Chairman Statement

In 2020, despite the complex and changing external economic environment, the Group overcomes the challenges by actively increasing its operational efficiency, deepening the branding and retail business and constantly strive to advance in the difficult situation for business operation.

After completing the acquisition of the global trademarks and patents of “SKINS”, a compression sportswear brand, at the end of 2020, the Group formed a joint venture with ITOCHU Corporation (“ITOCHU”), one of the largest comprehensive trading companies in Japan, to jointly operate the worldwide business of “SKINS”. The Group believes that, cooperating with ITOCHU will enhance the competitive advantage of “SKINS” and build a solid foundation in developing the new market.

Further, the Group works together with Japan DESCENTE LTD. (“DESCENTE”), which focuses on sports brand operation, to deepen the root in China’s swimming product market through the joint venture together and jointly operated “arena” brand; it is committed to bringing quality products for domestic swimming enthusiasts and catering market demand on swimming clothing trend. With the influence and profound experience of DESCENTE in sports branding community, as well as the competitive edge of the Group, “arena” has become a leading swimming brand in the China’s market.

As for the international footwear brand “PONY” owned by the Group, it will march towards the milestone of half a century of establishment in 2022. The Group has been preparing for the promotion work actively, planning a series of celebratory events awaited by “PONY” enthusiasts. “PONY” will reinforce its development along the route of its reform, and continuously explores and adjusts the operating strategies with its global trading partners to accelerate its pace on global development.

After years of continuous operations and reform, the sports brand business of the Group has gained a foothold in the PRC and expanded internationally. With diversified categories of sportswear, it grasps different business opportunities in sports and complements the advantages of each other. The Group believes that, the synergy between “SKINS”, “arena” and “PONY”, will strengthen the position of the Group in sports brand and lead the Group to advance.

In addition to operating sports brands, in different areas of the country, the Group strategically renders “Outlets + Community Malls” as the retail business and embraces big consumption as well as the business opportunities brought by internal circulation. Outlets located in Xiamen, Shenyang and Anyang focus on offering fashion shopping and entertainment consumption brands became admirable spots for consumers to visit at leisure; community malls located in Tianjin and Chongqing centre around residents in the Municipality, providing them with necessary consumption and services such as fitness, car detailing and study centre. During the Year, outlets continued to attract a number of prestigious international brands to expand their businesses and their brand portfolio was optimized continuously. In order to further enhance the operation efficiency, the expansion project in the northern zone of Shenyang Park Outlets is under construction. It is expected that the completion will be in September 2021. The stationed brands will be more diversified at the time of completion. After years of operating history, “Park Outlets” has gradually built a chain retail brand to satisfy consuming needs in different aspects and works with different brands to serve a wide range of terminal consumption populations.

Despite the challenging business environment in 2020, the financial business of the Group kept developing steadily, and upholds a practical, professional, concentrated business policy as always, to be devoted in wealth management and appreciation. To exert the advantages of the Group in financial business and to move a further step in China’s retail layout, in early 2020, the Special Purpose Acquisition Company (SPAC) founded by the Group and international mutual fund in 2018 has combined a mobile digital media company, which mainly brings a brand-new consuming experience to audience on different platforms through various short videos, online variety shows and live broadcasts. The Group believes that, the mobile digital media company will bring a conducive synergy to the brand’s expansion in the long term.