Store Expansion - As of September 30, 2023, the total number of "Lukfook" shops reached 3,068, an increase of 130 from the previous period[8]. - Self-operated shops in Mainland China decreased by 2 to 67, while Hong Kong saw an increase of 5 to 50[8]. - The number of licensed shops in Mainland China increased by 123 to 2,916, contributing to a total of 2,925 licensed shops globally[8]. - The company reported a year-on-year increase of 184 shops globally, with a total of 3,289 shops as of September 30, 2023[8]. - The number of shops in Tier I cities remained stable at 880, while Tier II and III cities saw a net increase of 20 shops[12]. - The Group added a net of 184 shops globally, bringing the total to 3,289 shops, including 3,068 "Lukfook" shops[46]. - The Group operated a total of 50 self-operated shops in Hong Kong as of September 30, 2023, up from 44 shops in 2022[57]. - The Group expanded its overseas presence, operating 19 overseas shops as of September 30, 2023, compared to 13 shops in 2022[59]. - The annual target for net addition of "Lukfook" shops in Mainland is 300 shops, focusing on fourth and fifth-tier cities, with an additional target of 50 new licensed shops for new brands[100]. Financial Performance - Revenue for the six months ended September 30, 2023, increased by 34.3% to HK$7,486 million compared to the same period last year[15]. - Segment profit for Hong Kong, Macau, and Overseas reached HK$4,830 million, reflecting a year-on-year increase of 66.6%[15]. - Overall retail sales performance showed a significant increase of 56% year-on-year, with same-store sales (SSS) rising by 44%[37]. - Gold and Platinum product sales increased by 55% year-on-year, with a gross profit margin of 19.1%, up by 3.8 percentage points[36]. - Fixed Price Jewellery sales surged by 59% year-on-year, with a gross profit margin of 35.9%, an increase of 5.8 percentage points[36]. - Total revenue increased by 34.3% to HK$7,486 million for the six months ended 30 September 2023, compared to HK$5,573 million in the same period last year[39]. - Gross profit rose by 42.9% to HK$2,081 million, with a gross margin improvement of 1.7 percentage points to 27.8%[44]. - Operating profit increased by 39.3% to HK$1,140 million, resulting in an operating margin of 15.2%, up from 14.7%[44]. - Profit attributable to equity holders surged by 43.3% to HK$943 million, marking the second-highest interim performance in the company's history[44]. - Basic earnings per share rose by 43.8% to HK$1.61, compared to HK$1.12 in the previous year[44]. - Total comprehensive income for the period was HK$552,781, compared to a loss of HK$45,695 in the same period last year[160]. Market Performance - Revenue from Mainland retailing was HK$2,656 million, showing a slight decline of 0.7% year-on-year[15]. - The Group's retailing revenue increased by 55.7% to HK$6,029,948,000, accounting for 80.5% of total revenue, driven by improved tourist traffic and gold sales[49]. - Wholesaling revenue declined by 21.4% to HK$910,558,000, representing 12.2% of total revenue, due to sluggish demand for diamond products in Mainland China[49]. - Licensing income remained flat at HK$545,525,000, accounting for 7.3% of total revenue, with a segment profit margin of 71.8%[49]. - Retail revenue in the Hong Kong market increased by 57.4% to HK$3,103,413,000, returning to pre-pandemic levels[57]. - Revenue from the Macau market surged by 142.3% to HK$1,349,753,000, exceeding pre-pandemic levels[58]. - The overall same-store sales (SSS) in these markets was +49.3%, with gold and platinum products at +49.1% and fixed price jewellery products at +50.0%[63]. Operational Highlights - The operational highlights indicate a strong performance in the licensing segment, with a notable increase in the number of licensed shops[12]. - Future outlook includes continued expansion in both self-operated and licensed shop formats, aiming for a robust growth trajectory in the coming quarters[12]. - The Group's overall same-store sales (SSS) maintained double-digit growth, with over 50% growth in SSS during October and the first three weeks of November 2023 in Hong Kong and Macau[94]. - The Group aims to enhance operational efficiency through supply chain management revamps, full automation, and big data analytics[104]. Sustainability and Corporate Governance - The Group signed its first sustainability-linked loan of HK$326 million with DBS Bank, with interest rates tied to sustainability performance against specific KPIs[108]. - The Group aims to reduce total energy consumption intensity and greenhouse gas emissions intensity through environmentally friendly practices[108]. - The Group has committed to a long-term goal of carbon neutrality to enhance its contribution to environmental protection[108]. - The Group received multiple ESG-related awards, including recognition as a leading brand in the gold jewelry retail industry[107]. - The Group has been awarded the "Happy Company" honor for ten consecutive years, reflecting its commitment to corporate governance and social responsibility[107]. - The company has maintained good corporate governance practices and procedures, focusing on risk management and internal controls[126]. Financial Position and Risks - Cash and bank balances decreased by 4.0% to HK$2,254 million compared to HK$2,348 million at the end of March 2023[40]. - The debt-to-equity ratio increased to 28.3% from 22.2%[81]. - The Group's liquidity risk remains stable with no material changes in contractual undiscounted cash outflows for financial liabilities[190]. - The Group is exposed to various financial risks, including foreign exchange risks, cash flow and fair value interest rate risks, credit risk, liquidity risk, and commodity price risk[188]. - The Group's financial risk management information and disclosures required in the annual financial statements are not included in the interim financial information[188]. Shareholder Information - The Group's total interest in shares is 263,209,777, representing 44.83% of the total shares[113]. - The Group's sustainability efforts are recognized as a key factor for long-term success, integrating ESG principles into business planning and operations[107]. - The Trust indirectly controls over one-third of the voting power of Luk Fook (Control) Limited, indicating significant influence over corporate decisions[119]. - The company has provided a shareholder loan to China Gold Silver Group Company Limited as general working capital, with financial assistance exceeding 8% of the asset ratios defined in Rule 14.07(1) of the Listing Rules as of September 30, 2023[128].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 (於百慕達註冊成立之有限公司) (Incorporated in Bermuda with Limited Liability) Stock Code 股份代號 : ���� 截至2023年9月30日止六個月之 中期業績公告 | --- | --- | |-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | 摘 要 | | • | 收入達 75 億港元，較去年同期上升 34.3% ，主要受惠 ...

