Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

GIORDANO INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 709)

UNAUDITED OPERATIONS UPDATE FOR

THE THREE MONTHS ENDED SEPTEMBER 30, 2019

The board of directors (the "Board") of Giordano International Limited (the "Company") presents the unaudited operations update of the Company and its subsidiaries (the "Group") for the three months ended September 30, 2019. This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

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

SUMMARY OF OPERATIONS UPDATE

Table 1: Overview of Group sales

Three months ended Sep 30

Nine months ended Sep 30

(In HK$ million)

2019

2018

2019

2018

The rest of Asia Pacific

349

355

1,156

1,193

Mainland China

208

251

737

932

Hong Kong and Macau

169

226

590

703

The Middle East

153

134

497

469

Taiwan

129

142

430

498

Wholesale sales to overseas franchisees

67

68

207

241

Group sales1

1,075

1,176

3,617

4,036

Global brand sales2

1,319

1,434

4,472

4,842

Group comparable store sales ("CSS") growth3

(10.3%)

(2.8%)

(9.1%)

2.9%

Inventories at period end

492

525

Table 2: Group sales by channel

Three months ended Sep 30

Nine months ended Sep 30

(In HK$ million)

2019

2018

2019

2018

Physical stores

881

959

2,983

3,267

E‐business

44

50

176

213

Retail sales

925

1,009

3,159

3,480

Wholesale sales to franchisees

150

167

458

556

Group sales

1,075

1,176

3,617

4,036

1

During the quarter, Group sales decreased by 8.6%, or 7.1% if translated at constant exchange rate, while group CSS was down by 10.3%. Our Middle East markets registered strong growth while Mainland China, Hong Kong and Macau recorded notably poor sales.

Table 3: Store portfolio

Store numbers

at Sep 30

2019

2018

Retail and Distribution

Mainland China

Franchised stores

631

627

Directly-operated stores

276

305

Hong Kong and Macau

75

75

Taiwan

197

199

The rest of Asia Pacific

602

595

The Middle East

Franchised stores

31

39

Directly-operated stores

145

145

Overseas franchisees

423

422

Total

2,380

2,407

Table 4: System inventories

At

Sep 30

Dec 31

Sep 30

(In HK$ million)

2019

2018

2018

Inventories held by the Group

492

552

525

Inventories held by 48.5% South Korea joint venture

217

200

197

Inventories held by franchisees in Mainland China

91

94

90

Finished goods at suppliers (not yet shipped)

31

27

31

Total system inventories

831

873

843

By Order of the Board

LAU Kwok Kuen, Peter

Chairman and Chief Executive

Hong Kong, October 18, 2019

As at the date of this announcement, the Board comprises three executive directors; namely, Dr. LAU Kwok Kuen, Peter (Chairman and Chief Executive), Dr. CHAN Ka Wai and Mr. Mark Alan LOYND; two non-executive directors; namely, Dr. CHENG Chi Kong and Mr. CHAN Sai Cheong; and four independent non-executive directors; namely, Dr. Barry John BUTTIFANT, Mr. KWONG Ki Chi, Professor WONG Yuk (alias, HUANG Xu) and Dr. Alison Elizabeth LLOYD.

1

2

3

Group sales refer to consolidated sales and include retail sales from directly-operated stores and wholesale sales to all overseas/non-consolidated franchisees.

Global brand sales are at 2019 exchange rates, and are greater than Group sales to include the total of Giordano retail sales, in directly-operated stores, franchised stores and stores operated by a joint venture.

Group CSS are total Giordano brand sales of consolidated subsidiaries, at constant exchange rates, from existing directly-operated stores and franchised stores that have been fully operating in the same prior period.

2

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Giordano International Ltd. published this content on 18 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2019 04:28:06 UTC