Giordano International Limited · HKEX:709

Giordano International — H1 2025 Earnings Presentation

43 slides from Giordano International's earnings presentation, Aug 29, 2025

  1. Slide 1: Giordano 2025 1H Results – Analyst Day

    Giordano 2025 1H Results – Analyst Day 29 AUGUST 2025

  2. Slide 2: Beyond Boundaries Strategy 2030

    BEYOND BOUNDARIES STRATEGY 2030 To transition Giordano into a growth company

  3. Slide 3: Beyond Boundaries

    Beyond Boundaries We are in our first year of our strategic 5 year cycle REVITALIZE & RESET RECALIBRATE RECONNECT 2025 2027+ 2026-2027 2024  Enhancing Fundamentals  Revitalize the brand portfolio  Regain our position in Greater China (ML China + A year of  Strengthening our Go-To-Market Strategy

  4. Slide 4: Beyond Boundaries strategy has key strategic choices

    Beyond Boundaries strategy has 4 key strategic choices Brand Digital Greater One Portfolio First China Giordano Men, Women, Junior • Revitalize Giordano • Digital • Mainland China • Centralized HQ • Beau Monde by Transformation Brand revitalisation Functions Giordano • eCom Acceleration • Marketing

  5. Slide 5: 2025 A Year of Reset: P&L Overview – First Half 2025

    2025 A Year of Reset Laying the groundwork for sustainable growth P&L Overview – First Half 2025 Group Revenue Improved OPEX to sales Net Profit Interim 7.5 HK performance in ratio down dividend of Cents +3.8% Net Sales 4 Key Strategic Inventory down HK$121m Per share (Core Business) Choices YOY (vs

  6. Slide 6: Net Sales growth by Region (Core Business)

    Net Sales growth by Region (Core Business) Mainland China +12% Physical -11% Online +29% Total Revenue +3.8% GCC +2% -2% Hong Kong Taiwan -2% Southeast Asia and Wholesale to overseas Australia (exclude Indonesia Giordano -6% franchisees Indonesia) +34% -1%

  7. Slide 7: Net Sales performance by Region (non-Giordano Brands)

    Net Sales performance by Region (non-Giordano Brands) Indonesia Non-Giordano -23%

  8. Slide 8: Growth in 1st Half in Strategic Growth Areas

    Growth in 1st Half in Strategic Growth Areas 1H Q1 Q2 Digital First (Online) +26% +18% +32% Mainland China +13% +8% +18%

  9. Slide 9: Hong Kong, our Home Market, is improving performance

    Hong Kong, our Home Market, is improving performance against a retail environment which is declining Q1 Q2 Giordano -6.5% +2.2% Apparel Industry* -9.7% -1.4% *Source: HK Census and Statistics Department

  10. Slide 10: Difficulties in..

    Difficulties in.. Indonesia South Korea Non-Giordano Brands

  11. Slide 11: 1H Revenue Growth by Brands

    1H Revenue Growth by Brands (in HKD million) Men 1,127 -0.7% Women 380 +10.5% Junior 86 +16.2% 1,593 +2.6% 122 Flat 93 +49.7% 154 +18.5% eShop 11

  12. Slide 12: Success Stories: Korea Collection

    Success Stories We launched our Korea Collection in Mainland China online and in Hong Kong

  13. Slide 13: Success Stories: Minions in May

    Success Stories Minions in May Units sold 132,271 Sell through 71%

  14. Slide 14: Success Stories: Liquid Touch in April

    Success Stories Liquid Touch in April Units Sold: 456, 425 Sell Through: 55%

  15. Slide 15: Opening of Giordano Ladies in Causeway Bay

    Opening of Giordano Ladies in Causeway Bay

  16. Slide 16: Our Focus Areas for 2025

    Our Focus Areas for 2025 Year 1 of Beyond Boundaries – Reset Mainland China eCommerce Investment into Reset Acceleration Brand & Product Sourcing People & Culture 16

  17. Slide 17: Overview

    Overview • Group revenue increased by 1.6% to HK$1,934 million (1H24: HK$1,903 million)  Online business achieved 26.1% YOY growth  Excluding the adverse impact from our Non-Giordano Brands in Indonesia, up 3.8% • Gross margin -3.3pp to 55.6% (1H24: 58.9%)  1. change in channel mix with higher on

  18. Slide 18: Revenue by market

    Revenue by market +1.6% to HK$1,934 million (1H24: HK$1,903 million) • Group revenue would be up 3.8% if excluding the adverse impact from the Non-Giordano Brands • Greater China retail +4.4%  Strong performance of online business in Mainland China +29.1%  ‘Digital-First’ strategy • Southeast Asia

  19. Slide 19: Revenue by channel

    Revenue by channel Offline  -4.5% (-2.7% if excluding Non-Giordano Brands)  Reset plan in Mainland China  Focus on Southern China Online  Surged by 26.1%  Q2 +32.3%  Mainland China +29.1%  Rest of the World +14.9% (+28.9% if excluding Non-Giordano Brands) Wholesale  +20.2%  partly due to st

