Viva Goods : Announces Annual Results of 2023

DLK Advisory

金通策略

【For Immediate Release】

21 March 2024

Viva Goods Company Limited

（Stock code：0933.HK）

Viva Goods Announces Annual Results of 2023

Revenue Surged by 62.6% to HK$11.2 billion

Distribute final dividend of HK$0.008 per share

HKD 000'		For the 12 Months ended December

20232022

Change

Revenue	11,219,400	6,900,400	+62.6%
-	Multi-Brand Apparel and Footwear	10,682,000	6,399,500	+66.9%
-	Sports Experience	537,400	500,800	+7.3%
Gross profit	5,130,300	3,160,600	+62.3%
Profit/(loss) attributable to equity holders	(119,000)	850,400	-
Gross profit margin	45.7%	45.8%	-0.1p.p.
Net profit margin	-	12.7%	-
Basic earnings/(loss) per share (HK cents)	(1.04)	7.48	-
Final dividend per share (HK cents)	0.8	-	-

（Hong Kong - 21 March 2024）Viva Goods Company Limited （"Viva Goods" or the "Company"） and its subsidiaries (the "Group") (stock code: 933.HK), announces its annual results for the 12 months ended 31 December 2023 (the "Year"). During the Year, surging inflation and interest rates in the major markets, in particular the UK and other countries in Europe, triggered a surge in living costs, leading to more cautious consumer behaviors. The retail industry experienced a downturn, with many brands facing excessive inventories. In times of difficult market environment, the Group proactively reduced costs and enhanced operational efficiency, thereby maintaining stable cash flow and sustainable growth across the business segments. Notably, the Group increased its effective shareholding in Clarks to 51% during the Year, resulting in a remarkable 62.6% year-on-year

金通策略有限公司	DLK Advisory Limited	1
Room 906, 9/F, Nan Fung Tower, 88 Connaught Road Central, Hong Kong
香港中環干諾道中 88 號南豐大廈 9 樓 906 室
Tel: [phone]	Fax: [phone] Website: www.dlkadvisory.com

DLK Advisory

金通策略

increase in revenue to approximately HK$11.22 billion. The Board recommends a final dividend of HK$0.008 per share.

Expanding Multi-brand Consumables Business

In January 2023, the Group increased the effective shareholding of Clarks to 51%, making it the largest shareholder of Clarks. Clarks is a renowned brand with a rich heritage spanning nearly two centuries and a global presence in approximately 80 countries and regions. Recognizing the immense growth potential in the Greater China, the Group implemented a 「China for China」 strategy with focus on developing and designing products tailored to Chinese consumers. The first batch of 「China for China」products was launched in 2023. In terms of channel expansion, the Group established several directly-operated stores in first-tier cities such as Beijing, Shanghai, Tokyo, and Osaka. These stores serve to showcase the Group's design concepts and fashion language to consumers in the Asia-Pacific region. In Europe and the US, Clarks has rebuilt its online shopping platforms to enhance the consumer experience and to implement marketing promotions and community interactions, so as to increase the online sales and the proportion of e-commerce revenue in the future. During the Year, Clarks encountered challenges stemming from high inflation and interest rates in the major markets, leading to a lower-than-expected revenue in the directly sales channels. There's a need for impairment on right-of-use assets and property, plant and equipment in some directly-operated stores. The restructuring also resulted in a one-off restructuring expenses. However, the Group anticipates a reduction of the brand's operating expenses, which will enhance operational efficiency and profitability of the brand in 2024.

