Red Star Macalline : ANNOUNCEMENT ON THE OPERATING STATISTICS FOR THE FIRST HALF OF 2020

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.

Red Star Macalline Group Corporation Ltd.

紅星美凱龍家居集團股份有限公司

(A sino-foreign joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1528)

ANNOUNCEMENT ON THE OPERATING

STATISTICS FOR THE FIRST HALF OF 2020

This announcement is made by Red Star Macalline Group Corporation Ltd. (the "Company") pursuant to Rules 13.09 and 13.10B 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 (Cap. 571 of the Laws of Hong Kong) and the Rules Governing the Listing of Stocks on Shanghai Stock Exchange.

The board of directors and all directors of the Company confirm that there are no false representations, misleading statements, or material omissions in this announcement, and they shall individually and collectively accept full responsibility for the truthfulness, accuracy and completeness of contents herein.

In accordance with the relevant requirements under the Guidelines No. 5 on Industry Information Disclosure of Listed Companies - Retail 《( 上市公司行業信息披露指引第五號－零售》) and the

Notice in relation to the Endeavour on Disclosure of the 2020 Half Yearly Report by the Listed Companies 《( 關於做好上市公司2020年半年度報告披露工作的通知》) issued by the Shanghai

Stock Exchange, the Company hereby discloses its principal operating statistics for the first half of

2020 (the "Reporting Period") as follows:

As of 30 June 2020, the Company operated 87 Portfolio Shopping Malls, 247 Managed Shopping Malls, and 12 home furnishing malls through strategic cooperation. In addition, the Company opened 50 franchised home improvement material projects by way of franchising, which includes a total of 430 home improvement material stores/industry streets.

1. CHANGES IN MALLS FOR THE FIRST HALF OF 2020
   During the Reporting Period, there were one new Portfolio Shopping Mall of the Company, situated in Kunshan, Jiangsu Province, one closed Portfolio Shopping Mall, situated in Shenyang, Liaoning Province; one new Managed Shopping Mall, situated in Changde, Hunan Province, and four closed Managed Shopping Malls, situated in Hegang, Heilongjiang Province, Shouguang, Shandong Province, Dalian, Liaoning Province and Changsha, Hunan Province.

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1. Changes in Malls During the Reporting Period

Table 1-1 Changes in Owned

Portfolio Shopping Malls during the Reporting Period

Unit: m2

		Malls as at the						Malls Transferred					Malls Transferred
		Beginning of						from Other					into Other	Malls as at the End
		the Period	New Malls	Business Mode	Closed Malls	Business Mode	of the Period
Mode of		No. of	Operating	No. of	Operating	No. of	Operating	No. of	Operating	No. of	Operating	No. of	Operating
Operation	Location	Malls		Area	Malls		Area	Malls		Area	Malls		Area	Malls		Area	Malls		Area
Owned	Beijing	3		226,567																		3	226,587
Owned	Shanghai	7	903,540																		7	904,582
Owned	Tianjin	4	455,563																		4	456,490
Owned	Chongqing	3	249,735																		3	250,477
Owned	Northeast China	10	1,044,303																		10	1,028,967
Owned	North China (excluding	2		168,615																		2	168,830
	Beijing and Tianjin)
Owned	East China (excluding	12		1,471,404	1	33,154														13	1,499,618
	Shanghai)
Owned	Central China	4		501,415																		4	501,289
Owned	South China	2		116,201																		2	116,201
Owned	West China (excluding	6	558,637																		6	557,398
	Chongqing)
Total:		53		5,695,981	1	33,154														54	5,710,438

Note 1: The discrepancies between total and sums of amounts in the table above are due to rounding.

Note 2: Portfolio Shopping Malls stated in this announcement include Owned Portfolio Shopping Malls, JV/ Associate Portfolio Shopping Malls and Leased Portfolio Shopping Malls.