  20. Slide 20: Gross profit

    Gross profit  Gross profit -3.9% YOY; gross margin -3.3pp to 55.6% (1H24: 58.9%)  Online and wholesale business contributing more significant growth  Strategic clearance of aged inventories, including Non-Giordano Brands 1H2024 Currency 1H2025 gross Product Selling translation gross (In HK$ milli

  21. Slide 21: Operating expense

    Operating expense • Operating expense-to-revenue ratio -0.6pp August 29, 2025 Giordano 2025 Interim Results Announcement 21

  22. Slide 22: Changes in PATS

    Changes in PATS 1H2024 1H2025 PATS HK$120m HK$121m Net Margin 6.3% 6.3% August 29, 2025 Giordano 2025 Interim Results Announcement 22

  23. Slide 23: Market update: Greater China

    Market update: Greater China Mainland China • Total revenue +12.3%  Q1 +5.6%; Q2 +18.4% • Strong online business +29.1%  Q1 +20.0%; Q2 +36.0%  ‘Digital-First’ strategy  Different online platforms – Douyin and VIP.com • Offline business -14.3%  Mainland China reset plan  Closure of unprofitable

  24. Slide 24: Market update: Southeast Asia and Australia

    Market update: Southeast Asia and Australia (“SEA”) SEA revenue • Revenue -6.9%, largely attributable to the weak performance of Non-Giordano Brands • If excluding Non-Giordano Brands, revenue drop limited to -2.7% • Proactively embarked on a brand portfolio reshaping strategy • Online business +4.8

  25. Slide 25: Market update: Gulf Cooperation Council

    Market update: Gulf Cooperation Council (“GCC”) (In HK$ million) 1H2025 1H2024 Revenue 368 362 Franchised stores 44 41 Direct-operated stores 142 138 Store at period-end 186 179 • GCC revenue up 1.7% • Sustained growth despite ongoing geopolitical tensions • GCC region fuels growth: Improved product

  26. Slide 26: Inventories

    Inventories  Group inventories closed at HK$513 million (1H24: HK$514 million)  ITOC -11 days YOY, 108 days (1H24: 119 days)  Effective inventory management  Strategic price promotions to clear aged inventory  Finished goods at suppliers  Cut by almost half  Less off-balance sheet liability 

  27. Slide 27: Slide 27

  28. Slide 28: Beyond Boundaries Strategy 2030

    BEYOND BOUNDARIES STRATEGY 2030 28 28

  29. Slide 29: Transform into a growth company

    Transform into a growth company

  30. Slide 30: Beyond Boundaries strategy has key strategic choices

    Beyond Boundaries strategy has 4 key strategic choices Brand Digital Greater One Portfolio First China Giordano Men, Women, Junior • Revitalize Giordano • Digital • Mainland China • Centralized HQ • Beau Monde by Transformation Brand revitalisation Functions Giordano • eCom Acceleration • Marketing

  31. Slide 31: Our Core Brands: Value, Korea Collection

    Our Core Brands Value Korea Collection 31

  32. Slide 32: Launching GC

    Launching GC Our brand for young consumers. Land first in Mainland China (Online) 32

  33. Slide 33: Slide 33

  34. Slide 34: Welcome! Roh Jeong Eui

    To start to drive brand heat, we have signed our new brand ambassador Welcome! Roh Jeong Eui 盧正義 To the Giordano family 34

  35. Slide 35: Rejuvenating Giordano Ladies

    We have started to rejuvenate Giordano Ladies to be younger and more relaxed in imagery Before Now 35

  36. Slide 36: Digital First

    Digital First 1H 2025 Rest of the World Mainland China eCommerce is our next +29% wave of growth Rest of the World +15% *3% of Net Sales only

  37. Slide 37: Our Digital growth strategy to boost the business growth

    ML China Our Digital growth strategy to boost the business growth 1H 2025 vs 1H 2024 Social Core Liquidation Engage with Young and New Enhance the launch of new Concentrate on budget- Customers products and nurture the friendly products and clear development of fresh out excess inventory. collection

  38. Slide 38: Launch of the 'Giordano Universe' template

    Launch of the ‘Giordano Universe’ template designed to accommodate multiple brands.

  39. Slide 39: Improving Competency and Capabilities

    Improving Competency and Capabilities Chief Design Chief Product Officer Chief Sales Officer Consultant (eCommerce) Director, Retail and Chief Sourcing Director, eCom (ROW) GM Hong Kong Officer and GM Singapore

  40. Slide 40: 2025 Outlook

    2025 Outlook 3-5% Positive Growth Full Year (Core Business) Profit to grow faster than top line 40

  41. Slide 41: Beyond Boundaries is a growth & investment strategy

    Beyond Boundaries is a growth & investment strategy OUR AMBITIONS FOR 2025 2025 PROFIT AFTER TAX NET SALES GROWTH 除所得税后溢利 净销售额增长 Strive to achieve revenue at a Endeavour to achieve profit high single to low double-digit after tax margins trending compound annual growth rate (CAGR) towards historic l

  42. Slide 42: Looking Ahead

  43. Slide 43: Thank You!

    - ra , yA _ THANK YOU! sa ae * —_—

Giordano International — H1 2025 Earnings Presentation on 6ix