(28 October 2021 — Hong Kong) Topsports International Holdings Limited ("Topsports" or the "Company"; Stock Code: 6110) announced its unaudited interim results for the six months ended 31 August 2021 (the "Reporting Period").

Looking back at the Reporting Period, Topsports made timely predictions and adjustments to market changes, and actively met challenges. During the Reporting Period, benefiting from the 20-year experience accumulated in the deep cultivation of the industry and the cooperation with partners, the Company once again promoted the healthy and sustainable growth of results through strong resilience, strengthened the business moat, and made a further step on the road of high-quality development. Meanwhile, the Company persisted in exploring on how to enrich its products and services offerings in multiple realms, in order to closely link up its major business focuses with the consumer-centric traffic management including engagement, assembling and daily operations. Accordingly, the Company enabled consumers to understand and recognize the brand of Topsports, while it deepened its insights to further fortify its consumer-centric, omnipresent and multi-occasional sportswear retail and service platform fuelled by digitalization.

During the First Half of the Financial Year ended 28 February 2022, the Company’s total revenue decreased by 1.2% year-on-year to RMB 15,573.4 million, its operating profit increased by 7.9% year-on-year to RMB 2,059.7 million. The profit attributable to the Company’s equity holders was RMB 1,430.8 million, increasing by 9.3% year-on-year. Basic EPS was RMB 23.07 cents, increasing by 9.3% year-on-year. Meanwhile, the Board has declared an interim dividend of RMB 13 cents per ordinary share for the Financial Year ended 28 February 2022, continuing to create value for shareholders.

Continue to Focus on Optimizing the Structure of Directly-Operated Retail Network

During the Reporting Period, Topsports continued to focus on the structural optimization of its directly-operated retail store network through the strategy of “Optimized Location + Optimized Operations”. On one hand, together with its brand partners, the Company vigorously promoted the implementation of premium large stores in business areas showing favourable sales potential and upgraded and transformed stores with more potential, to comprehensively enhance the growth momentum. Meanwhile on the other hand, Topsports accelerated the closure of low-productivity and loss-making stores and mitigated the long-tail inefficiency in store structure, to escalate the overall operational efficiency. Structural optimization allows Topsports to constantly improve the interactive experience for its consumers in order to respond to the fast-changing market environment more rapidly, and continue to strengthen the core advantages of its retail network.

As of 31 August 2021, the Company has operated a network of 7,785 directly-operated stores in over 360 cities from tier 1 to 7 cities across the country. As compared with 28 February 2021, it recorded a year-onyear net decrease of 221 stores with gross selling area increasing by 0.8%, and a year-on-year net decrease of 371 stores with gross selling area increasing by 4.9% as compared with 31 August 2020. The percentage of stores with an average selling area of 150 sq.m or larger continued to grow. Among them, stores over 300 sq.m accounted for 10.8%, representing an increase of 1.4 percentage points as compared with 28 February 2021 and an increase of 2.8 percentage points as compared with 31 August 2020.

Continue to Deepen the Long-term Digitalization by "Precision + Efficiency" Focuses

The Company has established its database structure for back-end supporting platform and front-end consumer engagement interface, and further upgraded the relevant systems on this basis. In addition, it has launched the middleware system with smart data analytic functions by phases as the basis to empower the long-term iteration of its front-end and the back-end systems.

At the back-end supporting platform level, the Company’s digital procurement and merchandise management system was fully applied from principle brands to all brands in total, and extended to downstream retailers at scale, leading to the improvement in the store-level automated order procurement capability, the enhancement of its inventory management of stores, and the reduction of risks. During the period, the Company engaged with approximately 17 million members through dozens of automatic marketing activities in the new system.

At the front-end consumer engagement level, on the basis of continuously expanding online social communities, the Company steadily promoted the application and upgrade of tools including mini-programs and mobile payment to enable its front-line staffs to carry out operation of private domain traffic management in more efficient manner. The sales contributed from online private domains helped the Company efficiently mitigate the unfavourable effects caused by traffic decline during the recent regional resurgences of the pandemic, and contributed to the healthy and sustainable growth of its business.

At the middleware intelligence analysis level, Topsports continued to focus on building its own intellectual analytical tools and facilitate the front-end retail operation, making the three major links (people, products and marketplace) smooth. On the basis of the original tools, the Company continued to facilitate and empower work and tasks of private domain by using standard modules through digitalization and further reduced burdens by applying more centralized and precise consumer analytic data to store-level operation at scale. At the level of products and marketplace, Topsports also conducted thorough analysis on the immense data resources, supporting by its model, to enhance the accuracy of operation optimization and channel decision-making.

Dual-Expansion Achieved by Enlarged Membership Scale and Enhanced Member Loyalty

During the Period, Topsports continued to offer diversified membership activities and quality services through consumer engagement cross multiple occasions as well as precise digital marketing to strengthen consumers’ awareness and recognition of Topsports brand. While the cumulative number of enrolled members steadily increased, the proportion of total in-store retail sales (including VAT) contributed by members maintained stable with more significant contribution from existing members.

As of 31 August 2021, the Company’s cumulative number of enrolled members reached 47.2 million. During the latest quarter as of 31 August 2021, 95.6% of the total in-store retail sales (inclusive of VAT) was contributed by its members, still maintaining a high level. Meanwhile, TOPSPORTS app achieved over 3.5 million cumulative users as of 31 August 2021.

Expand Services Offerings with Thorough Engagement to Enfold the Complete Consumer Journey

While providing the quality sports services and experience to consumers through omnipresent retail at scale, the Company is also actively exploring and extending its service realms, with a hope to achieve in-depthexploration of consumer value by expanding its coverage towards more segments of value chain among the thorough consumer journey, and to fortify its moat more solidly to succeed amid the market dynamics.

TOPSPORTS, the Company’s official WeChat account for publishing latest messages, had been subscribed by more than 25 million followers as of 31 August 2021, and the quality and popularity of its content are continuously affirmed by fans. Over 50% of the articles published on TOPSPORTS received more than 100,000 views. Meanwhile, the Company built awareness through the penetration of trendy sports lifestyles and made its role evolved from the original traditional daily shopping assistant to a more distinctive topic expert, and a comprehensive and long-term consumer companionship as well. In July 2021, TOPSPORTS and Migu jointly launched a Pop-up exhibition at the 19th China Joy Expo, attracting the enthusiastic participation of audiences.

Outlook

Looking ahead, Topsports will persist in expanding stores coverage through “Optimized Location + Optimized Operations” strategy, constantly deepen digital transformation with “Precision + Efficiency” in the long term, continue to expand brand offerings and deepen cooperation with brand partners, focus on consumer interaction and traffic management to seek synchronized elevation of membership scale and stickiness, and to extend its service offerings to cover more segments of value chain within consumer journey and further deepen its consumer value exploration.

The management of Topsports said, “Topsports confronted the market challenges and achieved new breakthrough with the agility to overcome the dynamics through continued iterations amid an even more volatile environment. The conjunction of all the variants and uncertainties imposed an unprecedented encounter to Topsports despite its know-how fortified through more than 20 years dedication in this industry. Nevertheless, the attraction of retail appeals through thrilling dynamics with the competitiveness of leading retailers unveils in their calibres to navigate the ever-changing market. Topsports feels very confident ingrasping brand new opportunities to achieve quality long-term development and continually create long-term value for its consumers, shareholders and all of its partners sustainably. ”

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About Topsports International Holdings Limited