TRUE STORIES. KAM HING International Holding Ltd.: A preferred partner of International Fashion Apparel Brand operators

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1 TRUE STORIES KAM HING International Holding Ltd.: A preferred partner of International Fashion Apparel Brand operators

2 KAM HING Company s core business: Vertically integrated operations, which include marketing and sales, research and development, production processes including knitting, fabric dyeing and yarn dyeing, and fi nal processing, such as setting and pre-shrinking. Location: Panyu District, Guangzhou City, Guangdong Province, China Annual production/capacity: Yarn dyeing over 40 million pounds; knitting over 100 million pounds of grey fabrics and more than 2 million pounds of collars; fabricdyeing capacity over 130 million pounds Number of employees: 9,000 Benefits and use of the XO-Steaming Process: Yarn humidifi cation, twist relaxation, heat-setting, fi xation

3 KAM HING International Holding Ltd. KAM HING International Holding Limited is a Hong Kong-based corporation listed on the Stock Exchange of Hong Kong and has highly vertically integrated operations, which include marketing and sales, research and development, production processes including knitting, fabric dyeing and yarn dyeing, and final processing, such as setting and pre-shrinking. KAM HING was founded in 1996 and was listed in 2004 as KAM HING International Holding Ltd., at the Stock Exchange of Hong Kong Limited. Today, the company has evolved as one of the largest fi nished knit fabric producers in the PRC. The manufacturing facilities in the Panyu District, Guangzhou, encompass a large knitting facility with over 400 circular knitting machines, a yarn dye house with 120 dyeing machines, as well as a piece dyeing and fi nishing facility with over 230 dyeing units. The company maintains its own 25 MWh power plant, as well as modern water supply and sewage treatment facilities.

4 by quality control staff. Thus the normal period from order to delivery is usually just 25 days, depending on the complexity and urgency of the order. Equipped with vertically integrated production facilities, the Group is able to handle a wide range of fabric production procedures including fabric knitting, dyeing, setting and fi nishing. The Group is therefore capable of producing a variety of fi nished knitted fabrics to meet its customers different specifi cations and requirements. Different fabric products are derived from the combination of various cotton counts and knitting methods. These products are available in a wide range of colors and also in specially designed patterns. Business Scope of KAM HING As a supplier of fabrics to retail brands such as GAP, Target, MAY, Eddie Bauer, Federated Department Stores and others, the company KAM HING is committed to highest quality standards and is accredited with ISO 9001:2000 certifi cate. Automation and quality control create optimization The Group s production processes are effi ciently run using hi-tech automated equipment imported from Italy, Germany, Switzerland, Hong Kong, and Singapore. Each process step is also stringently monitored Pre-steaming of yarns prior to knitting KAM HING is using the XORELLA Process for the treatment of yarns prior to knitting. XORELLA conditioned knitting yarns have considerably less liveliness and show enhanced performance in knitting. Moisture addition contributes to less dust and lint fl y during knitting and reduced electrostatics during the process. Increased knitting effi - ciency and fewer defects are known benefi ts of the XORELLA steaming of knit yarns. Typically, yarns for knitting are waxed during the cone-winding process. The XO-Steaming Process at 55 C assures that the coeffi - cient of friction remains very low and constant from the beginning to the end of the yarn package. Better loop defi nition of the knit fabric provides advantages all the way to the fi nished knit garment. Mr. Chong Chau Lam, Executive Director of KAM HING, explains: One of our special applications of the XORELLA steaming process is the twist-setting of yarns for knit terry fabrics. The Steaming Process minimizes the yarn torque, thus assisting in stability of the terry loop. Better loop defi nition is an advantage in the napping and shearing process. Our fi nished fabric quality after the raising and fi nishing is excellent. As a producer of sewing thread, KAM HING also utilizes the XORELLA process for stabilization

5 COTTON SPINNING COTTON YARN PURCHASE KNITTING YARN/THREAD DYEING MANUFACTURING FABRIC DYEING KNITTING PURE COLOR FABRIC MIXED COLOR FABRIC SEWING THREAD YARN SETTING FINISHING GARMENT MANUFACTURING SALES SALES PURE COLOR FABRIC MIXED COLOR FABRIC GARMENT SEWING THREAD YARN FINISHED PRODUCT RETAILING

6 of thread yarn. The XO-Steaming Process with specially designed parameters for sewing thread treatment provides for excellent thread properties, and optimal sewability. We are very pleased with the performance of our XORELLA machine. Our company is currently evaluating additional and very promising applications of the XORELLA steaming process that can substantially benefi t the quality of our fi nished knit fabrics, stated Mr. Chong Chau Lam. Efficiently meeting world s demands In the coming years, KAM HING will continue its impressive progress worldwide through the implementation of a number of pro-active strategies that include expansion of a second knitting factory in Guangdong, enhancing knit fabric dyeing and yarn dyeing capacities, and the diversifi cation of its customer base to capture domestic market share. In 2006, KAM HING created its own garment-making facility in Madagascar, able to produce 90,000 dozen crew neck tee and 60,000 dozen of polo garments per month.

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8 XORELLA AG Hardstrasse 41 CH-5430 Wettingen Switzerland XORELLA (HK) Ltd. 8/F., Cheung Tat Road Tsing Yi, Hong Kong

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