Investment Highlights A well-developed garment sourcing management group operating a one-stop shop business model Maintains in-house production facilities in the PRC and Indonesia as well as outsourcing production capabilities to flexibly adjust production time and volume requirements, while optimizing resource allocation Capability to provide a comprehensive range of sourcing management services covering the entire supply chain functions of garment products Strong design and development ability with in-house sample workshop capable of producing a wide range of samples and within lead times of approximately 24 hours from receipt of sketches Sales supporting and/or customer services supported by offices in the U.S., the PRC, Hong Kong and Macau, and a representative in Canada Direct client base comprising brand owners/carriers, megastores, department stores and supermarket chains PRC Factory adopts “Just-in-time” production system, an efficient and labour-saving manufacturing system and produces garment products with fashionable and complicated styles, patterns and designs Growth strategy of developing its own “夢仕臣” (Monstons) brand underwear and homewear products in the PRC retail market

Hong Kong, 16 September 2010 - Ford Glory Group Holdings Limited (“Ford Glory” or the “Company”; Stock code: 1682), a well-developed garment sourcing management group, today announced details of its proposed listing on the Main Board of the Stock Exchange of Hong Kong (“SEHK”). The listing represents a spin-off from Victory City International Holdings Limited (“Victory City”; Stock code: 539), which will remain as the controlling shareholder interested in approximately 72.522% of Ford Glory immediately after the spin-off.

Ford Glory will offer a total of 118,000,000 Shares (“Global Offering”), of which 59,000,000 Shares, or 50% of the Global Offering, will be offered to the public in Hong Kong (“Hong Kong Public Offering”). The Hong Kong Public Offering includes the Preferential Offering, under which the Company will offer 21,281,983 Shares, or approximately 18.04% of the Global Offering, for subscription by Qualifying Shareholders of Victory City, and also the Employee Preferential Offering, under which the Company will offer 5,900,000 Shares, or approximately 5% of the Global Offering, for subscription by the Eligible Employees of the Company on a preferential basis. 59,000,000 Shares, or 50% of the Global Offering, will be offered by way of an International Placing to professional, institutional and/or other investors. The offer price will not be more than HK$0.60 per Share and it is expected to be not less than HK$0.50 per Share. CIMB Securities (HK) Limited is the bookrunner, sponsor and lead manager of the Global Offering, with Mizuho Securities Asia Limited as co-lead manager.

The aggregate net proceeds from the issue of Offer Shares, after deducting the underwriting commissions and other estimated expenses payable by the Company in relation to the Global Offering, will be approximately HK$46.2 million, based on the mid-point of the indicative offer price range. The proceeds are intended to be used as follows:

• approximately 50% to establish new production facilities, acquire new production equipment, upgrade existing equipment and establish joint ventures or enter into cooperation with strategic business partners and for mergers and acquisitions of garment factories;
• approximately 15% to strengthen its sample design and development capabilities and expand its sample workshop;
• approximately 5% to strengthen promotional and marketing efforts, in particular in the PRC and the U.S.;
• approximately 20% to develop “夢仕臣” (Monstons) brand underwear and homewear products in the PRC;
• approximately 10% for working capital and other general corporate purposes.

Ford Glory is a well-developed garment sourcing management group with production capabilities which operates a one-stop shop business model. The Company provides a comprehensive range of sourcing management services covering the entire supply chain functions of garment products. It sources garment products for customers and also provides them with a comprehensive range of sourcing management services and expertise, including product design and development, sampling, product offering, sourcing, in-house production, outsourcing, logistics and delivery and overseas sales capabilities. Principal products of the Company include Cut-and-Sew knitwear, Knit-to-Shape sweater and woven products.

The Company maintains a direct client base comprising overseas brand owners/carriers, megastores, department stores and supermarket chains mainly located in the U.S., Canada, the U.K., Mexico, Japan and the PRC. It also sources garment products for importer customers. U.S. is the Company’s most important market, accounting for approximately 57.4% of the Company’s revenue for the year ended 31 March 2010.

The Company has sales support and/or customer services offices in the U.S., the PRC, Hong Kong and Macau, and has a representative in Canada. Its comprehensive importing services include the arrangement of product delivery “door-to-door” from its facilities or facilities of its sub-contract manufacturers to customers’ designated location at an aggregate production cost. Such importing services arrangement is provided to customers in the U.S. and Canada.

Maintaining in-house production facilities in the PRC and Indonesia, as well as outsourcing production capabilities supported by a wide and established network of sub-contract manufacturers, the Company is able to cater for customised orders. As a result, it is able to provide a wide range of garment products. The Company makes flexible decisions on whether to outsource production and the choice of sub-contract manufacturers based on the cost and pricing, quality standard requirements, capability and capacity of sub-contract manufacturers, and tax benefits for customers.

The PRC Factory, located in Jiangmen (江門), Guangdong Province, and being the Company’s largest production plant, is equipped with advanced and computerised machinery. It adopts the “Just-in-time” production system, an efficient and labour saving manufacturing system, to ensure that materials and goods arrive only as they are required at a particular manufacturing point in a production line.

The PRC Factory produces garment products with fashionable and complicated styles, patterns and designs and the Indonesia Factory, on the other hand, supports the Company’s production requirements for apparels of simple and classic styles.

In-house production is supplemented by a wide and established network of sub-contract manufacturers located in the PRC, Cambodia, Madagascar and Vietnam. The Company maintains good relationships with its sub-contract manufacturers, while designating a quality assurance and control team to oversee the performance of these manufacturers at different stages of production.

