Wisdom Sports : 2022 INTERIM REPORT

WISDOM SPORTS GROUP

智美體育集團

Stock Code:1661

（Incorporated in the Cayman Islands with limited liability）

2022

INTERIM REPORT

Corporate Information

Corporate information | Management Discussion and Analysis

Management Discussion and Analysis

GROUP OVERVIEW

In the first half of 2022, the novel coronavirus ("COVID-19") pandemic still raged and caused a huge impact in many first-tier cities in China, amidst which the sports industry was still struggling to carry out normal business despite with great effort to avoid the spread of the pandemic and health risks caused by crowd gathering.

While offline events were almost completely stagnant, Wisdom Sports Group (the "Company") and its subsidiaries (collectively, the "Group") were still actively promoting events to satisfy sports enthusiasts. In the first half of the year, the Group successfully organized and completed the online events of the Shenzhen Marathon* (深圳馬拉 松) which lasted for three weeks, and different sports events were designed to meet the needs of runners. In connection with the events, the exhibition and broadcast event of "My Circle of Friends in Shenzhen Marathon" was launched, which gained unanimous recognition from the organizers, sponsors and runners, and made up for the regret that no offline event could be held.

In Tumushuke City, Xinjiang, where the pandemic was under control, the Group successfully organized the "National Fitness Games & Brisk Walking Activity in Tumushuke Corps of the 3rd Division" in the first half of the year, which was kicked off on 10 July 2022 and attracted nearly 1,000 players. Striving for the goal of "scientific pandemic prevention and public's participation", upholding the theme of "walking for fitness and happiness", adopting a combined way of online and offline events, and through the integration of "sports + culture + tourism", the Group successively held the Winter Olympics Science Exhibition, Square Dance Competition, Imposing Gongs and Drums Competition, Fun Games, Men's Basketball League, CBA Friendly Match between Xinjiang Guanghui and Guangdong Hongyuan, etc., which deepened the participants' understanding of Tumushuke City, tested the ability of event operators under scientific pandemic prevention, and promoted the construction of healthy China.

OUTLOOK OF THE INDUSTRY AND THE GROUP

Since July 2022, the national pandemic situation has become stable, and the pandemic prevention policies were adjusted accordingly. With the holding of the Tianshan Marathon* (天山馬拉松), all parties are full of longings and expectations for the long-awaited resumption of offline events. The Group is actively preparing for the online events of the Nanchang Marathon* (南昌馬拉松), and at the same time, the Group is also closely communicating with local event organizers on the launch and preparation of the offline events in the second half of the year, in the hope of presenting more scientific, safe and bright events in the second half of the year to meet the needs of sports enthusiasts for sports events.

Against the backdrop of the severe winter for the sports industry, the Group has broadened its business ideas by actively carrying out business operations and resources sharing with other partners and seeking suitable business opportunities in other sports events and venue operations, aiming to establish a long-term stable cooperation and operation model. Meanwhile, the Group has strictly optimised and controlled costs, and generated income through prudent financial management with its own funds, thereby improving the Group's financial position.

We believe that the severe winter will eventually pass, and the spring of the sports industry will be bound to come. We remain low profile in the harsh winter, and accumulate and improve skills in spring, so as to promote the development of the industry, and facilitate public health. A promising future is coming, let's wait for the flowers to bloom.

*  for identification purpose only