HONG KONG, CHINA - MediaOutReach - 17 January 2019 -The leading international sportswear brand enterprise in the PRC, China Dongxiang (Group) Co., Ltd.("China Dongxiang" or "the Company", together with itssubsidiaries, "the Group", HKEx stock code: 3818) announcesoperational data for the fourth quarter of 2018 (4Q2018).

In 4Q2018, the retail performance of Kappa stores (excluding Kappa Kidsbusiness and Japan business) for the overall off-line platform recorded a highsingle-digit growth YoY, while the same store sales reporteda low-single digit increase year-on-year ("YoY").

Mr. Zhang Zhiyong,Executive Director, CEO and President of China Dongxiang, said, "The Group's performance in 4Q2018was in line with the management's expectation. The newly added distributorsin the first half of last year, together with the direct-franchise model, contributed to the net increasein the number of Kappa stores while ensuring sufficient product supply, which resulted in positive retail sales growth. With thereform measures on distributors almost completed, we will further optimise the structure of retail channels, manage and control our products in a moreeffective manner to accelerate turnover in channel inventory in the future. We believe that the Group will benefit from a variety of initiativesimplemented in distributors, channels and products, bringing significantachievements in operational performance."

About China Dongxiang (Group) Co., Ltd. (Stock code: 3818)

ChinaDongxiang (Group) Co., Ltd. is a leading international sportswear brandenterprise in China which has been listed on the Main Board of the Hong KongStock Exchange since 10 October 2007. The Group is primarily engaged in thedesign, development, marketing and wholesale of branded sportswear in China.Currently, China Dongxiang owns all rights to the internationally renownedKappa brand in China, Macau and Japan. On 1 May 2008, China Dongxiang completedthe acquisition of PHENIX, a Japanese sportswear enterprise. PHENIX is the mostpopular ski brand in Japan with the largest market share, as well as awell-known brand in the international market.