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Alpha Returns Group plc (ARGP)

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Friday 05 February, 2016

Alpha Returns Group plc

Update re Investment

Update re Investment

Alpha Returns Group plc
(the "Company" or "Alpha Returns")

5 February 2016

Update re Oriental Ventures Limited ("Oriental Ventures") / Shenzhen Maxlife Catering Management Limited ("Maxlife")

Alpha Returns, the AIM traded investing company focussing on investments in high-growth Asian economies, is pleased to provide the following update on its 30 per cent. conditional investment in Oriental Ventures, a BVI registered special purpose vehicle formed to acquire Maxlife, originally announced on 31 March 2014.

Maxlife has transformed its core business from a start-up coffee chain into operations of a subscription based e-commerce platform targeting mid-to-high end consumers in the PRC. Members subscribe to a 24-month contract and monthly subscription fees of RMB1,300 to RMB3,250 are collected through an auto-debit arrangement. Maxlife gives a 200% money-back guarantee to all members against any counterfeit goods purchased from Maxlife's e-commerce platform. Maxlife has been trading profitably since September 2015.

From September to December 2015, Maxlife made unaudited pre-tax profit of RMB 1.1 million (c. £119,000) on revenue of RMB 10.6 million (c. £1,106,000). At 31 December 2015, it had cash and cash equivalents of RMB 6.9 million (c. £720,000) and net assets of RMB 3.2 million (c. £335,000). For the full year ended 31 December 2015, unaudited losses of RMB 1.2 million were made on revenue of RMB 11.1 million.

The directors of Alpha Returns have endorsed this change in business model by Maxlife, and the Company will continue with its investment in Oriental Ventures and Maxlife with completion of its 30 per cent. investment expected to take place before 31 March 2016. Consideration of HK$5,812,500 cash (then c. £451,000) was paid to the vendor of Oriental Ventures in April 2014 and balance consideration of 32,142,857 new ordinary shares in Alpha Returns (£193,000 at yesterday's closing price) is payable on completion.

The Company will update the market when further progress is made.

-ends-

For further information:

Alpha Returns Group plc  Christopher Neo
Executive Director
020 3286 6388
ZAI Corporate Finance Ltd (NOMAD) Peter Trevelyan Clark / Ivy Wang 020 7060 2220
Peterhouse Corporate Finance (Broker)  Duncan Vasey / Lucy Williams  020 7220 9797



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Alpha Returns Group plc via Globenewswire

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