Zhongmin Baihui Retail Group Ltd. 80 Marine Parade Road #13-07 Parkway Parade, Singapore 629528 Tel: (65) 6440 5297 / Fax: (65) 6440 5274 (Company Registration No.: 200411929C)

MEDIA RELEASE 3 April 2020 Zhongmin Baihui Net Profit Grew 29.0% in FY2019 to RMB52.2 million  Contribution from 4 new stores opened in 2019 boosted revenue  Changsha outlet mall posted positive contribution of RMB5.9 million  Positive same store sales growth of 1.0% in FY2019  Proposed final dividend 1.5 SGD cts

Zhongmin Baihui Retail Group Ltd., (“Zhongmin Baihui”, “中闽百汇” or “the Group”), an established PRC retail brand that operates and manages a chain of department stores and supermarkets in Province, is pleased to announce that it had turned in a set of satisfactory result for the full year ending 31 December 2019.

Year End Dec 31 4Q'19 4Q'18 Chg FY'19 FY'18 Chg

RMB mil RMB mil % RMB mil RMB mil %

Revenue 264.3 238.1 11.0% 1,050.9 967.0 8.7%

Gross Profit 76.6 73.0 4.8% 298.2 280.3 6.4%

Profit before taxation 3.1 -0.0 NM 77.8 65.2 19.4%

Profit/(loss) after taxation -5.8 -7.2 -19.5% 52.2 40.5 29.0%

EPS (RMB cents) -3.0 -3.8 -19.5% 27.2 21.1 29.0%

Due to contribution from four newly opened stores in 2019, the group’s revenue rose 11% to RMB264.3 million in 4Q2019 and 9% to RMB1,050.9 million in FY2019. The four stores added 30,000 sqm of gross floor area (“GFA”), boosting our total self-owned store GFA to 176,600 sqm by the end of FY2019. The Group’s same store sales growth (“SSSG”) turned around from negative to positive, improving to 0.7%

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(-3.0%) in 4Q2019 and 1.0% (-1.2%)in FY2019. The better performance is the result of strengthening of our sales management over the year.

The gross profit margin for the direct sales activities improved slightly to 12.5% (12.0%) in 4Q 2019 and 12.7% (11.4%) in FY2019 mainly due to increase in sales of higher margin merchandise. A number of non-cash items resulted in the loss in the 4Q2019 - RMB3.4 million due to accrued step rental income written off for early termination of some tenants’ leases, RMB2.0 million impairment charges for under-performing stores and RMB2.5 million for impairment of advance to Citi- Base Commercial Co., Ltd., which the group previously had a 19% interest. An associate that manages the Changsha Sasseur (ZMBH) Outlets in Changsha contributed RMB5.9 million in FY2019 versus a loss of RMB4.5 million in FY2018. However, pre-operating loss of RMB1.5 million was incurred by the Group’s new joint venture, Wuxi Shi Yueshang Outlets Co., Ltd., which will manage an outlet mall in Wuxi City. With the addition of Guanqiao Store in 1 January 2020, the Group will now have 18 stores under the Zhongmin Baihui brand name, comprising 15 self-owned stores and 3 managed stores, with a total GFA of 211,400 sqm (self-owned stores GFA 183,000 sqm, managed stores GFA 28,400 sqm). The Group plans to add three more stores in FY2020 - a 43,700 sqm store in Longwen , City, a 15,200 sqm store in Zhangzhou China Merchants Economic and Technological Development Zone (CMZD), Zhangzhou City and a supermarket of 3,500 sqm in , City. Our self- owned store GFA is expected to increase by 39% from 176,600 sqm as at end 2019 to 245,400 sqm by end 2020. Our outlet mall business plan is largely still on track as we have started the necessary activities on our Wuxi Mall project, which is expected to be operational in 2H2021. “The Group believes our business is resilient enough to withstand the current period of uncertainties arising from the COVID-19 pandemic. We are looking forward to growing the business in 2020 with our expansion plan.” - Mr. Lee Swee Keng (“李瑞庆”), Executive Chairman of Zhongmin Baihui

About Zhongmin Baihui Retail Group Ltd. (“Zhongmin Baihui”) Zhongmin Baihui is principally engaged in the ownership, operation and management of department stores and supermarkets in the People’s Republic of China (the “PRC”) under the name, “中闽百汇”. The first modern 中闽百汇 store was opened in Anxi County, Quanzhou City, Fujian Province in 1997. Since then, the Group has expanded its footprint in Fujian to 15 self-owned stores and three managed stores, spanning an aggregate gross floor area of 211,400 sqm.

With over 20 years of strong retail reputation under the “中闽百汇” brand name, the Group offers a pleasant shopping experience with a wide variety of quality merchandise, lifestyle products and customer-oriented services catering to the middle-income consumers. The Group’s revenue is mainly derived from four sources, namely direct sales, commissions from concessionaire sales, rental income and income from managed rental. For more information, visit http://www.zhongminbaihui.com.sg or email [email protected].

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