2Q 2020 Financial Results

■ - Outlet's Competitive Edge Against Other Retail Models Product Mix Pricing Strategy Consumer Experience Outlets Department Store Luxury and high-end brands Middle to high-end brands Shopping Mall Middle to high-end brands Normal Normal Large Discounts Suburbs Middle Class (small area with compact layout) City Center Mass Market City Center Mass Market Location Segment Authenticity Brand Owners Advantages Over Online Higher Profit Margin Quicker Payback Period Enhanced Inventory Management Online Platform Low priced products Low x (no in-store shopping experience) Mass Market Possibility of counterfeit goods Customers Better Shopping Experience Outlet Malls' Competitive Edge ☐ Product Authenticity High Discounts Access to a Wide Range of Products Why outlet is generally not impacted by e-commerce - Product mix per transaction via online platform ~ RMB 200 vs per transaction at the outlet malls ~RMB800/1000 => minimal product overlap Economics- online sales of outlet brands incur 20% commission vs 10-16% commission at the outlets. Authenticity - 10X penalty / reward for selling by merchants / reporting by customers, of fake goods ensure no fakes goods at outlet Source: China Insights Consultancy - Independent Market Research Report SGinvestors REIT SASSEUR 16

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