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Table 1-2 Changes in JV/Associate

Portfolio Shopping Malls during the Reporting Period

Unit: m2

Malls as at the

Malls Transferred

Malls Transferred

Beginning of

from Other

into Other

Malls as at the End

the Period

New Malls

Business Mode

Closed Malls

Business Mode

of the Period

Mode of

No. of

Operating

No. of

Operating

No. of

Operating

No. of

Operating

No. of

Operating

No. of

Operating

Operation

Location

Malls

Area

Malls

Area

Malls

Area

Malls

Area

Malls

Area

Malls

Area

JV/Associate

Beijing

JV/Associate

Shanghai

JV/Associate

Tianjin

JV/Associate

Chongqing

JV/Associate

Northeast China

JV/Associate

North China (excluding

Beijing and Tianjin)

JV/Associate

East China (excluding

3

247,700

3

247,844

Shanghai)

JV/Associate

Central China

JV/Associate

South China

1

15,817

1

15,800

JV/Associate

West China (excluding

1

89,215

1

89,215

Chongqing)

Total:

5

352,732

5

352,859

Note 1: The discrepancies between total and sums of amounts in the table above are due to rounding.

Table 1-3 Changes in Leased

Portfolio Shopping Malls during the Reporting Period

Unit: m2

Malls as at the

Malls Transferred

Malls Transferred

Beginning of

from Other

into Other

Malls as at the End

the Period

New Malls

Business Mode

Closed Malls

Business Mode

of the Period

Mode of

No. of

Operating

No. of

Operating

No. of

Operating

No. of

Operating

No. of

Operating

No. of

Operating

Operation

Location

Malls

Area

Malls

Area

Malls

Area

Malls

Area

Malls

Area

Malls

Area

Leased

Beijing

1

115,285

1

117,369

Leased

Shanghai

Leased

Tianjin

Leased

Chongqing

2

133,586

2

133,241

Leased

Northeast China

1

102,785

1

102,785

Leased

North China (excluding

8

396,305

8

441,023

Beijing and Tianjin)

Leased

East China (excluding

10

492,236

10

494,659

Shanghai)

Leased

Central China

4

307,468

4

307,468

Leased

South China

2

103,264

2

103,322

Leased

West China (excluding

1

37,201

1

37,623

Chongqing)

Total:

29

1,688,131

1

102,785

28

1,634,705

Note 1:

The discrepancies between total and sums of amounts in the table above are due to rounding.

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Table 1-4 Changes in Managed

Shopping Malls during the Reporting Period

Unit: m2

		Malls as at the						Malls Transferred						Malls Transferred
		Beginning of						from Other						into Other	Malls as at the End
		the Period	New Malls	Business Mode	Closed Malls	Business Mode	of the Period
Mode of		No. of	Operating	No. of	Operating	No. of	Operating	No. of	Operating	No. of	Operating	No. of	Operating
Operation	Location	Malls		Area	Malls		Area	Malls		Area	Malls		Area	Malls		Area	Malls		Area
Managed	Beijing	1	112,757																					1	112,736
Managed	Shanghai
Managed	Tianjin	3	175,490																					3	178,155
Managed	Chongqing	6	205,859																					6	206,163
Managed	Northeast China	16	772,922											2	56,173						14	702,328
Managed	North China (excluding	29	1,604,884																1	28,184	28	1,597,808
	Beijing and Tianjin)
Managed	East China (excluding	105	6,030,080											1		37,278						104	6,007,746
	Shanghai)
Managed	Central China	35	1,681,350	1	38,402							1	9,498						35	1,720,545
Managed	South China	12	616,266																					12	622,101
Managed	West China (excluding	43	2,050,498						1	29,889											44	2,108,226
	Chongqing)
Total:		250	13,250,106	1	38,402		1		29,889	4	102,949	1	28,184	247	13,255,808

Note 1: The discrepancies between total and sums of amounts in the table above are due to rounding.

Note 2: Malls Transferred into Other Business Mode: one mall was changed from a Managed Shopping Mall to a Leased Portfolio Shopping Mall.

Malls Transferred from Other Business Mode: one mall was changed from a franchised home improvement material project to a Managed Shopping Mall.

