Mirabell International Holdings Limited and its subsidiaries (the "Group") are principally engaged in the retailing, wholesaling and manufacturing of footwear. It is one of the major footwear retailers, providing the widest range of products in the region.

Background

The Group was founded by Messrs Tang Keung Lam and Tang Wai Lam, and the first Mirabell outlets were opened in Nathan Road and the Park Lane Shopper's Boulevard, Tsim Sha Tsui in 1989, catering for the growing potential for quality fashionable footwear among young consumers.

Following the two pioneer shops which proved success, the Group went on to open shops in other prime locations in Hong Kong, and extended its presence into Macau, by opening a Mirabell outlet there in 1994. The year1997 marked the opening of the first Joy & Peace outlet in Guangzhou, followed by Mirabell and Joy & Peace outlets in both Beijing and Shenzhen. Meanwhile, the Group has also successfully secured arrangements with multinational brand names for exclusive distribution rights in the region.

Over the years, the Group has successfully demonstrated itself as a prominent retailer of footwear featuring trendy styles, wide variety of brand names, superior quality and value-for-money products.

Our Presence in Different Markets

Hong Kong and Macau
As of the end of April 2008, the number of our retail outlets in Hong Kong and Macau has grown up to 114, operating under the brands of Mirabell, Joy & Peace, Fiorucci, Inshoesnet and Geox.

We are the exclusive footwear distributor of many internationally renowned brand names, such as the U.S. brands of Caterpillar, Merrell, Royal Elastics and Sebago in Hong Kong, Macau and the Mainland China, and the Italian brand of Geox in Hong Kong and Macau; the exclusive footwear, bags and apparel distributor of the U.K. brand of Gola in Hong Kong, Macau and the Mainland China; and the exclusive footwear distributor of the U.S. brand of Harley-Davidson and -Patagonia in Hong Kong.

Mainland China
We have been developing actively for years in China. We have established 220 retail outlets at the end of April 2008 located in major cities such as Shenzhen, Guangzhou, Shanghai, Beijing, Tianjin, Dalian, Chengdu, Chongqing, Zhuhai, Xi'an, Wuhan, Wuxi, Dongguan, Harbin, Shijiazhuang, Panyu , Shenyang, Foshan, Hangzhou, Zhongshan, Changsha, Wenzhou, Changzhou and Kunming under the brands of Mirabell, Joy & Peace, Caterpillar, Merrell, Fiorucci , Innet and Kokopelli. There are also 146 franchised retail outlets under the brand of Joy & Peace in this market with tremendous potential.

Taiwan
Across the strait, we also have 17 retail outlets under the brand of Fiorucci in Taiwan.

The Mirabell Philosophy

"TOTAL CUSTOMER SATISFACTION" is our all-time principle. We aim to achieve "Total Customer Satisfaction" through "Total Devoted Staff", that is, to foster a culture of total devotion to customers to provide first-class service. It is this philosophy for service excellence, embedded in our training and brought into life in our stores, that differentiates Mirabell from others.

Our Strengths

One-stop Shops in Prime Locations
Mirabell provides its customers with one-stop shopping experiences, making footwear of different brand names available in one shop. We have established one of the largest shoes retailing networks in Hong Kong with outlets strategically located in prime shopping areas to capture high level of pedestrian traffic.

Competitive pricing
Bulk procurement from its suppliers has allowed the Group to obtain favourable prices directly from manufacturers and distributors. Effective cost controls are also in place to maintain high operational efficiency. Thus, the Group has built up a "value-for-money" reputation for its good quality products at competitive prices.

Advanced Sales and Inventory Systems
The computerized point-of-sale data capture system connects all retail outlets with the head office to allow the Group analyze sales data daily and gauge actual customer demands. The system also facilitates efficient stock replenishment from our warehouses to outlets within 48 hours.

Solid Financial Foundation
Our sound liquidity, reasonably low gearing and conservative balance sheet create a solid financial basis. All these equip the Group with the capability to overcome difficult times and seize business opportunities timely, successful examples of which have been seen in our history.

Responsive and Innovative Management
Our management is highly responsive and innovative, keeping pace with the fast-changing business environment with strong market alertness. The management maintains a balanced expansion pace of the Group and focuses on cost control and operational efficiency. For example, the management ceased the operations of some non-performing retail outlets and opened more counters at well-positioned department stores, which enhanced overall performance.

Our Strategies

Multi-brand Business model
The Group offers a wide range of footwear products sold at varied retail price, targeted at different customer segments. The Group will continue to keep abreast of changing market trends and identify footwear products that are distinctive in the market to differentiate itself from its competitors.

Exclusive Distribution Rights
The Group also dedicates abundant resources to product development, marketing and securing exclusive international brand licenses to build a stronger product portfolio. It is our strategy to expand customer base through diversification of product mix, and review merchandising plans regularly to provide a product mix matching the ever-changing customer needs.

Development of Wholesale Businesses
Our management sees the importance in the development of wholesale businesses, as they reduce purchasing costs and raise gross profit as well as provide the Group with a synergy effect in terms of further strengthening the product mix, brand development and promotion.

In addition to the Hong Kong market, the Group is devoted to expand the wholesale business to China. To this end, in 2003, the Group has established Senses Marketing Hong Kong International Limited which is principally engaged in wholesaling of footwear and has become the sole footwear distributor of well-known brands in Hong Kong, Macau and China.

Meet Our Teams
As at 29 February 2008, the Group has a total of 2,040 employees. We are proud of our totally devoted retail team, our highly responsive shop managers and professional buying team.

At the Group's training centres, employees are trained and educated on service standards, corporate value, professional selling techniques, product knowledge and presentation skills. A broad range of classroom training and field coaching is provided.

Continuous training is always ongoing to persistently upgrade the standard of customer service for frontline retail staff. Besides, senior sales staff and shop managers also receive regular advanced training in service goals-setting and team-building, as well as updates on product trends.

The Group also trusts that the expertise of the merchandising team is crucial for it to preserve the cutting edge in this highly completive footwear industry that it regularly invests in merchandising and sourcing capabilities. Our buying team proves its merchandising expertise and ability to source a wide range of high quality products at competitive pricing in anticipation of forthcoming trends in footwear.

Our Commitments

We are committed to maintaining and enhancing the Group's leading role in the local footwear retail market as well as growing the Group in size and popularity within the Great China region. We will pursue continuous quality improvement of products and provide a comprehensive product mix to meet diverse customers' needs. Meanwhile, we will strive to provide our clients with excellent customer service beyond their expectations.

Looking Ahead

We will continue to reinforce brand development, pursue continuous quality improvement of products and level of customer service, as well as enhance operational effectiveness and efficiency. We are actively looking for more exclusive footwear distribution rights of well-known international brands.

Having accumulated several years of retail operations experience in China, the Group is well-positioned to consolidate our foothold and further speed up the pace of business development in the market. We will continue to look for business opportunities in the Greater China region and other Asian countries as a major drive for business expansion.

With low gearing ratio and sound financial position, we are confident that the Group is well placed to avail itself to future expansion and investment opportunities.

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