Lifestyle International : Announcements and Notices - Profit Warning

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LIFESTYLE INTERNATIONAL HOLDINGS LIMITED 利福國際集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1212)

PROFIT WARNING

This announcement is made by Lifestyle International Holdings Limited (the "Company", together with its subsidiaries collectively the "Group") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, the Laws of Hong Kong).

The board of directors (the "Board") of the Company wishes to inform shareholders of the Company (the "Shareholders") and potential investors that based on the management's preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018 currently available, the profit attributable to owners of the Company for the period is expected to decrease by approximately 48% as compared to that for the corresponding period in the previous financial year. The expected decrease in the profit attributable to owners of the Company is primarily due to:

• (1) absence during the current period of the one-off gain of HK$421 million on disposal of the Group's 59.56% interest in a subsidiary recorded in the same period last year;

• (2) a significant drop in investment income on the Group's financial assets and bank deposits when compared to the same period last year. The volatile financial market conditions during the period has resulted in an unrealised loss on fair value of the Group's financial assets and as a result, the Group's overall investment income for the period is expected to turn negative from a positive of approximately HK$328 million recorded in the same period last year; and

• (3) a decrease in fair value change on the Group's investment properties from the approximately HK$351.5 million recorded in the same period last year.

Notwithstanding absence of the one-off gain and the negative impact of the factors mentioned above to the profit attributable to owners of the Company for the six months ended 30 June 2018, the Group's operating profit however has benefited from the robust retailing environment in Hong Kong during the period. The Board is pleased to report that based on the unaudited consolidated management accounts and information currently available, the Group's retail sales for the six months ended 30 June 2018 is expected to record a year on year same store sales growth of approximately 24%. The strong sales performance is believed to be attributable to the strong local consumption sentiment and the visible increase in tourist arrivals during the period, as well as the Group's solid leadership and well-tailored product and brand portfolio.

The Company is still in the process of finalising its consolidated interim results of the Group for the six months ended 30 June 2018 and the information contained in this announcement represents only a preliminary assessment by the management of the Company based on the information currently available and is not based on any figures or information which have been audited or reviewed by the Company's auditors or the audit committee. The actual results of the Group for the six months ended 30 June 2018 may be different from the disclosure herein.

Details of the Group's unaudited results for the six months ended 30 June 2018 are expected to be announced on 13 August 2018. Shareholders and potential investors are advised to read the results announcement of the Company when it is published.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Lifestyle International Holdings Limited

Poon Fuk Chuen

Company Secretary

Hong Kong, 31 July 2018

As at the date of this announcement, the Board comprises Mr. Lau Kam Sen and Ms. Lau Kam Shim as executive directors; Mr. Lau Luen Hung, Thomas, Mr. Doo Wai Hoi, William and Ms. Lau Yuk Wai, Amy as non-executive directors; and Mr. Lam Siu Lun, Simon, The Hon. Shek Lai Him, Abraham, Mr. Hui Chiu Chung and Mr. Ip Yuk Keung as independent non-executive directors.