DLK Advisory Limited Activation Group (9919.HK) Announces 2026 Interim Results with Revenue of approx. RMB 287 million; Client Portfolio Diversification Achieves Substantial Breakthrough; Healthy Cash Flow Position

【Immediate Release】 –24 August 2026

Activation Group Holdings Limited

(Stock code: 9919.HK)

Announces 2026 Interim Results with
Revenue of approx. RMB 287 million

Client Portfolio Diversification Achieves Substantial Breakthrough;

Healthy Cash Flow Position;

Maintains Track Record of Consecutive Dividend Payouts since Listing

(24 August 2026 – Hong Kong) Activation Group Holdings Limited (“Activation Group” or the “Company”, together with its subsidiaries, the “Group”; stock code: 9919.HK), a leading marketing group for pan-fashion brands in Greater China, is pleased to announce its interim results for the six months ended 30 June 2026 (the “Period” or “1H2026”).

Leveraging its resilient business model and longstanding, deep-rooted relationships with leading global brands, the Group further strengthened its industry-leading position during the Period. The Group remained the largest experiential marketing services provider for premium and luxury brands in Greater China. According to China Insights Industry Consultancy Limited, the Group’s market share reached 13.9% in 2025. Over the years, the Group has accumulated more than 550 world-renowned brand clients, including: (i) renowned premium fashion brands such as CARTIER, CHANEL, DIOR, LOUIS VUITTON, PRADA and VAN CLEEF & ARPELS; (ii) renowned premium automotive brands such as LAND ROVER and BMW; and (iii) premium sportswear such as ADIDAS, NIKE and NEW BALANCE; beauty & skincare brands such as LANCÔME, LA PRAIRIE and HR, providing each client with tailor-made, one-stop integrated marketing solutions.

2026 First-Half Results Highlights

Against a backdrop of ongoing volatility in the macroeconomic and consumer markets, the Group’s business resilience was fully demonstrated, with its client base remaining highly stable. During the Period, the retention rate among the Group’s Top 25 clients reached 95%. The Group continued to maintain long-term and in-depth cooperation with leading international luxury brands, premium fashion, beauty & skincare brands, sportswear brands and premium Chinese brands, further demonstrating strong client stickiness and the irreplaceable value of its one-stop integrated marketing services.

Supported by its robust client base, the Group’s financial performance improved progressively, while profit quality remained stable. In 1H2026, the Group recorded revenue of approximately RMB287 million, representing a year-on-year decrease of 8.1%; overall gross profit margin remained healthy at 32.0%; net profit was approximately RMB 25.18 million (1H2025: approximately RMB 35.14 million).

The Group maintains a sound cash flow and financial structure. As of June 30, 2026, cash and cash equivalents amounted to approximately RMB298 million, remaining at the same level as the end of 2025. The Board has resolved to declare an interim dividend of HK1.8 cents per share, representing dividend payout ratio of approximately 50%. Since its listing in 2020, the Group has paid dividends for six consecutive years. The Group continues to return value to shareholders across market cycles while retaining sufficient financial resources to support business expansion.

Building on its stable client base, the Group achieved a major breakthrough in optimising its client mix, with emerging sectors becoming key growth drivers. During the Period, revenue from the sportswear sector increased by more than 50% year-on-year, while revenue from the beauty & skincare sector increased significantly by more than 150% year-on-year. These results demonstrate the successful transformation and diversification of the Group’s business mix beyond its traditional categories.

In terms of business segment, experiential marketing remained the Group’s core business, generating revenue of approximately RMB220 million during the Period, accounting for 76.9% of total revenue. Its gross profit margin was 31.4%, overall pricing power remained stable. The digital and communication business recorded revenue of approximately RMB65.31 million, representing 22.8% of total revenue, with a gross profit margin of 33.9%, down 5.2 percentage points from the same period in 2025, mainly due to intensified industry competition, client and project mix changes, and other factors. The Group is addressing these pressures through business portfolio optimisation, technology and AI‑driven efficiency enhancements. The IP business segment recorded revenue of approximately RMB 1.0 million, with a gross profit margin of 47.2%.

