2

25.6

0

10

20

30

40

50

60

70

80

90

2005/06 2006/07 2007/08 2008/09

1H

Annual

2. Revenue Review2. Revenue Review

Net Sales of the 1st half 2008/09 decreased by $1.3 million or 5% compared to the last corresponding period which principally due to slow down in demand of our core markets including US and other Asian countries.

(US$ Million)

5

2. Revenue Review – Pearl operation2. Revenue Review – Pearl operation

1H 2007/081H 2007/08

40.9%

5.2%

53.9%

Saltwater Pearls

Freshwater Pearls

Assembled Pearl Jewelry

Net Sales of Pearls by Product Type

1H 2008/091H 2008/09

63.4%

33.8%

2.8%

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2. Revenue Review – Pearl operation2. Revenue Review – Pearl operation

(US$ Million)1H2007/08 1H2008/09 Change %

Hong Kong 2.411.36

- 43.6%

Europe 9.95 11.05 11.1%

North America 7.80 5.63 - 27.8%

Other Asian Countries 5.31 4.11 -22.7%

Others 1.46 2.26 55.3%

Total 26.93 24.41 - 9.36%

Net Sales of Pearls by Region

2. Revenue Review – Real Estate operation2. Revenue Review – Real Estate operation

1H2007/08 1H2008/09 Change %

(US$ Million) (US$ Million)

Sales of propertiesSales of properties 0 　 1.2 N/A

Rental incomeRental income 0.3 1.6 433.3%

Revenue of Real Estate

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3. Income Analysis – Gross Profit Margin3. Income Analysis – Gross Profit Margin

38.5%

34.9%30.9%

27.7%

0

10

20

30

40

50

2005 2006 2007 2008

(%)

Gross Profit Margin (GP %) • Steady growth on GP margin.

For the six months ended September For the six months ended September 30,30,

8

9

2.82.5

3.1

2.90

5

10

15

20

25

(US$ Million)

2005/06 2006/07 2007/08 2008/09

1H

Annual

3. Income Analysis – Operating Income3. Income Analysis – Operating Income

4.1 3.4

Operating Income

21.0

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3. Income Analysis – Net Income3. Income Analysis – Net Income

Net income after minority interest

2.3

1.1

3.6

1.3

5.1

1.6

1.2

0

1

2

3

4

5

6

7

(US$ Million)

2005/06 2006/07 2007/08 2008/09

1H

Annual

3. Income Analysis –Earnings Per Share3. Income Analysis –Earnings Per Share

0.18

0.25

0.190.190.24

0.180.18 0.19

0

0.2

0.4

0.6

2005 2006 2007 2008

Basic earnings per share Diluted earnings per share

Earnings Per Share for the six months ended September 30,

11

(US$)

4. Balance Sheet Analysis4. Balance Sheet Analysis

(US$ Million)(US$ Million)As at 2008/3/31As at 2008/3/31 As at 2008/9/30 Change %

Shareholders’ Shareholders’ equityequity 53.3353.33 54.4054.40 2.0%2.0%

Total debtsTotal debts 25.6225.62 29.2329.23 14.1%14.1%

Gearing ratioGearing ratio 0.480.48 0.540.54 12.5%12.5%

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4. Balance Sheet Analysis – Net Assets Per Share4. Balance Sheet Analysis – Net Assets Per Share

(US$)(US$)As at 2008/3/31As at 2008/3/31 As at 2008/9/30 Change %

Stockholders Stockholders EquityEquity

53,330,00053,330,000 54,395,000 2.0%

No. of sharesNo. of shares 6,382,5826,382,582 6,382,582 -

Net assets per Net assets per shareshare $8.4$8.4 $8.5$8.5 1.2%1.2%

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5. Development Progress of CP&J Project5. Development Progress of CP&J Project