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(II) Details of Changes in Malls during the Reporting Period

Table 1-5Newly-added Malls during the Reporting Period

					Unit: m2
				Way of	Construction Cost
Name	Address	Operating Area	Opening Date	Contracting	(RMB)
Kunshan Qianjin Road	No.505 Qianjin West Road,	33,154	20 June 2020	Acquisition	313,457,252.62
(昆山前進路)	Kunshan City, Suzhou City
	(蘇州市昆山市前進西路505號)
					Contract Period
					(Applicable to
					Leased and
				Way of	Managed
Name	Address	Operating Area	Opening Date	Contracting	Business Mode)
Changde Dongxing	No.3980 Changde Avenue, Zhugentan	38,402	15 June 2020	Contracted	10 years since
(常德東星)	Community, Nanping Street,			management	the opening
	Wuling District, Changde City
	(常德市武陵區南坪街道
	竹根潭社區常德大道3980號)

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	Table 1-6 Mall Closures during the Reporting Period
							Unit: m2
					Contract
					Period
					(Applicable
					to Leased and
					Managed
		Operating	Opening	Way of	Business	Reason for	Time of
Name	Address	Area	Date	Contracting	Mode)	Closure	Closure

Hegang Gongnong	Red Star Macalline,
(鶴崗工農)	Xijiefang Road, Gongnong
	District, Hegang City,
	Heilongjiang Province
	(黑龍江省鶴崗市工農區
	西解放路紅星美凱龍)
Shenyang Dadong	No.22, Pangjiang Street,
(瀋陽大東)	Dadong District, Shenyang
	City, Liaoning Province
	(遼寧省瀋陽市大東區滂江
	街22號)
Shouguang Caidu	Opposite New Bus
(壽光菜都)	Station, Wensheng Street,
	Shouguang City,
	Shandong Province
	(山東省壽光市文聖街
	新汽車站對面)
Dalian Jinzhou	No.42 Yongle Jinting,
(大連金州)	Guangming Street, Jinzhou
	District, Dalian City,
	Liaoning Province
	(遼寧省大連市金州區
Changsha Yong'an	光明街道永樂金庭42號)
3F, Building A6, Boda
(長沙永安)	Central Plaza, Yongming
	Road, Liuyang High-
	tech Development Zone,
	Changsha City, Hunan
	Province (湖南省長沙市瀏
	陽高新技術開發區永明路
	博大中央廣場A6棟三樓)

25,400 25 October	Contracted	15 years since	Closure by mutual	March 2020
2010	management	the opening	agreement between both
			parties

102,785	30 September	Leased	Due to expire	Due to strategy	May 2020
	2010		on 31 May	adjustment, the Company
			2022	chose to close the
				mall after careful
				consideration
37,278	6 June	Contracted	10 years since	The partner was bankrupt	June 2020
	2014	management	the opening	and was unable to
				continue to have the legal
				ownership and the right
				of management of the
				mall properties
30,773	31 August	Contracted	10 years since	The partner defaulted,	June 2020
	2017	management	the opening	and we terminated the
				contract by sending a
				letter and withdrew from
				the mall
9,498	29 December	Contracted	10 years since	Closure by mutual	June 2020
	2017	management	the opening	agreement between both
				parties

1. MALLS THAT ARE IN OPENING PREPARATION AS OF THE END OF THE FIRST HALF OF 2020
   As of 30 June 2020, the Company has 33 pipeline Portfolio Shopping Malls (of which 25 are Owned Portfolio Shopping Malls and 8 are Leased Portfolio Shopping Malls), and the planned construction area amounted to approximately 4.31 million sq.m. (subject to the final construction areas as approved in the government permit documents). Among the pipeline Managed Shopping Malls, we have obtained land use rights/land parcels for 355 managed contractual projects.

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1. REVENUE AND GROSS PROFIT MARGIN OF PORTFOLIO SHOPPING MALLS FOR THE FIRST HALF OF 2020
   During the Reporting Period, the Portfolio Shopping Malls opened by the Company recorded revenue of RMB3,150,607,883.08, representing a decrease of 25.0% as compared with the same period of last year; the gross profit margin was 76.5%, representing a decrease of 2.6 percentage points as compared with the same period of 2019.

