Bossini International announces its 2022 half-year results

The ongoing outbreak of novel coronaviruses and a new global outbreak of highly infectious variants such as Omicron continue to pose a major challenge to the recovery of the retail sector.

Hong Kong has once again faced a new wave of the novel coronavirus outbreak. The fifth wave of the epidemic broke out on a large scale, hitting the local economy hard. Hong Kong’s real GDP contracted 4.0% year-on-year in the first quarter of this year. Due to the severity of the outbreak, the government has enacted a series of strict social distancing measures, including banning on-site restaurants and requiring citizens to undergo mandatory nucleic acid tests. In addition, there have been numerous rumors that the Hong Kong Special Administrative Region government plans to implement a “city lockdown” and universal testing, discouraging citizens from going outside. Except for the purchase of food, daily necessities and anti-epidemic supplies, the public’s general spending desire is low, and the local retail business has entered a cold winter. According to government data, in the first quarter of this year, the total sales value of the local retail sector fell 7.6% year-on-year.

Many provinces and cities in mainland China have been hit by a new wave of epidemics, resulting in various cities being locked down. During the first half of the year, a number of Group stores in mainland China were forced to close. Although the Group reacted quickly by setting up micro sales companies during the period when stores were forced to close, the overall sales performance was still strongly affected due to the epidemic which affected many courier companies during the same period. In addition, we have taken the initiative to ask for rent reductions, which have been granted by some landlords.

Mr. Cheung Chi, co-CEO of Bossini, said: “We believe that in general, the operational situation will remain difficult in the second half of the year. To strengthen the Group’s long-term competitiveness “bossini.X brand stores” to more than 100 by this year. We are also aware of the trend of e-commerce and will therefore actively develop online sales, aiming to increase the share of e-commerce in overall sales from around 8% to around 30%. In addition to the rebranding, the Group will also explore the possibility of collaborating with other brands, including the launch of co-branded products such as shoes, apparel, handbags and accessories. In the coming year s, the “bossini.X” brand will be in a period of investment of product development and channel expansion. Given the uncertainties related to the pandemic and the economy, the Group could continue to incur losses during the investment period.”

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For more information, please contact:

Porda Havas International Finance Communication Group

Kelly Fung/June Tuo

Tel: (852) 3150 6763 / (852) 3150 6755

Fax: (852) 3150 6728

Email: [email protected]

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