Tempus Holdings Achieved Stable Performance in 2018 Interim Results; Actively Faced Challenges Brought by the Sluggish Market

HONG KONG – (ACN Newswire) – Tempus Holdings Limited (“Tempus Holdings” or the “Company”, stock code: 6880.HK) was pleased to announce its interim results for the six months ended 30June 2018 (the “Reviewed Period”).

During the Reviewed Period, the revenue and gross profit remained stable, with a revenue of approximately HK$387.0 million, representing an increase of 0.3% as compared with approximately HK$385.8 million (restated) for the same period of 2017. Profit for the year was HK$7.1 million, representing an increase of approximately 61.4% as compared with approximately HK$4.4 million (restated) for the same period of 2017. The increase in profit for the Reviewed Period was mainly attributable to (1) the gain on fair value change of the investment properties held by the Company; and (2) share of results of associates, which were partially off set by the increase in finance costs and administrative expenses.

Steady Growth in Health and Wellness Business
The Company has continuously adhered to the business philosophy of excellent product quality and innovation, which enables its health and wellness business to maintain stable revenue growth. During the Reviewed Period, the Company recorded revenue in health and wellness business of approximately HK$208.5 million, representing 53.9% of the total revenue. The Company continued tofocus on the innovation and breakthrough in sales channels, marketing and product for health and wellness business.During the Reviewed Period, the Company launched a total of 20 new products, generating HK$17.2 million, representing 8.2% of the Company’s revenue from the health and wellness business. The Company explored proactive sales channels alongside with its traditional sales channels to expand its market size and increase revenue, which successfully stimulated revenue from internet sales amounting to HK$9.1 million, representing an increase of 33.5% from the same period in 2017.

The Company continues to strengthen its sales channels and expandits geographical market coverage. During the Reviewed Period, the Groupoperated a total of 153 retail outlets, with110 retail outlets in Mainland China(mainly located in the Yangtze River Delta, the Pearl River Delta, Beijing-Tianjin-Hebei regions and Chengdu), 24 retail outlets in Hong Kong and Macau, as well as 19 retail outlets in Singapore and Malaysia.

Prominent advantages in trading and logistics business
The Company strives to transform itself from product to product-plus-service.Since 2016, the Company actively invested and acquired the service innovation companies being related to global merchandise trade and cross-border logistics business and playing a significant role in the upstream and downstream of the Company’s ecological supply chain, thus further mapping in the various segmentation of trade and logistics business. In 2017, with keen market insight, the Company captured and participated in investment opportunities in relation to high-quality businesses, and accelerated the development of trading and logistics business through a series of acquisitions and investments.In the first half of 2018, the Company continued to enhance its service capability and industrial mapping in the field of commodity circulation.Revenue generated from trading and logistics business reached approximately HK$178.5 million, representing 46.1% of the total revenue.

The outbreak of Sino-US trade war in the first half of 2018 caused adverse effects on the general business environment as well as negative market sentiment across the Asia Pacific region.Faced with various unstable economic factors, the Company forged ahead and made advancements, adjustedits strategies actively, focused on its core business, and expandedits qualified resources in the industrial service chain to continue to strengthen its competitiveness and adaptability. During the Reviewed Period, the Company continued to expand its customer base, dig deeper into customer value and improve service quality. The revenue from trading, transportation services and warehouse and other services for the Reviewed Period was HK$13.4 million, HK$151.4 million and HK$13.6 million, respectively, representing 7.5%, 84.9% and 7.6% of the Company’s revenue generated from the segment of trading and logistics business, respectively.The Company’s network of the transportation services has been well developed. The Company has established four major distributioncentres located in Guangdong, Sichuan, Jiangsu and Liaoning and numerous branches and offices covering most provinces in the Mainland China, with the competitive advantage being more prominent.

Mr. Li Dongming, the Chief Executive Officer and Executive Director of Tempus Holding Limited believes that, “Affected by the turbulent market environment in the first half of 2018, the general business environment and consumers sentiment across the China region has been continuously undermining. The Company achieved breakthrough development through actively responding to challenges from the market and industry, as well as fully grasping business development opportunities. The Company will continue to integrate and enhance the qualified resources and business development capabilities in the trade and logistics field, strengthen resource integration and improve operations, as well as enhance the business scale of the Tempus Value Chain, Tempus Sky Enterprise Limited, and Yundongli. Meanwhile, the Company will further seek for innovation and breakthrough in sales channels, marketing and product for health and wellness business, thereby further enhancing the Company’s business scale and profitabilityas well as creating greater value for shareholders.”

About Tempus Holdings Limited
Tempus Holdings Limited (6880.HK), member of the Tempus Group, was listed on the mainboard of HKEx in 2011. As Tempus Group’s key overseas capital operation platform, Tempus Holdings adheres to the concept of the parallel development of industrial and investment, focusing on two major business segments – the health service and commodity circulation, and strive to achieve the overall strategic objective “develop global value chain, build large consumer ecosystem”.

Tempus Holdings has been devoting itself to exploring new business in the section of commodity circulation in recent years. Through a series of investment, mergers and acquisitions, Tempus Holdings has become an integrated logistics service enterprise, which integrates warehousing and transportation, supply chain finance, commodity trade and internet platforms. The “OTO”, founded in 1978, is the flagship brand under Tempus Holdings’ health business section and then became the market leader of health and wellness products. OTO has established comprehensive sales network in the PRC, Hong Kong, Macau, Singapore and Malaysia etc. With sound international reputation, OTO products also reach North America, Oceania, Europe and Latin America through export.