Giordano International : SUSPENSION OF BUSINESS OF CERTAIN STORES IN MAINLAND CHINA

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GIORDANO INTERNATIONAL LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 709)

SUSPENSION OF BUSINESS OF

CERTAIN STORES IN MAINLAND CHINA

This announcement is made by Giordano International Limited (the "Company" and, together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Since the outbreak of the novel coronavirus (2019-nCoV) pneumonia epidemic (the "Epidemic") in January 2020, a number of provinces and municipalities in mainland China have activated level I - the highest-level response to major public health emergencies and adopted various strict measures to curb the spread of the Epidemic.

The Company has recently received notices from local governmental authorities, as well as management offices of various departmental stores and shopping malls in mainland China pursuant to which it was required to temporarily suspend business operations in certain cities up to and including February 13, 2020 in order to facilitate the prevention and control of the Epidemic and ensure the health and safety of the public. In accordance with the measures, and to ensure the health and safety of our customers and employees, the Group has temporarily suspended the operation of 28 Giordano stores situated in Hubei Province and 111 Giordano stores situated in other provinces in mainland China (excluding Hong Kong & Macau SARs) up to and including February 13, 2020. There are approximately 880 Giordano stores situated in mainland China, of which 260 of them are directly operated by the Company. The Group currently has approximately 1,470 Giordano stores situated outside mainland China.

The unaudited comparable store sales in mainland China, Hong Kong and Macau SARs during the Chinese New Year ("CNY") Period1 dropped approximately 57% and 61%, respectively, as compared with that of last year.

As at June 30, 2019, the Group had $1,026 million in cash and bank balances, net of bank loans. Such position has not materially changed as at the date of this announcement.

The sales in mainland China contributed towards approximately 20.4% of the Group sales on the unaudited operation update for the nine months ended September 30, 2019.

1 For the first ten days of 2020 CNY (between January 25 and February 3, 2020) as compared to that of the corresponding period last year (between February 5 and February 14, 2019).

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The Company will proactively prepare for the resumption of business activities of it stores after the expiration of the above-mentioned notices of suspension and as the situation regarding the Epidemic improves. Further announcement(s) in relation to such developments will be made by the Company as and when appropriate.

The information contained in this announcement is only based on the preliminary review of the management accounts of the Group and the information currently available to the Board subject to finalization and necessary adjustments, which have not been confirmed nor audited by the Company's auditor.

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

By Order of the Board

LAU Kwok Kuen, Peter

Chairman and Chief Executive

Hong Kong, February 10, 2020

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.

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