Aim to enhance access to massive Chinese market for global brands

SHANGHAI, CHINA - MediaOutReach - 6 November 2018 - Fung Retailing Limited,with a global network of over 3,000 stores, and Alibaba Group Holding Limited(NYSE: BABA), today announced a strategic partnership to bring moreinternational lifestyle brands to mainland China.

(Left to right): Sabrina Fung, Group Managing Director of Fung RetailingLimited); Dr. Victor Fung, Group Chairman of the Fung Group; Daniel Zhang, CEOof Alibaba Group; and Toby Xu, Vice President of Alibaba Group

Thiscollaboration aims to meet the increasing demand of Chinese consumers, buildingon the strengths of both parties in online and offline retailing. At the sametime, it will better serve global brands by leveraging Fung Retailing's global portfolio of brands,offline retail channels and marketing know-how, as well as Alibaba's ecosystem, digital retailleadership, technology, and consumer insights from Alibaba's over 600 millionusers.

Thatwill help global brands tailor their product development and marketingstrategies to meet the ever-changing needs of Chinese consumers. The brands can also draw on Alibaba's new retailchannels, including Tmall and Intime, as well as Fung Retailing's offline stores,thereby reducing costs, risks, and the time traditionally associated withentering the China market.

Underthe MOU, both companies will join forces in global brand recruitment and offerbrands merchandising, marketing and omnichannel distribution services. Thiscollaboration will focus on the mainland China market as a first step, and potentially expand to otherregions riding on Alibaba's platforms.

Speakingduring the signing ceremony at the CIIE in Shanghai, Alibaba Chief ExecutiveOfficer Daniel Zhang said, "It is an honor to kickoff full-scale strategic cooperation with Fung Retailing at the historic ChinaInternational Import Expo. We endeavor to help global brands expand theirfoothold in the China market by fully integrating Alibaba's strong capabilitiesin New Retail, big data and technology with Fung Retailing'sunparalleled advantageous in brand and supply chain resources. We believe thispartnership represents the beginning of a new chapter for New Retail."

FungRetailing Ltd. Group Managing Director Sabrina Fung said retail is changingexponentially, so it's important to stay ahead of the curve, which thisagreement allows it to do.

"Throughthis exciting strategic partnership with Alibaba, we will help customersnavigate the full Chinese retail economy and reach China's 1.4 billionconsumers more easily. In this evolving retail landscape, and faced withchanging consumer behavior and disruptive retail technologies, we are focusedon developing new ways to do business," said Fung.

About Fung Retailing Limited

Theretailing business of the Fung Group are brought together under privately-heldFung Retailing Limited and extend from Greater China to the UK, France, Korea,Singapore, Malaysia, Thailand, and the Philippines through a combined networkof over 3,000 stores. They include stores operated separately and independentlyby publicly-listed Convenience Retail Asia Limited (SEHK: 00831) and TrinityLimited (SEHK: 00891), as well as the privately-held Branded Lifestyle HoldingsLimited, Fung Kids (Holdings) Limited, Toys "R" Us (Asia) Limited, SuhyangNetworks Company Limited and UCCAL Fashion Group. Fung Retailing employs over18,000 staff, and its turnover exceeds US$1.8 billion. The Fung Group(www.funggroup.com) is a Hong Kong-headquartered multinational group whose corebusinesses are in trading, logistics, distribution and traditional and digitalretailing. Note to Editors: Privately-held Fung Retailing Limited is totallyseparate from the publicly-listed company Li & Fung Limited.

About Alibaba Group

AlibabaGroup's mission is to make it easy to do business anywhere and the company aimsto achieve sustainable growth for 102 years. For fiscal year ended March 2018,the company reported revenues of US$39.9 billion.