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China Dongxiang Reports Growth in Same-Store-Sales and Retail Performance for 3Q2018

China Dongxiang Reports Growth in Same-Store-Sales and Retail Performance for 3Q2018

HONG KONG, CHINA - Media OutReach - 15 October 2018 - 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 its operational data for the third quarter of 2018 (3Q2018).

In 3Q2018, same-store-sales of Kappa stores (excluding Kappa Kids business and Japan business) for the overall off-line platform registered a mid-single digit increase year-on-year ("YoY"), while the retail performance recorded a low double-digit growth YoY.

Mr. Zhang Zhiyong, Executive Director, Chief Executive Officer and President of China Dongxiang, said, "In 3Q2018, the Group's operational results continued its upward trend mainly due to encouraging growth in product sales, driving an increased competitiveness of our brand. During 3Q2018, we opened up highly-efficient new stores in a number of well-known shopping malls in the PRC, such as Xidan Joy City, Hangzhou Kerry Centre, and Taiyuan Mixc. More highly-efficient new stores will also be opened in 4Q2018 in other prime commercial districts such as Sanlitun, Beijing, in an effort to optimise our channel distribution. With the above achievements, we believe that Kappa brand has overcome the difficulties, and are confident of the Group's future performance."

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 China, Macau and Japan. On 1 May 2008, China Dongxiang completed the acquisition of PHENIX, a Japanese sportswear enterprise. PHENIX is the most popular ski brand in Japan with the largest market share, as well as a well-known brand in the international market.

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