China Dongxiang Announces Operational Results for Q4 and Twelve Months of FY2022/23

Overall Retail Performance and Same-store-sales, Recovered Steadily in Q4 Both Recorded Mid-to-low Teens Growth

HONG KONG SAR - Media OutReach - 21 April 2023 - The leading international sportswear brand enterprise in the PRC, China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or "the Company", together with its subsidiaries, the "Group", HKEX stock code: 3818) announces the operational data for the three months ended 31 March 2023 (''FY2022/23 Q4'') and the twelve months ended 31 March 2023 (the ''Twelve Months of FY2022/23'').

In FY2022/23 Q4, the retail performance of Kappa-branded stores of the Group (excluding Kappa kids' apparel business) for the overall platform recorded a mid-to-low teens increase on a year-on-year basis. The total retail performance of the overall platform for the Twelve Months of FY2022/23 (excluding Kappa kids' apparel business) recorded a mid-to-high single-digit decline on a year-on-year basis.

In respect of Kappa-branded stores (excluding Kappa kids' apparel business) which have been in operation since the beginning of the same quarter last year, the same-store-sales for the overall platform recorded a mid-to-low teens increase in FY2022/23 Q4. For the Twelve Months of FY2022/23, the same-store-sales for the overall platform (excluding Kappa kids' apparel business) recorded a mid single-digit decline on a year-on-year basis.

As at 31 March 2023, the number of Kappa-branded stores of the Group was 1,025 (excluding Kappa kids' apparel business), which was a net decrease of 158 as compared to those as at 31 March 2022.

Ms. Cherry Chen, Executive Director, Co-chairman and Co-president of China Dongxiang, said, "The consumer market in China has rebounded significantly after the pandemic, while the sportswear market is gradually recovering. In the face of changing consumer needs and market conditions, the Group continued to drive its long-term strategy and uphold long-termism as its core value, advanced its brand and product innovation in an orderly manner, including the strategic planning of product lines, marketing activities and channels, and focused on sustainable development. The Group's KAPPA brand has made initial achievements since the beginning of the year. Looking ahead, the Group will steadily progress alongside the market development in China to adapt to new market consumption patterns."

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About China Dongxiang (Group) Co., Ltd. (Stock code: 3818)

China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise in China which has been listed on the Main Board of the Hong Kong Stock Exchange since 10 October 2007. The Group is primarily engaged in the design, development, marketing and wholesale of branded sportswear in China. Currently, China Dongxiang owns all rights to the internationally renowned Kappa brand in Mainland China and Macau. Since April 2008, the Group became the owner of the brand PHENIX. PHENIX is a well-known skiing brand in the international market.