For the financial year ended 31 March 2010, approximately 29.9% of the Company’s total costs of sales attributable to the manufacture of garment products were incurred by its in-house production team, while the remaining approximately 70.1% were costs of outsourced products and processing fees paid to sub-contract manufacturers.

Mr. Choi Lin Hung, chairman and chief executive officer of Ford Glory, said: “Unlike some of our competitors who outsource the entire manufacturing process, we operate our in-house facilities supplemented by strong outsourcing capabilities. With our in-house facilities, we can produce within a short lead time and are flexible in adjusting production time and volume. We can also adjust our offerings promptly to be responsive to customers’ specific needs and market demands. On the other hand, our outsourcing capabilities enable us to achieve greater flexibility in allocating our resources with minimal capital commitment. We can also leverage on the expertise, knowledge and equipment of our sub-contract manufacturers. This one-stop shop business model gives us a sustainable competitive edge.”

Equipped with design and development capability and an in-house sample production workshop, the Company is able to develop samples and in-house designs within a short lead time. The workshop has the capacity to produce approximately 1,000 samples every week to suit the requirements of customers. With its in-house sample workshop, the Company is able to develop samples within approximately 24 hours from the receipt of sketches from customers. Further, the Company can source raw materials from Victory City efficiently. This fabric sourcing capability also enables the Company to effectively develop garment products for customers at an early stage.

The Company’s stringent quality control procedures cover the entire process from procurement of raw materials to each of its production processes, as well as the activities of sub-contract manufacturers. The Company’s consistent commitment to providing high-quality and timely services to customers has won it awards from companies including Semir Group, Sears, Li Ning and Forever 21 over the past three years.

The Company will pursue growth through expanding its manufacturing facilities to cater for the anticipated demands from its major customers with reputable brands. It may also acquire existing garment factories or enter into joint ventures or other forms of cooperation with other business partners.

It also targets to diversify its business model by entering into the fast-expanding retail market in China. It aims to sell its “夢仕臣” (Monstons) brand underwear and homewear products in large chain supermarkets in the PRC on a consignment basis, targeting the mass market. The entry barrier for the underwear and homewear market in the PRC is relatively low and as seasonality is not a major influencing factor in this market, obsolete stock is not common. The Company plans to expand the retail network for this brand to 200 and 300 points of sales in the PRC by 2010 and 2011 respectively. Orders have already been received and retail sales commenced in August 2010 at approximately 200 sales points. It is expected that the profit margins for the “夢仕臣” (Monstons) brand products will be higher than that of its garment sourcing business.

Also under way is the planned acquisition of an effective 70% interest in the assets of an apparel production and sales business under the name of “teelocker”. This proposed acquisition will further diversify the Company’s business model and enable it to enter the retail markets in Hong Kong, Taiwan and the PRC. The Company also plans to cooperate with a casual wear brand targeting the youngsters’ market in the PRC. Opportunities are being considered for forming joint ventures with importers in the U.S. to enhance the market share of the Company and those importers.

Based on the unaudited management accounts of the Group for the four months ended 31 July 2010, the Group’s turnover for the four-month period is comparable to the corresponding period of last year. The Company’s directors are optimistic that the Group will be operating in a fairly stable environment for the year ending 31 March 2011.

The Hong Kong Public Offering will open starting at 9:00 a.m. on Friday, 17 September 2010, and close at 12:00 noon on Wednesday, 22 September 2010. Dealings in the Shares on the SEHK are expected to commence on Tuesday, 5 October 2010.

White Application Forms and Prospectuses can be obtained from any of the Global Offering underwriting syndicate members, or any of the designated branches of The Hongkong and Shanghai Banking Corporation Limited. Applicants can effect their applications online via the designated White Form eIPO Service Provider at www.hkeipo.hk; Yellow Application Forms and Prospectuses can be obtained from the HKSCC or from the applicant’s stockbroker, who may have such Application Forms and Prospectuses available.

Offer Statistics

Offer size	118,000,000 shares representing 26.94% of enlarged share capital
Offering structure
- International Placing (Note)	59,000,000 shares
- Hong Kong Public Offering (Note)	59,000,000 shares (including 21,281,983 Reserved Shares for the Qualifying Shareholders of Victory City and 5,900,000 Shares for the Eligible Employees of the Company on a preferential basis)
Offer Price	Not more than HK$0.60 per Offer Share and expected to be not less than HK$0.50 per Offer Share
Market capitalization	HK$219 million (based on Offer Price of HK$0.50 per Share) HK$263 million (based on Offer Price of HK$0.60 per Share)
Historical P/E multiple	6.17 times (based on Offer Price of HK$0.50 per Share) 7.41 times (based on Offer Price of HK$0.60 per Share)
Unaudited pro forma adjusted consolidated net tangible asset value per Share	HK$0.60 (based on Offer Price of HK$0.50 per Share) HK$0.63 (based on Offer Price of HK$0.60 per Share)
Stock code	1682
No. of Shares per board lot	4,000

Note: Subject to adjustment

Expected Timetable

Public Offer period	9:00 a.m., Friday, 17 September 2010 – 12:00 noon, Wednesday, 22 September 2010
Expected price determination date	Wednesday, 22 September 2010
Announcement of results of allocations	Monday, 4 October 2010
Listing date	Tuesday, 5 October 2010

Track Record

(In HK$’000)	Year ended 31 March
	2008	2009	2010
Revenue	1,430,890	1,284,268	894,351
Gross profit	196,896	161,488	157,989
Profit before tax	58,634	51,968	47,960
Profit for the year	56,313	48,475	40,845
Earnings per share - basic	16.2 cents	14.2 cents	11.1 cents