(extracted from 2008 Annual Report)

On behalf of the board of directors (the "Board") of Wing Lee Holdings Limited (the "Company"), I present the audited consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 31 December 2008.

For the year, the Group achieved revenue of approximately HK$421 million (for the year ended 31 December 2007: HK$394 million), representing an increase of 6.8% as compared with the same period of last year. The loss attributable to equity holders of the Company was approximately HK$71 million (for the year ended 31 December 2007: a profit of HK$85 million), representing a drop of 184% as compared with the same period of last year, and the loss per share was HK20.09 cents (for the year ended 31 December 2007: earnings per share of HK23.65 cents).

Business Review

During the year of 2008, while the overall sales of the Group's electronics components manufacturing sector had registered an increase as production capacity improved, however, the major operating factors in China remained harsh, including drastic fluctuation in prices of raw materials and energy, enforcement of new labour law, Renminbi appreciation, lowered export tariff rebates, etc. They directly increased production and transportation costs, and severely impacted all export-oriented enterprises. Added to that, the hike in production costs had not been able to transfer fully to customers, resulted to a drop in profit ratio. The gross profit was unable to follow the pattern of the overall sales to surmount that of last year as well. In addition, the financial tsunami broken out in September 2008 caused global economic panic which led to substantial contraction in the electronic consumer products market. As a result, the number of orders received by the Group in the fourth quarter was severely affected, so was the sales that was growing.

Despite the fact that the year of 2009 will be a year of market adjustment and economic recovery, the Group is still fully confident in its prospect and has taken a series of actions, including: i) after the relocation of plant from Dongguan to Heyuan, the new factory has shown its advantages with regular power supply and sufficient human resources. The floorage of factory buildings has multiplied, allowing a new layout to increase efficiency and manufacture scale, which enables for further order execution; ii) the electroplating production line of Heyuan plant had commenced formal operations and was integrated with other work procedures, which allows better control over electroplating quality, and saves considerable subcontracting costs; iii) the copper strip plant in Shanghang County, Fujian Province had commenced formal operations so as to better secure the supply of raw materials and reduce the subcontracting costs for the copper processing business of the Group; iv) the deteriorating business environment for electronics components manufacturing sector has imposed no less pressure on our competitors. We believe small, poorly managed and less-equipped manufacturers will be eliminated. Meanwhile, integration of the industry is expected to accelerate and the Group's market share will continue to rise; and v) based on excellent product quality and well-established relationships, the Group has secured the world's leading manufacturers of electronic consumer products as customers, which guarantees a sufficient product demand. Moreover, the Group is striving to expand the other product markets for these manufacturers.

Regarding the property investment sector, the Group acquired four additional properties which were commercial shops located in Hong Kong during the year for longterm holding purpose, making a total of twelve properties in the portfolio including nine in Hong Kong and the other three in the PRC. The subsequent financial tsunami, however, caused substantial decrease in the market prices as at the end of the year, including the balance sheet date and consequently, the Group recorded a fair value loss of approximately HK$58 million on investment properties. However, the management was of the opinion that it was an exceptional economic situation and the Group's investment properties, which consisted primarily of commercial shops in Hong Kong, had relatively lower risk as compared to other investment instruments. The above losses were unrealized impairment on carrying amounts, while the value of investment properties and the rental yield are expected to pick up when the market takes a turn for the better.

In the securities investment sector, the Group's consistent policy is to invest excess capital in quality bonds and stocks on a long-term basis, thereby collecting stable interests and dividends. The bond portfolio is free from bonds relating to US subordinated mortgage loans, and all bonds issued by US debtors have been disposed of in the first half of 2008. The above securities investments, which were also affected by the financial tsunami, experienced drastic drop in their market prices as at the end of the year, including the balance sheet date and consequently, the Group had to record a loss on disposal of approximately HK$5.6 million on bond investments and a fair value loss of approximately HK$22 million on stock investments respectively; nevertheless, the Group had no investments in financial derivatives as at 31 December 2008. The management was of the opinion that the securities investments held by the Group for longterm investment purpose were quality securities with relatively lower risks. The above loss in stock investments was unrealized impairment on carrying amounts, while the stock prices are expected to rise steadily when the economy takes a turn for the better.

PROSPECTS

In conclusion of the above, the year of 2008 was a year full of hardships as the Group's electronics components manufacturing sector, properties investment sector and securities investment sector were affected by the financial tsunami to various extents.

In spite of the losses recorded by the Group for the year and the prediction of global economic adjustment in 2009, the management is optimistic about the operating conditions and believes that the current situation will not last for long. The Group has sufficient cash reserve and its customer base comprises a majority of the internationally renowned brands. We will seek to lay a solid foundation for the future through expanded customer and product coverage. At the same time, we will adhere to sound investment strategies in identifying low-risk assets, such as quality properties, for investment so as to reap reasonable return, and will exercise caution in considering new investment projects.

In the long run, we are highly optimistic to the future and believe that our various sectors and investments will surely be able to generate considerable and stable income again along with economic recovery.

FINAL DIVIDEND

The Board does not recommend the payment of a final dividend for the financial year ended 31 December 2008.

APPRECIATION

On behalf of the Board, I would like to take this opportunity to thank all our beloved shareholders, respectable customers, dedicated vendors and professional bankers for their support over the year and look forward to a closer cooperation in coming years.

I would also like to personally thank all management and staff for their hard work and commitment to the Group and cheer them as we tackle future challenges successfully.

Mr. Chow Tak Hung
Chairman

Hong Kong, 16 April 2009