1. 2 This powerpoint contains identifying important factors that could cause actual results to differ from the projected results. All statements, other.

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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 RMB$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.

DisclaimerDisclaimer

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Introduction of PresentersIntroduction of Presenters

Mr. Sonny HungMr. Sonny Hung

Executive Director

Mr. C K KwangMr. C K KwangAssistant Company Secretary

Mr. Martin PakMr. Martin Pak Chief Financial Officer

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One of the World Largest Pearl Merchants

One of the Largest Purchasers & Processors of Saltwater Pearls

Vertically integrated business including:

Purchasing

Processing & Assembling

Merchandising & Wholesale Distribution of Pearls and non-Pearl Jewelry products

Company OverviewCompany Overview

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Types of Cultured PearlsTypes of Cultured Pearls

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Company & Industry OverviewCompany & Industry Overview

GradingGrading

DrillingDrilling

WaxingWaxing

PolishingPolishing

BleachingBleaching

Man Sang Techniques

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PearlsPearlsOne of the World’s largest Pearl processors and merchants

Assembled Pearls and Non-pearl JewelryAssembled Pearls and Non-pearl JewelryVertically integrated

China Pearls and Jewellery City in Zhuji, Zhejiang –China Pearls and Jewellery City in Zhuji, Zhejiang – The World’s Largest Pearl & Jewelry Trading Platform

Core Business & DevelopmentCore Business & Development

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One of the World’s Largest Pearl Merchants

One of the World’s Largest purchasers and processors of saltwater pearls

One of the World’s largest processors and suppliers of Chinese Akoyas

Advanced pearl processing techniques

Subsidiary corporation MSIL (Stock Code: 0938), the first pearl company listed on the Hong Kong Stock Exchange in 1997

Over 25 years of professional experience in the pearl business

One-stop shopping services, full product range – pearl, pearl jewelry and non-pearl jewelry products

Provision “one-stop solution” to all customers

Vertically integrated business from purchasing, processing & assembling to merchandizing and wholesale distribution of Pearl and non-Pearl products

StrengthsStrengths

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Strengths (Cont’d)Strengths (Cont’d)

First pearl company in the PRC to obtain ISO 9001 certification Quality System Standard Certification

Professional sales and marketing team

Experienced management team – the Group founders have over 25 years of experience in business management of jewelry industry

Knowledge of market trends

Own and operate production base – Man Sang Industrial City in Shenzhen, PRC

Sound financial position

Bulk purchasing power and lower processing costs

Stable and long-term relationships with suppliers and customers

Well established and long history diversified customers profile

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WeaknessesWeaknesses

Narrow customer base – derive a large portion of sales from customers in Europe, North America and other Asian countries

Dependent on certain major customers

Dependent on certain major suppliers – The Five largest suppliers of the Group accounted for over 60% of supply

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OpportunitiesOpportunities

Brand extension - to sell directly to consumers

Distribution extension -to sell directly to retail & discount store chains (in China)

Marketing extension -to sell to corporate buyers

Vertically Integration - joined by five major pearls and jewelry players, established world largest pearl and jewellery trading platform in Zhuji, Zhejiang Province in PRC – Phase I expected to be complete late 2007

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ThreatsThreats

Global warming threatens pearl supply

Operate in a highly competitive industry – increasing competition

Business is heavily dependent on the global and regional economic environment

Exposed to pearls, diamond and bullion price fluctuations

Exposed to currency exchange fluctuations

Possibility of losing existing customers

Short product life cycle and fast replicas

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Net Sales

28.9

$52.9

35.2

$49.0

40.5$41.4

38.7

$48.5

38.5

0

10

20

30

40

50

60

US$ Million

2002/03 2003/04 2004/05 2005/06 2006/07

3rd Q

Annual

Financial PerformanceFinancial Performance

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Net SalesNet Sales

Net Sales by Product2002/032002/03

69.1%

10.8%20.1%

Seawater Pearls

Freshwater Pearls

Assembled Pearl Jewelry

56.2%37.5%

6.3%

2003/042003/04

45.8%45.7%

8.5%

2004/052004/05

2005/062005/06

43.0%

10.2%

46.8%

2006/072006/07

39.2%

6.7%

54.1%

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3.0

$2.7

1.7

2.7M

2.5

$3.2

3.4

$4.1

3.0

0

1

2

3

4

5

6

7

US$ Million

2002/03 2003/04 2004/05 2005/06 2006/07

Annual Result

3rd Q

Operating Income

Financial Performance (Cont’d)Financial Performance (Cont’d)

$3.7

$2.7

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Financial Performance (continued)Financial Performance (continued)

Net Income after Minority Interest

* Includes a gain on sale of a real estate investment amounting to US$4.4m

The translations of HK$ into US$ have been made at the exchange rate of HK$7.80 for US$1 for reference purpose

1.2

$1.1

0.4

$0.4

2.9

$3.5*

1.4

$2.3

1.8

0

1

2

3

4

5

6

7

US$Million

2002/3 2003/4 2004/5 2005/6 2006/7

Annual

3rd Q

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Gross Profit Margin is continue enhancing

Financial HighlightsFinancial Highlights

Net salesNet sales for 9 months ended December 31, 2006 decreased by 0.6% to US$38.48 million as compared to the same period last yearGross profitGross profit increased by US$131,000, or 1.2%, to US$10.69 million, as compared with the same period last year. Gross profit marginGross profit margin has increased by 0.5% to 27.8%

Net incomeNet income for the 9 months ended December 31, 2006 increased 25%, to US$1.8 million as compared to net income of US$1.44 million for the 9 months ended December 31, 2005.

Return on capitalReturn on capital employed (annualized net income/capital employed) increased from 5.29% for the period ended December 31, 2005 to 6% for the period ended December 31, 2006.

Return On Capital is continue enhancing

Net Income has great improvement

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For more information please visit CP&J web site at

http://www.cpjcity.com