Planned Planned construction area construction area

(m(m22))Progress

Estimated Completion Date

4 Blocks of 4 Blocks of Manufacturing and Manufacturing and

Progress areasProgress areas

41,00041,000 Commencement of interior renovation

End of 2008 to mid of 2009

Residential AreasResidential Areas 33,00033,000 Completion of 5 storey construction

End of 2008 to mid of 2009

Multi-complex Multi-complex BuildingBuilding

26,00026,000

Completion of

all exterior structure

End of 2008 to mid of 2009

TotalTotal 100,000100,000

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6. Outlook 6. Outlook

Pearl Operation

We believe that the majority of markets where we operate will be negatively affected by the financial crisis during the second half of

fiscal year 2008.

We will continue to monitor the effects of the financial crisis in the markets where we operate and to adopt the appropriate business and financial management policies to ensure that we are able to

further develop our market share in core markets.

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6. Outlook 6. Outlook

Real Estate Operation

Recently, the PRC government announced an array of policies, including tax exemptions, a loosening of lending restrictions and a reduction of interest rates and mortgage deposit requirements, in an effort to encourage the development of the real restate market and domestic economy as a whole.

Although these new policies have not yet had a material impact on our operations, if the PRC government continues to promote policies aimed at stabilizing and maintaining growth in the real estate market, it may have a positive effect on our operations in the future.

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DisclaimerDisclaimer

This powerpoint contains identifying important factors that could cause actual results to differ from the projected results. All statements, other than statements of historical fact, including statements regarding industry prospects and future results of operations or financial position, made in this powerpoint are forward looking. Words such as “anticipates,” “believes,” “expects,” “future” and “intends” and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to: our future performance, our expansion efforts, demand for our products; the state of economic conditions and our markets; currency and exchange rate fluctuations; and our ability to meet our liquidity requirements. These forward-looking statements are based on assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe to be appropriate in particular circumstances. However, whether actual results and developments will meet our expectations and predictions depend on a number of known and unknown risks and uncertainties and other factors, any or all of which could cause actual results, performance or achievements to differ materially from our expectations, whether expressed or implied by such forward-looking statements (which may relate to, among other things, the Company’s sales, costs and expenses, income, inventory performance, and receivables). Primarily engaged in the processing and trading of pearls and pearl jewelry products, and in real estate investment, our ability to achieve our objectives and expectations are derived at least in part from assumptions regarding economic conditions, consumer tastes, and developments in our competitive environment. The following assumptions, among others, could materially affect the likelihood that we will achieve our objectives and expectations communicated through these forward-looking statements: (i) that low or negative growth in the economies or the financial markets of our customers, particularly in the United States and in Europe, will not occur and reduce discretionary spending on goods that might be perceived as “luxuries”; (ii) that the Hong Kong dollar will remain pegged to the U.S. dollar at US$1 to HK$7.8; (iii) that customer’s choice of pearls vis-à-vis other precious stones and metals will not change adversely; (iv) that we will continue to obtain a stable supply of pearls in the quantities, of the quality and on terms we require; (v) that there will not be a substantial adverse change in the exchange relationship between the Renminbi and the Hong Kong dollar or U.S. dollar; (vi) that there will not be a substantial increase in the tax burdens of our subsidiaries operating in the PRC; (vii) that there will not be a substantial change in climate and environmental conditions at the source regions of pearls that could have a material adverse effect on the supply and pricing of pearls; and (viii) that there will not be a substantial adverse change in the real estate market conditions in the PRC and in Hong Kong. The following discussion of our results of operation, and liquidity and capital resources should be read in conjunction with the financial statements and the notes thereto included elsewhere in this powerpoint and this powerpoint, which contains a further description of risks and uncertainties related to forward-looking statements, as well as other aspects of our business. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this powerpoint. We will not publicly release any revisions to these forward-looking statements after the date hereof. Readers are urged, however, to review the factors set forth in periodic reports that we file from time to time with the Securities and Exchange Commission.