LOS ANGELES, January 9, 2023 – PLBY Group, Inc. (NASDAQ: PLBY) (“PLBY Group”), a leading pleasure and leisure lifestyle company and owner of Playboy, one of the most recognizable and iconic brands, and Charactopia Licensing Limited (“Charactopia”), a Fung Retailing brand management company, representing many global brands in China, announced today that they have entered into a shareholders agreement to form “Playboy China”, a joint venture that will jointly own and operate the Playboy branded consumer products business in parts of the Greater China market, including mainland China.

The Playboy China joint venture will focus on reinvigorating all aspects of the China-market Playboy apparel business, including online and offline retail strategies, product design and assortment, and brand marketing to its multi-generational audience. The Shanghai-based joint venture team will look to build on Playboy’s current roster of licensees and online storefronts by adding new partners and growing through new product categories yet to be developed in China with the Playboy brand.

The joint venture will be governed by a Board of Directors that includes representatives from both Playboy and Charactopia with Playboy retaining majority ownership of the Playboy China joint venture, which is valued by the partners at US$250 million. The Playboy China joint venture team will work closely with the Playboy apparel team in the U.S. to ensure a unified presentation and positioning for the Playboy brand globally.

“The Playboy China joint venture continues PLBY’s evolution from a traditional licensing model to a selectively owned and operated business model to maximize the value of the Playboy brand across our businesses,” said Ben Kohn, CEO of PLBY Group. “Through this joint venture, the Playboy business in China will benefit from a best-in-class operating team with Charactopia, and from the relationship with the Fung Group.”

After more than 30 years as a licensed brand in China, Playboy has become a major men’s and women’s apparel and accessories brand in China.

“With the foundation Playboy has built in China through licensing, combined with its brand activation and product design connecting Playboy with a new generation of consumers around the world, now is the right time for an in-country operations team here in China,” said Brian Lee, Executive Director of Fung Retailing. “With this new structure and our experienced on-the-ground operating team, the Playboy business is poised for accelerated growth across product and lifestyle categories in this key market.”

The closing of the formation of the Playboy China joint venture pursuant to the shareholders agreement is subject to the execution of additional definitive documentation and the satisfaction of other conditions precedent. PLBY Group has obtained consent from its senior secured lenders and holders of PLBY Group’s Series A Preferred Stock for members of the PLBY Group to enter into the shareholders agreement and other related documentation and to consummate the transactions contemplated thereby, as applicable. There is no guarantee that members of the PLBY Group will be able to consummate the formation of the joint venture, or related transactions, or that the joint venture will be successful. PLBY Group expects to complete the formation, and begin operations of, the joint venture in the first quarter of 2023.