Bossini is a renowned casual wear brand in Greater China and Southeast Asia, with a history of 40 years. During the Year, the Group has made adjustments to the products and channels of bossini.X, a new brand under Bossini. By sponsoring the China National Cycling Team and developing professional cycling sportswear, the brand introduced fashion designs that incorporate cycling culture. The brand will appeal to a wider range of young consumers with its sporty outerwear and light outdoor designs, combined with specialized sports technology fabrics. In addition, the Group has closed inefficient stores in the Mainland China market to improve operational efficiency. It also accelerated the deployment of channels suitable for the new positioning of products. The brand will cooperate with cycling clubs and sports enthusiasts in the future to strengthen the connection with its target customers and enrich the user experience. Following the lifting of Covid-19 border controls,

金通策略有限公司	DLK Advisory Limited	2
Room 906, 9/F, Nan Fung Tower, 88 Connaught Road Central, Hong Kong
香港中環干諾道中 88 號南豐大廈 9 樓 906 室
Tel: [phone]	Fax: [phone] Website: www.dlkadvisory.com

DLK Advisory

金通策略

there was an increase in tourist traffic in Hong Kong, resulting in boosted consumption and improved retail business. In 2023, the brand witnessed higher sales revenue compared to 2022, and the loss attributable to shareholders decreased.

Solid Growth of Sports Experience Business

During the Year, the Group's sports maintained steady growth, with an increase in revenue compared to 2022 and a slight profit recorded. The Group has successively established three more Li Ning Sports Centers, which were located in Jiangshan Zhejiang, Guangzhou and Ningbo, and opened two new ice skating rinks in Beijing. The ongoing efforts to promote fitness and health have contributed to regional sports development. In addition, our e-sports team LNG achieved its best result by successfully reached the top eight of the League of Legends World Championship, demonstrating a strong teamwork.

Prospects

The Group is committed to creating an elegant and enjoyable fashion experience that fulfilled people's aspirations and needs. We provide high-quality products and services, to promote healthy and leisurely lifestyles to enhance people's quality of life and sense of happiness. Currently, the Group's portfolio includes a series of well-known domestic and international brands with rich historical and cultural heritage. In the future, the Group will continue to respect the heritage of our brands. By bridging traditional and modern lifestyle elements, we aim to maximize the core values of our brands, meet the public's needs and expectations, hence becoming a leading international brand operator.

In the face of macroeconomic challenges, the Group will prudently allocate resources, implement reasonable cost control measures, and ensure a steady cash flow to mitigate the impact of market uncertainties, and sustain the development of our international consumer goods business. Additionally, the Group will always be attentive to potential mergers and acquisitions, enriching our portfolio of brands in a timely manner, guiding the public in their pursuit of elegant, enjoyable, healthy, and leisurely lifestyles.

- END -

金通策略有限公司	DLK Advisory Limited	3
Room 906, 9/F, Nan Fung Tower, 88 Connaught Road Central, Hong Kong
香港中環干諾道中 88 號南豐大廈 9 樓 906 室
Tel: [phone]	Fax: [phone] Website: www.dlkadvisory.com

DLK Advisory

金通策略

About Viva Goods Company Limited

Viva goods is a Hong Kong Main Board listed company, committed to becoming a leading international brand operator. It has a portfolio of renowned international apparel and footwear brands, including Clarks, a British footwear brand with nearly two hundred years of history, Bossini and bossini.X, the famous casual wear brands, LNG , the affordable luxury fashion brand, and TESTONI, a century-old Italian luxury leatherwear brand. The Group's business covers markets such as Europe, the United States, Greater China, Japan, South Korea, Southeast Asia, etc. Apart from the multi- brand apparel and footwear business, the Group also developed its sports experience business, which includes operating and managing a total of 12 sports parks and 13 ice skating rinks across China. In early September 2023, the Group was included in the Hang Seng Composite Index and the Hong Kong Stock Connect.

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

DLK Advisory 金通策略

Tel: [phone]

Fax: [phone]

金通策略有限公司	DLK Advisory Limited	4
Room 906, 9/F, Nan Fung Tower, 88 Connaught Road Central, Hong Kong
香港中環干諾道中 88 號南豐大廈 9 樓 906 室
Tel: [phone]	Fax: [phone] Website: www.dlkadvisory.com