Business Review

Collaborating with Leading Brands to Deliver Flagship Projects and Amplify Interactions through Online and Offline Integration

During the Period, the Group continued to work closely with leading international luxury and premium brands, delivering a number of exclusive experience marketing projects targeting high-value Very Important Clients (“VICs”). According to a Bain & Company industry report, the top 2% of VICs in the global luxury market contribute approximately 45% of industry sales. Demand for exclusive experience marketing among this client segment remained strong in the first half of 2026. In 1H2026, the Group’s representative projects included:the LOUIS VUITTON Mythica High Jewellery Exhibition and Gala Dinner, the DIOR Suzhou Villa dinner, MIU MIU “Tales and Tellers” event in Shanghai, the ROLEX exhibition opening ceremony and gala dinner, and a large-scale event for VAN CLEEF & ARPELS in Hong Kong. These projects covered a broad range of categories, including high jewellery, watches, leather goods and apparels.

The Group’s one-stop online and offline marketing capabilities continued to be recognized. Taking the LOUIS VUITTON “Visionary Journeys” exhibition as an example, through a combination of immersive offline experiences and viral marketing on online social media platforms, data released by the Jing’an District People’s Government of Shanghai showed that by the end of June 2026, the total number of online interactions exceeded 30 billion. This “offline experience × online viral marketing” model achieves multi-cycle dissemination of a single event, effectively amplifying the return on marketing investment.

Client Mix Achieves Diversified Breakthrough, with Sportswear and Beauty & Skincare Categories Recording Rapid Growth

A key development during the Period was the continued expansion of the Group’s client base into the sportswear, beauty & skincare sectors. The Group established or deepened cooperation with leading sportswear brands, including ADIDAS, NIKE, NEW BALANCE and DESCENTE. Revenue from this sector increased by more than 50% year-on-year. Beauty & skincare clients included international brands such as LANCÔME, LA PRAIRIE and HR. Revenue from this sector increased by more than 150% year-on-year.

The expansion into these new categories enables the Group to participate in a wider range of consumer scenarios and creates greater synergies between its experiential marketing and digital marketing businesses. The Group’s ability to serve both established luxury brands and fast-growing sportswear, beauty & skincare brands reflects the flexibility and adaptability of its creative, content and execution capabilities.

Enhanced Regional Service Capabilities with Revenue from Hong Kong, Macau and Singapore Increased by 209.9%

The Group’s regional business covering Hong Kong and Singapore continued to develop during the Period, recording revenue of approximately RMB29.40 million, representing a year-on-year increase of 209.9%. Its contribution to total revenue increased from 3.0% in the same period last year to 10.2%. The Group established an office in Singapore in 2024 and has built its own local team to capture opportunities in emerging markets and replicate its successful Greater China experience. Hong Kong and Singapore provide the Group with platforms to serve international and Asia-Pacific brand clients, while enabling it to bring its experience in premium brand experience marketing and digital marketing to a broader range of markets.

Management Strategy and Outlook

As a marketing services provider, the Group’s revenue is directly affected by the marketing budgets of brand clients. Marketing budget recovery generally lags behind the recovery of end-consumer spending. As industry budgets gradually return to normal levels, the Group expects to capture opportunities arising from the industry recovery.

Mr. Lau Kam Yiu, Steve, Joint-Chairman and Chief Executive Officer of Activation Group, commented, “The first half of 2026 demonstrated the resilience of our client relationships, while the adjustment of our business mix achieved encouraging progress. Our clients continued to choose Activation Group as their partner, and we successfully expanded into the emerging sportswear, beauty & skincare sectors, which offer significant growth opportunities. Our cooperation with brands including ADIDAS, NIKE, DESCENTE, LANCÔME and LA PRAIRIE demonstrates the adaptability of the Group’s integrated service solutions. Looking ahead, we will continue to integrate our online and offline service capabilities. On the one hand, we will deepen cooperation with clients and strengthen our market position in premium fashion experiential marketing. At the same time, we will expand our client base among sportswear, beauty & skincare brands and premium Chinese brands, while capturing business opportunities in overseas markets. We will strengthen cost control, remain committed to rewarding shareholders through cash dividends and strive to achieve sustainable long-term development.”

– End –

About Activation Group Holdings Limited

Activation Group Holdings Limited (9919.HK) is a leading marketing Group for pan-fashion brands in Greater China, focusing on providing i) experiential marketing services, ii) digital and communication services, and iii) IP development in the Greater China region. The Group served more than 550 world-renowned branded clients, including (i) renowned premium fashion brands, (ii) renowned premium automotive brands; and (iii) premium sportswear, beauty & skincare brands. According to the information from China Insights Industry Consultancy Limited, the Group remains the number one experiential marketing service provider for premium and luxury brands in Greater China in 2025, with a market share of 13.9%.

This press release is issued by DLK Advisory Limited on behalf of Activation Group Holdings Limited

For further information, please contact:

DLK Advisory 金通策略

Email: pr@dlkadvisory.com

Tel: +852 2857 7101