Business Communication

Supply Chain Result Review

The Group's turnover in 2010 increased by 19% to US$15,912

million (approximately HK$124 billion), reflecting relatively better

consumer sentiment compared to the year before. At the same

time, significant expansion in our United States and European

onshore businesses have resulted in robust core operating profit

growth for the year for the Company as a whole.

* Total Margin increased by 37%, increasing as a percentage of

turnover from 12.17% to 14.07%

* Core Operating Profit increased by 42%; Core Operating Profit

Margin increased from 3.82% to 4.56%

* Profit Attributable to shareholders reached HK$4,278 million,

representing an increase of 27% compared to 2009

n Hong Kong, Li & Fung is now one of the largest multinational trading companies in the developing world with annual sales of more than 4 billion dollars in 2002. Now, the company sees itself as an expert in supply chain management for its 350 or so major customers, providing the convenience of one-stop shopping for raw material sourcing, production planning and management, quality assurance, export documentation and shipping consolidation. Today, Li & Fung sources and manages the global supply chain for high-volume and time-sensitive consumer goods for large and successful companies such as The Limited, Warner Brothers, Avon etc.

Business Model: Business model of Li & Fung contains the following important aspects:

Customer segments: Li & Fung used to do simple sourcing: a customer asks to procure A at $X, and it finds a factory that Established in Hong Kong, Li & Fung is now one of the largest multinational trading companies in the developing world with annual sales of more than 4 billion dollars in 2002. Now, the company sees itself as an expert in supply chain management for its 350 or so major customers, providing the convenience of one-stop shopping for raw material sourcing, production planning and management, quality assurance, export documentation and shipping consolidation. Today, Li & Fung sources and manages the global supply chain for high-volume and time-sensitive consumer goods for large and successful companies such as The Limited, Warner Brothers, Avon etc.

Business Model: Business model of Li & Fung contains the following important aspects:

Established in Hong Kong, Li & Fung is now one of the largest multinational trading companies in