Viva Goods : Announces 2023 Interim Results

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【For Immediate Release】

21 August 2023

Viva Goods Company Limited

（Stock code：0933.HK）

Viva Goods Announces Interim Results of 2023

HKD 000'		For the Six Months ended 30 June			Change
			1H2023		1H2022
Revenue	5,444,300	755,200		+620.9%
-	Multi-Brand Apparel and Footwear	5,179,200	492,300		+952.0%
-	Sports Experience	265,000	262,900		+0.8%
Gross profit	2,491,000	251,400		+890.7%
Profit/(loss) attributable to equity holders	131,900	(31,700)			Turnaround
Gross profit margin	45.8%	33.3%			+12.5 p.p
Net profit margin	2.4%	-			Turnaround
Basic earnings/(loss) per share (HK cents)	1.16	(0.28)			Turnaround

（Hong Kong - 21 August 2023）Viva Goods Company Limited （"Viva Goods" or the "Company"） and its subsidiaries (the "Group") (stock code: 933.HK）, is pleased to announce its results for the six months ended 30 June 2023 (the "Period"). During the Period, the European and American markets, where the Group's brands are mainly operated in, faced challenges amidst depressing consumer demand due to the Federal Reserve's interest rate hike and the slowing down of the post- pandemic recovery. In the face of complex and volatile macro-environment, the Group is committed to optimize its operation and development strategies, the "multi-brand apparel and footwear business" recorded a year-on-year growth in revenue compared to the same period last year. In particular, the Group's overall revenue increased significantly by 620.9% to approximately HK$5.44 billion as compared to the same period last year due to the merger of the renowned footwear brand, Clarks. In addition, the Group turned around to profit for the Period due to the cessation of adoption of the

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provision contained in HKAS 28 after the transfer of listing, the consolidation of Clarks' profits and the reduced losses from other consumer brands.

Geographical expansion of Multi-Brand Apparel and Footwear Business with brand image rebuilding and innovative product offerings

In January 2023, the Group completed the acquisition of Clarks, a renowned footwear brand, with an effective equity interest of 51%, making it the largest shareholder of Clarks. For the Period, Clarks' performance met expectation. It recorded revenue of HK$4.67 billion, accounting for 85.8% of the Group's total revenue. In the second half of the year, where it is the consumption peak season with the "Back to School" and the Christmas festival, it shall be more crucial for Clarks' full year results. The Group will optimize its retail channels in the UK market and accelerate the expansion of its wholesale business in Europe and the US to increase market penetration; increase the contribution of e-commercebusiness by renovating its online platform; and improve profit margins by adjusting its product structure. In Greater China, the Group will make full use of its resources to develop and design products that are more suitable for the China market, and optimize its distribution channels to approach the target consumers, so as to enhance the market penetration and brand awareness of Clarks in Greater China.

Bossini, a renowned leisure brand in Greater China, is also one of the key players, and is now focusing on rebuilding its brand image with the new brand "bossini. X". Through its sponsorship of the China Cycling Team, the brand has developed mass market accepted products that incorporate the elements of cycling into the design of leisure lifestyle. During the period, the Group continued to optimize the sales channels of the "bossini. X" brand. In Hong Kong and Macau, the Group sold bossini.X products in selected Bossini shops to increase its exposure and achieve gradual brand integration. In addition, in the Mainland China market, we closed down some of the inefficient shops with a view to enhancing operational efficiency and gradually reducing losses.

Steady Growth of Sports Experience Business

During the Period, the Group's sports experience business maintained a steady and orderly performance. During the Period, the revenue increased slightly compared with the same period last year, and the profit returned to a normal level. In April, the All-StarIce-skating Club at Beijing Beitou Shopping Park put into operation. The Group operated a total of 9 sports parks and 12 ice- skating rinks nationwide during the Period.

This June, the Group transferred from GEM to the Main Board of the Hong Kong Stock Exchange. The transfer of listing marks the Group's embarkation on a broader capital stage and lays the

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foundation for sustainable development towards its goal of becoming a top international consumer brands operating company. Along with the slow recovery of the economy in the post pandemic era, the Group has maintained a prudent approach a and adjusted its international business layout in a timely manner with an eye on the global economic and consumer environment. At present, the Group's major source of profits continues to be its share of profits from associates. In the future, as the results of the Group's consumer brands rebranding become apparent, it is hoped that the consumer goods business can gradually become the Group's main source of profits, helping the Group to achieve its goal.

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About Viva Goods Company Limited

• Viva Goods is a consumer brands operating company, which 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 casual wear brands in Greater China, the affordable luxury fashion brand LNG, and Amedeo Testoni, an Italian luxury leatherwear brand. The Group's business covers markets such as Europe, the United States, the Greater China, Japan, Korea and 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 9 sports parks and 12 ice- skating rinks across China.

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

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