Viva China : Announces 2022 Third Quarterly Results

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【For Immediate Release】

14 November 2022

非凡中國控股有限公司

Viva China Holdings Limited

(Stock code：8032.HK)

Viva China Announces Quarterly Results for the 9 Months Ended 30 September 2022

Revenue for the First Nine Months in 2022 Grew by 320.2%

to HK$4.1 billion

	HK$'000		For the 9 months ended 30 September			Change
			2022			2021
	Revenue	4,118,500	980,100	+320.2%
	- Multi-brand apparel and footwear	3,731,500	607,700	+514.0%
	- Sports experience	387,000	372,400	+3.9%
	Gross profit	1,866,900	391,100	+377.3%
	Profit attributable to equity holders*	1,017,900	3,456,600	-70.6%
	Gross profit margin	45.3%	39.9%		+5.4 p.p
	Net profit margin	30.5%	353.2%		-322.7 p.p
	Basic earnings/loss per share	8.96	30.62	-70.6%
	(HK cents)

*The higher profit attributable to equity holders in the same period of 2021 was mainly due to "the gain on disposal of partial interest in an associate" and "the gain on disposal of a subsidiary".

（Hong Kong - 14 November 2022）Viva China Holdings Limited ("Viva China" or the "Company", together with its subsidiaries, collectively the "Group"; stock code: 8032.HK), announced its results

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for the nine months ended 30 September 2022 (the "Period"). During the Period, geopolitical tensions remained prominent, while the impact of the epidemic and economy inflation added uncertainties to the overall business environment. In the face of the severe market environment, the Group has moved forward prudently with a steady and pragmatic attitude. It vigorously expanded the internationalized multi-brand apparel and footwear business, while steadily developed the sports experience segment. Driven by the growing multi-brand apparel and footwear segment, the Group's revenue for the first nine months of the year increased by 320.2% year-on-year to HK$4.1 billion.

Expanded global footprint with fast-growingmulti-brand apparel and footwear business

In the third quarter of 2022, the Group completed the acquisition of Clarks, a well-known footwear brand with a history of almost two centuries, which set an important milestone for business development. The results of Clarks have also begun to be consolidated into the Group, representing a big step towards the goal of building an internationalized multi-brand apparel and footwear business landscape. Due to the recovery of consumption after the epidemic, Clarks's business grew in the European and US markets, and its business has returned to be profitable. The revenue from the consolidation of Clarks led to a significant increase in the overall revenue of the Group, and its profits during the quarter of HK$409 million also made up for the losses in other apparel and footwear businesses of the Group.

Meanwhile, LNG, the Group's self-owned fashion and affordable luxury brand, as a high-end fashion apparels brand featuring multidimensional culture, has developed an offline sales network of nearly 30 stores in the fashion commercial districts of first- and second-tier cities. It also achieved steady revenue growth. On the other hand, Bossini, the well-known lifestyle apparel brand, has developed "bossini.X", a new brand positioned as a street fashion brand. This brand continued its expansion in the first- and second-tier cities in Mainland China and had opened over 90 stores so far, with its recognition increasing by the day. Moreover, Amedeo Testoni, the Italian luxury leatherware brand that was acquired earlier this year, continued to explore its brand strategy and positioning, and the Group will allocate resources to explore new product categories for improving the overall competitiveness of the brand.

The multi-brand apparel and footwear business has a more diversified brand portfolio with rapid growth of 514.0% to HK$3.73 billion, which has laid the foundation for the Group's sustainable development.

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Continued recovery of sports experience business following the favorable policies

In September, the General Administration of Sport of China issued the "Guidelines for the Construction of National Fitness Information Service Platform (Trial)", which clearly proposes to implement the goal of building China into a leading sporting nation and further promote the systematic development of national fitness and the industry. During the Period, some of the Group's sports parks and ice-skating rinks are still suspended during the period, but the foot traffic and revenue are increased as compared to the second quarter of the year. At the beginning of the year, with two sports parks newly opened in Hangzhou and Tongxiang, the Group witnessed the revenue increased by 3.9% to HK$390 million with a turnaround from loss as compared to the corresponding period in prior year. Benefitted from the Beijing Winter Olympics held in the early of the year, winter sports received wide popularity from the public. The Group will consider to further expand the scale of its ice-skating rink business in the future.

Mr. Li Ning, the Chairman, Chief Executive Officer, and Executive Director of the Group said: "Viva China has moved forward prudently with a steady and pragmatic attitude, vigorously expanded the internationalized multi-brand apparel and footwear business, and steadily develop the sports experience segment. The multi-brand apparel and footwear business is now much more sizable. Going forward, the Group will focus on optimizing the operations of the existing brands. The international situation will be complex and volatile in the future, and it will take time for the economy to recover from the recurring epidemic. We will diligently monitor changes in the business environment and consumption demand, steadily develop our businesses and enhance operational efficiency. At the same time, the Group will pay close attention to the potential brands in the market and actively expand its business landscape, with a view to bringing better returns to the shareholders."

-The end-

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About Viva China Holdings Limited

Viva China is a multi-brand apparel and footwear 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 Mainland China Bossini and bossini.X, Italian luxury leatherwear brand Amedeo Testoni, international footwear brand Clarks, and loungewear brand Neizhuang.

This press release is issued by DLK Advisory Limited on behalf of Viva China Holdings Limited. For enquiries, please contact,

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Michelle Shi ([e-mail])

Karen Wong ([e-mail])

Fiona Luo ([e-mail])

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