(24 May 2021 — Hong Kong) Topsports International Holdings Limited ("Topsports" or the "Company"; Stock Code: 6110) announced its audited annual results for the financial year ended 28 February 2021 (the "Reporting Period").

Looking back at 2020, the unprecedented challenges and complexities which all stakeholders encountered are still reshaping the ongoing present as well as the future. Even with the impacts of the Pandemic, the gross selling area of Topsports’s direct-operated stores recorded positive growth year-on-year, with the total number of stores decreased to 8,006. This once proved the company’s ability to seize potential opportunities amid market dynamics. The consumer engagements have extended beyond the traditional boundaries of physical settings to scale up for more possibilities. The total number of enrolled members reached 40.9 million. During the year, the Company steadily implemented digital transformation initiatives to drive the entire enterprise to gradually step into a more precise and efficient future, in order to provide consumers with incredible services and experiences.

For the financial year ended 28 February 2021, the Company’s total revenue increased by 6.9% year-on-year to RMB 36,009.0 million, the operating profit increased by 20.8% year-on-year to RMB3,989.4 million, and the adjusted operating profit increased by 17.8% year-on-year. The profit attributable to the Company’s equity holders was RMB 2,770.1million, with an year-on-year increase of 20.3%, and the adjusted profit attributable to the Company’s equity holders increased by 16.4%. Meanwhile, the Board has recommended a final dividend of RMB12.00 cents per ordinary share for the financial year ended 28 February 2021. Together with the interim dividend of RMB12.00 cents per ordinary share and the special dividend of RMB40.00 cents per ordinary share, the total dividend for the financial year ended 28 February 2021 amounted to RMB64.00 cents per ordinary share.

Achieved Expansion of Directly-operated Retail Network Amid the Pandemic Impacts

During the year, the Company remain focused on optimized selection of stores locations as well as store upgrade for direct-operated retail store network, accelerating the closure of low-productivity and loss-making stores. Meanwhile, the Company has proactively upgraded the stores with proven higher sales potential to create superior interactive shopping experience, so as to enhance retail network advantages, jointly with brand partners. In terms of the number of directly-operated retail stores, the Company recorded a net decrease of 389 stores year-on-year with gross selling area increased by 4.1 % year-on-year as of 28 February 2021 as compared with 29 February 2020. The percentage of stores with average selling area over 150 sq.m continued to grow. Among these, the number of stores over 300 sq.m. accounted for 9.4%, representing an increase of 2.1 percentage point as compared with 29 February 2020.

Continued Breakthrough on Membership Scale

The Company continued to engage with consumers through multi-occasional connections and to offer diversified activities and benefits to members, so as to enhance consumer’s perception and recognition of Topsports’s brand. During the year, The Company launched the first nation-wide annual membership event named “Member Festival Week”. Through events with a variety of multi-occasional activities combing online and offline, the Company took various measures to reactivate inactive members and enhance the member stickiness with targeted marketing campaigns, successfully creating the IP of “Topsports Membership Week”. The TOPSPORTS app was launched on 14 February 2020, the number of users has exceeded 2.7 million as of 28 February 2021. And the cumulative number of enrolled members of the Company reached 40.9 million as of 28 February 2021. During the quarter as of 28 February 2021, 95.3% of the total in-store retail sales (inclusive of VAT) was contributed by the members, which continuously remained at a high level.

Deepen Digital Transformation to Empower the Business with “Precision + Efficiency” in Long-term

For Topsports, digitalization is going to be a long-term battle for the future. During the Reporting Period, benefited from the well-established digital capabilities, the Company was able to encounter the challenges during the Pandemic while capturing opportunities along with new breakthroughs. The digital transformation was mainly applied in three scopes. As for business operations, by emphasizing on the implementation of technology-enabled initiatives, the Company persistently optimized operation with precision and efficiency through the large-scale application of digitalized procurement and merchandise management systems; by empowering front-line staff through mobile digital toolkits applying integrated real-time data, store ranking, sales overview and store manager report, the Company reduced operational burden for more front-line staffs. As for consumer experiences, the Company accelerated the flexible application of various digital tools based on well-established store-based online social communities, these tools include store-level mini-programs and mobile payments. The newly launched function of Taomi (滔米) and flagship store of mini-programs further enabled the Company to engage with consumers through high-quality products and premium services in a wider scope, respond to their needs with speed and agility. At the same time, the Company  transformed the role of sales staff from a shopping assistant to an expert of content topics by initiating more themed topics and content through the TOPSPORTS Official Wechat Account (滔搏公眾號) and TOPSPORTS app. In addition, the Company empowered consumer insights through refined and precise user labels to generate user profiles with advanced accuracy, which these results could further support front-end business operations, enabling the Company to facilitate the needs of broad consumer groups with precision and efficiency.

Outlook

The Company will continuously accelerate digital transformation with a focus on “Precision + Efficiency” and implement the expansion of store networks with “Optimized Location + Optimized Operations”. The Company will also expand its seamless engagement with consumers through omnipresent, multi-occasional connections, expanding the brand offerings and deepen cooperation with brand partners, and further enrich the customer-centric platform offerings.

Topsports’s management said, “Looking back, the Company has observed the varieties occurred in China’s sportswear market for more than 20 years. To strive for innovations among competitions has been our constant approach as a retail company to overcome market headwinds at times. Looking ahead, we remain optimistic in the market potential and future development of China’s sportswear industry given the supports from national policies as well as rising health awareness amongst the public in light of the Pandemic. We are optimistic that we will continue to explore and seize new opportunities in a changing market environment to achieve breakthrough with quality growth at scale, and continually create long-term value for our consumers, shareholders and all of our partners.”

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About Topsports International Holdings Limited

Topsports International Holdings Limited operates a consumer-centric, omnipresent and multi-occasional sportswear retail and service platform in China. The Company has the industry-leading nationwide and deeply penetrated directly-operated store network of sportswear products in China, covering over 350 cities with more than 8,000 directly-operated stores. It has established a localized, social communities and a sizeable membership base, pioneering various technologies to reach consumers digitally and exploring different consumption settings to cater to customer demand more precisely and efficiently. The Company is dedicated to enhancing its engagement with and understanding of the Chinese consumers in order to offer them better products and experiences alongside its brand partners.