Viva China : Announces 2022 Interim Results

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【For Immediate Release】

15 August 2022

非凡中國控股有限公司

Viva China Holdings Limited

(Stock code：8032.HK)

Viva China Announces Interim Results for the 6 Months Ended 30 June 2022

Revenue Grew by 7.4% to HK$750 million

Acquisition of Clarks completed

Expanding multi-brand apparel and footwear business

HK$'000		For the 6 months ended 30 June			Change
		2022		2021
Revenue	748,833	695,373	+7.7%
- Multi-brand apparel and footwear	485,915	425,468		+14.2%
- Sports experience	262,918	269,905	-2.6%
Gross profit	245,019	277,557	-12.3%
Profit attributable to equity holders	(31,710)	3,378,772		Record loss
Gross profit margin	32.7%	39.9%		-7.2 p.p
Net profit margin		negative	485.9%		Record loss
Basic earnings/loss per share	(0.28)	29.96		Record loss
(HK cents)

(Hong Kong - 15 August 2022) Viva China Holdings Ltd. ("Viva China" or the "Company", together with its subsidiaries, collectively the "Group"; stock code: 8032.HK), announced its results for the six months ended 30 June 2022 (the "Period"). During the Period, the business environment became

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complicated and difficult due to the outbreaks of the COVID-19 mutated strains across China. The Group's multi-brand apparel and footwear business was affected by the epidemic containment policies in mainland China and Hong Kong, leading to a decrease in the Group's net profit. Nevertheless, the Group expanded its multi-brand apparel and footwear business through acquisitions, seized the online business opportunities arising from the epidemic to provide e- commerce and live streaming services for its brands. Driven by the multi-brand apparel and footwear segment, the Group's revenue for the first half of the year increased year-on-year by 7.7% to HK$750 million.

Expanded the multi-brand apparel and footwear business and formed an international business portfolio

Early this year, the Group completed the acquisition of the century-old Italian luxury leatherwear brand Amedeo Testoni. In early July, the Group also completed the acquisition of a near-two-century- old international footwear brand Clarks. The Group now holds 6 apparel and footwear brands. This segment was expanded to the overseas market through mergers and acquisitions to develop an international business landscape.

In addition, the Group has strategically expanded its brand portfolio by launching the new bossini.X brand, targeting at the fashion youth. During the Period, the Group continued to expand bossini.X in first- and second-tier cities of mainland China, and had opened over 80 stores so far. In early July, the first flagship store of bossini.X was opened in a high-end fashion commercial district in Hong Kong.

Driven by the Group's acquisitions, the organic growth of its LNG business, and the development of its e-commerce business, the segment's revenue for the first half of the year increased by 14.2% to HK$490 million.

Steady growth of the sports experience business with favorable government policies

During the Period, the Group added two new sports centers. To date, the Group operates and manages a total of 9 sports destinations and 11 ice skating rinks across China, promoting healthy living and sports awareness. Benefited from the popularity of winter sports as attributed to the Beijing Winter Olympics held in the beginning of the year, the Group's ice-skating rinks encountered a surge of customers in the first quarter. However, due to the outbreaks of COVID-19, some of the venues were closed and training courses were suspended temporarily. As a result, the sports experience segment recorded a slight decrease in revenue of 2.6% to HK$260 million. Despite this, the sports industry is still one of the main development fields in the PRC. With promotion of national fitness

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through the PRC government's implementation of the 14th Five-Year Plan and the revision of the Sports Law of the People's Republic of China, it is believed that the healthy and long-term development of the sports industry will be promoted.

Mr. Li Ning, the Chairman, Chief Executive Officer, and Executive Director of the Group said: "Viva China is committed to building a competitive multi-brandapparel and footwear business. Over the past few years, the Group has rapidly increased its business scale through M&A. The multi-brandapparel and footwear business is now much more sizable. Going forward, the Group will focus on optimizing the operations of the existing brands. In the second half of the year, the international environment remains complicated and volatile, and with the epidemic at flux, economic recovery takes time. We shall diligently monitor changes in the business environment and consumption demand, steadily develop our businesses with enhancing operational efficiency at the forefront. In the meantime, the Group will also continue to explore suitable acquisition opportunities to expand the business scale and bring greater returns to our shareholders."

-The end-

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About Viva China Holdings Limited

Viva China is an apparel and footwear brand operator. Its principal business includes the operation of Multi-brand Apparel and Footwear and Sports Experience business. Apart from operating multiple sports destinations and ice-skating rinks network, the Group also involves in the management, service providing, and the investment of the E-Sports Team. At present, the company has its own luxury brand LNG, well-known brands in Hong Kong and China Mainland bossini and bossini.X, Italian luxury leatherwear brand Amedeo Testoni, international footwear brand Clarks, and its own lingerie brand Neizhuang.

This press release is issued by DLK Advisory Limited on behalf of Viva China Holdings Limited.

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