Chairman Statement

On behalf of the board (the “Board”) of directors (the “Directors”) of Symphony Holdings Limited (the “Company”), I hereby present the unaudited consolidated interim results of the Company and its subsidiaries (collectively referred to as the “Group” or “Symphony Group”) for the six months ended 30 June 2024 (the “Period”) together with comparative figures for the corresponding period in 2023 (the “Corresponding Period”).

During the first half of 2024, mainland China’s economy was generally stable and domestic demand promoted the growth of consumption power. However, high interest rates and turbulent geopolitical situations had made the overall business environment inconceivably challenging. Presented with this unfamiliar landscape, Symphony Group has adopted a downto- earth attitude to pursue progress while ensuring stability and continuously improved its competitiveness in the complex and ever-changing market environment.

The Group is operating “Park Outlets” outlets and community malls in different regions of mainland China. Located in Xiamen, Shenyang and Anyang, the outlets offer luxury fashion, outdoor and sports brands, blending shopping and entertainment into one place. In the first half of the year, Xiamen Outlet recorded double-digit growth year on year, and set a new monthly performance record. Shenyang Outlet achieved satisfying performance and even received the honour of being ranked among the top 50 outlets in China. Results of online promotion and Big Data operation were remarkable, with the number of WeChat fans and online membership cards both achieved double-digit growth year-on-year; the corporate WeChat group was officially launched in June, providing purchase agency, event traffic directing and other services to promote customer interaction and second-time visits to the outlets. “Park Outlets” in Tianjin and Chongqing provide residents with daily necessities. During the Period, performance of our community malls was stable, with merchants mainly in the catering and service industries bringing stable footfalls. The “Children’s Playground” in Chongqing community mall completed an upgrade project at the beginning of the year, upon which it is now providing a new and more diversified playground experience and has become a popular spot in the area.

The Group’s branding business covers different fields. It currently operates the world’s first compression sportswear brand “SKINS”, health care business Supremium Bio-Technology Limited (“SBT”) and Japanese wine brand “Hakuryu”. “SKINS” is jointly operated by a joint venture, which was formed by the Group and Itochu Corporation, one of Japan’s largest conglomerates. During the Period, “SKINS” carried out a number of optimizations, including launching new forms of promotions, and developing a network of partnership in various regions etc. Faced with intensifying competition in the compression sportswear market, the Group will flexibly adjust its business strategies in response to market conditions to ensure long-term development of the brand.

As for SBT, which focuses on the local health care market, it is mainly engaged in the R&D, production and distribution of health care products. Its sales network covers 700 pharmacies and duty-free shops in Hong Kong. During the first half of the year, tourist arrivals to Hong Kong increased by more than 60% year-on-year, driving SBT’s business to achieve considerable growth. At the same time, SBT has been deepening its sales network, including establishing a partnership with Hong Kong’s century-old ginseng, antler and seafood brands, entering the leading e-commerce platforms in the Mainland and exploring business in Southeast Asia. The Group invested in Japan’s 200-year-old Yoshida Brewery Limited in early years. The brand has been actively using exhibitions to increase exposure, strengthen social media promotion and expand cooperation networks to seize market opportunities for Japanese wine.

The Group has been operating financial business in Hong Kong for a number of years now, mainly providing margin financing, underwriting and sales, consulting services and lending. In recent years, operating environment of Hong Kong’s capital market has been rough due to the continued high-interest rate environment and weak fund-raising activities. In spite of the harsh reality, the Group’s financial business has remained healthy and stable through good risk management and with a solid foundation.

Looking ahead, the Chinese government is actively expanding domestic demand and enhancing market confidence, and has introduced a number of sharply-focused and well-balanced policy measures to optimise the economic structure. The Group firmly believes that under the forward-looking planning of the central government, China’s economic strength will be solid and the long-term positive momentum will remain intact. In addition, the market expects the US Federal Reserve to start an interest rate cut cycle soon, which is believed to have a positive impact on the overall investment environment. As it stands, both opportunities and challenges are featured in the business operation of the Group and it will enhance its own advantages and promote the core competitiveness of each business segment.

For the retailing segment, “Park Outlets” will devise a comprehensive structure that will encompass events, media, selfmedia, shopping space and joint effort with other parties in pursuing simultaneous increase in foot traffic and sales. The Group will continue to understand consumption trends with keen market acumen and strive to create a consumption point loved by a new generation of customers.

In terms of branding business, the Group believes that market competition will remain extremely tight. Major brands will respond flexibly to market demand. The Group will expand and optimise the product chain in the compression sportswear business, developing with its partners in various regions. The Group’s health products business will continue to be Hong Kong-based, while taking a global view to capture the opportunities arising from growing demand in the healthcare market. For the Japanese wine business, it will deepen the segment’s sales channel matrix, establish a good foundation and gradually increase market awareness. The Group is cautiously optimistic about its future development and will strive for progress and spare no effort in seizing every favourable opportunity.

On behalf of the Board, I hereby express my sincere gratitude to the shareholders, our staff, the banks, our clients and our business partners for their trust and support. The Group will strive to boost business development and keep excelling in order to create greater value for our stakeholders.