Table 3-1 Revenue and Gross Profit Margin of

Portfolio Shopping Malls Classified by Operating Mode

							Unit: RMB
							Gross Profit
			Change as			Margin Change as
			Compared			Compared to
			to the Same	Gross Profit		the Same Period of
Mode of Operation	Revenue	Period	Margin		Last Year
			(%)		(%)		(Percentage Point)
Owned Portfolio Shopping Malls	2,563,312,953.75		-23.0%	84.9%		a decrease of
							1.4 percentage points
Leased Portfolio Shopping Malls	455,975,989.05		-26.8%	33.9%		a decrease of
							11.1 percentage points Note 2
JV/Associate Portfolio Shopping Malls	131,318,940.28		-47.2%	60.9%		a decrease of
							7.0 percentage points
Total:							a decrease of
	3,150,607,883.08		-25.0%	76.5%		2.6 percentage points

Note 1: Malls listed above are Portfolio Shopping Malls opened as at the end of each period (including JV/ Associate Portfolio Shopping Malls).

Note 2: During the epidemic, the shopping malls have implemented rent-free policy for their tenants, resulting in a period-on-period decrease in the gross profit margin of Leased Portfolio Shopping Malls.

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Table 3-2 Revenue and Gross Profit Margin of

Portfolio Shopping Malls Classified by Location

							Unit: RMB
							Gross Profit
							Margin Change as
			Change as			Compared to
			Compared to the	Gross Profit		the Same Period
Location	Revenue		Same Period	Margin		of Last Year
		(%)		(%)		(Percentage Point)
Beijing	308,263,002.61	-34.4%	72.9%		a decrease of
							3.1 percentage points
Shanghai	704,450,352.88	-19.8%	89.6%		a decrease of
							1.6 percentage points
Tianjin	75,135,654.96	-34.9%	72.2%		a decrease of
							7.0 percentage points
Chongqing	208,297,099.88	-28.7%	79.0%		a decrease of
							2.1 percentage points
Northeast China	296,684,312.56	-31.5%	83.3%		an increase of
							2.0 percentage points
East China	855,482,948.93	-16.1%	73.6%		a decrease of
(excluding Shanghai)							0.9 percentage points
North China	127,879,574.26	-13.2%	43.4%		a decrease of
(excluding Beijing and							12.7 percentage points Note 2
Tianjin)
South China	76,638,787.36	-53.6%	51.2%		a decrease of
							13.8 percentage points Note 3
Central China	246,300,651.02	-36.6%	68.3%		a decrease of
							8.9 percentage points
West China	251,475,498.62	-13.1%	77.4%		a decrease of
(excluding Chongqing)							3.1 percentage points
Total:							a decrease of
	3,150,607,883.08	-25.0%	76.5%		2.6 percentage points

Note 1: Malls listed above are Portfolio Shopping Malls opened as at the end of each period (including JV/ Associate Portfolio Shopping Malls).

Note 2: The shopping malls in North China are mainly Leased Portfolio Shopping Malls, and the gross profit margin in North China declined period-on-period due to the impact of the rent-free policy.

Note 3: The gross profit margin in South China declined period-on-period due to the closure of the Xiangmihu Shopping Mall.

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The operating information of this announcement is unaudited and provided to investors to understand the operation of the Company only. The Company advises investors to exercise caution when using such information.

This announcement is published simultaneously in Chinese and English. In the event of any inconsistency between Chinese and English versions, the Chinese version shall prevail.

Notice is hereby given.

By Order of the Board

Red Star Macalline Group Corporation Ltd.

GUO Binghe

Vice Chairman

Shanghai, the PRC

27 August 2020

As at the date of this announcement, the executive Directors of the Company are CHE Jianxing, GUO Binghe, CHE Jianfang and JIANG Xiaozhong; the non-executive Directors are CHEN Shuhong, XU Guofeng, XU Hong and JING Jie; and the independent non-executive Directors are QIAN Shizheng, LEE Kwan Hung, Eddie, WANG Xiao and ZHAO Chongyi.

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