Tycoon Group Announces Profits Rebound Expected with a Record-High Revenue of over 570 Million in 1H2022

HONG KONG, July 27, 2022 /PRNewswire/ -- Tycoon Group Holdings Limited ("Tycoon Group", Stock Code: 3390.HK), an omnichannel brand marketing and management service integrator of health and well-being related products in Hong Kong, today announced that based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2022 ("1H2022") and the information currently available, the Group's net results during 1H2022 is expected to turn around to record a profit of not less than approximately HK$20.0 million as opposed to a loss of approximately HK$10.2 million for the six months ended 30 June 2021 ("1H2021"), in each case, before the share of profit by the non-controlling interests. The expected turnaround in results for 1H2022 is primarily due to the combination of an increase in revenue and gross profit; and a significant decrease in write-down of inventories.

Tycoon Group Holdings Limited specializes in providing one-stop services including brand agent, marketing, management, distribution and sales. Through the online and offline dual-channel commerce strategy, the group distributes and sells over 100 local and foreign brands of PCM, health supplement, skin care, personal care and other healthcare products through an online cross-border e-commerce platforms and offline distribution sale networks. Tycoon Group and China Resources Pharmaceutical (Stock Code: 3320.HK) have maintained a close and long-term partnership, carrying out the tenet of "High-quality, High-efficiency, and Safety" to take care of the health of consumers.

The Group's revenue for 1H2022 is expected to increase by not less than 50% (1H2021: HK$380.7 million) reaching over HK$570 million which is the record high for the first half of the financial year since inception of the Group. Its gross profit for 1H2022 is expected to increase by not less than 60% (1H2021: HK$71.5 million). The Directors of the Group attribute such increase to the significant increase in distribution sale as the group optimized its product portfolio; and the increase in e-commerce sales as a result of continuous efforts in the development and expansion of e-commerce sales.

Besides, for 1H2021, the Group recorded a write-down of inventories of approximately HK$11.1 million for products which were not merchantable and provision for certain health and well-being related products with relatively shorter shelf life.

For 1H2022, the amount of the Group's write-down of inventories is expected to decrease by more than 65%. The expected decrease in the Group's write-down of inventories was mainly due to better inventory management and the Group has taken a more prudent approach in sourcing products and placing of purchase orders.

Mr. Wong Ka Chun Michael, the Chairman and the Chief Executive Officer of Tycoon Group, said, "The expected turnaround in revenue and profit for interim results is all contributed by the forward-looking layout of the management in the early stage of the epidemic. With the development of cross-border e-commerce business, the establishment of online and offline dual-channel commerce strategy, actively expansion in the PRC market, deepen strategic collaboration with stakeholder China Resources Pharmaceutical, development of our own brands, the establishment of sourcing centers in the world and continued sourcing new products to enrich product portfolio. We believe that the Group will repay the support and trust of our shareholders, business partners and customers with outstanding achievements. For more details of our interim results, please refer to the 2022 Interim Results Announcement of the Group which will be announced in August."

About Tycoon Group Holdings Limited (Stock Code: 3390)

Tycoon Group is a reputable omnichannel brand marketing and management service integrator of health and well-being related products. The Group specialise in providing one-stop services for PCM, health supplements, skincare, personal care and other healthcare products, including omnichannel brand agent, marketing, management, distribution and sales. The Group has established a strong online and offline sales network in Hong Kong, Macau and the PRC by cultivating the industry for many years with the mission of bringing health and vitality to consumers in Mainland China, Hong Kong, Macau and Asia-Pacific. The Group has provided over 100 local and foreign brands. In addition, the Group has provided a number of anti-pandemic products in great demand in respond to the pandemic happened in Hong Kong, such as surgical masks, rapid antigen test kits, hand sanitisers and cleaning wipes, etc. With a vision of establishing its own brands of products, the Group develops Private Label Products under its well-received brands including "Boost Guard", "Wakan", and "Kinmen", as well as the own-brand "SEASONS " and "Slimming Expert " launched under the joint venture. Tycoon has established sound relationships with chain retailer customers, with the top two chain retailer customers operating over 470 stores in Hong Kong as at 31 December 2021. The Group is also one of the major distributors for PCM in Hong Kong. For more details, please visit the Group's official website: https://www.tycoongroup.com.hk/

SOURCE Tycoon Group Holdings Limited