Shop Expansion and Network - Total number of shops increased to 2,938 as of March 31, 2023, representing a year-on-year increase of 219 shops or 8.0%[8] - The number of self-operated shops in Mainland China decreased by 8 to 69, while licensed shops increased by 224 to 2,793[8] - The company plans to expand its distribution network, with a focus on Tier I and Tier II cities in Mainland China[9] - The Group added a net total of 296 "Lukfook" shops worldwide during the year, including 224 licensed shops in Mainland China[59] - The Group plans to net add 350 shops in Mainland China and 10 shops in Hong Kong and overseas in the upcoming year[60] - The Group had a total of 3,029 shops in Mainland as of 31 March 2023, an increase from 2,736 shops in 2022[88] Financial Performance - Revenue for the year was HK$11,978 million, reflecting a year-on-year growth of 2.0%[25] - Profit for the year decreased by 7.7% to HK$1,285 million, down from HK$1,392 million in the prior year[50] - Basic earnings per share decreased to HK$2.19, a decline of 7.6% from HK$2.37 in the previous year[50] - The Group's total revenue for FY2023 increased by 2.0% to HK$11,977,844,000 compared to HK$11,737,803,000 in FY2022[59] - Operating profit fell by 4.1% to HK$1,576 million, compared to HK$1,643 million in FY2021/22[50] - The overall segment profit for the mainland market decreased by 26.6% to HK$1,147 million, indicating challenges in profitability[25] Profit Margins and Earnings - Segment profit margin for Hong Kong, Macau, and overseas markets was 55.0%, while the mainland segment profit margin was 45.0%[25] - Gross profit decreased slightly to HK$3,230 million, down 0.1% from HK$3,234 million in the previous year[50] - Gross margin decreased to 27.0%, down 0.6 percentage points from 27.6%[50] - Operating margin decreased to 13.2%, down 0.8 percentage points from 14.0%[50] - Net margin decreased to 10.7%, down 1.2 percentage points from 11.9%[50] Sales Performance - Same store sales growth (SSSG) for overall sales was +18% for 2023, compared to +50% in 2022[49] - Same-store sales growth (SSSG) in Hong Kong and Macau was approximately +70.0% from April to June 2023, indicating a strong recovery[60] - Overall same-store sales growth (SSSG) was +24.4%, with Hong Kong and Macau at +34.0% and Mainland at -16.9%[76] - Retail revenue in Hong Kong increased by 57.9% to HK$4,239,220,000, driven by a significant rise in Mainland tourist arrivals[81] Product Performance - Gold and platinum sales rose by 24.6% to HK$6,887,000,000, with a gross profit margin of 17.4%[75] - Fixed price jewellery sales decreased by 18.5% to HK$4,038,000,000, with a gross profit margin of 30.3%[75] - Sales of gold and platinum products increased by 24.6% to HK$6,886,227,000, accounting for 63.0% of overall sales[76] - Segment profit from retailing rose by 88.5% to HK$681,982,000, with a profit margin of 7.8%[70] E-commerce and Digital Strategy - Revenue from e-commerce business in Mainland increased by 7.5% to HK$1,457,853,000, accounting for 63.2% of retailing revenue in Mainland[93] - The Group aims for a 10% sales growth in its e-commerce business in the upcoming year, enhancing cooperation with various e-commerce platforms[106] Corporate Governance and Structure - The Board of Directors consists of five executive directors, three non-executive directors, and four independent non-executive directors, ensuring a balance of skills and experiences relevant to the jewellery industry[172] - The Company is committed to maintaining high corporate governance standards, emphasizing integrity, transparency, accountability, and independence to enhance shareholder value[163] - The Company has complied with all code provisions of the Corporate Governance Code during the year under review, with a noted deviation regarding the separation of the roles of chairman and chief executive officer[167][170] Environmental and Social Responsibility - A long-term carbon reduction goal will be established to enhance the Group's contribution to environmental protection[61] - The Group aims to enhance operational efficiency through supply chain management improvements and automation[61] - The Group is committed to establishing long-term carbon neutrality goals to contribute to environmental protection[109] Marketing and Branding Strategies - The Group's marketing strategies target the middle-class, wedding, and Generation Z markets, focusing on quality and detail in product offerings[119] - The Group actively participated in wedding expos across major cities to increase brand exposure and build an innovative brand image[127] - The Group launched the sub-brand "Love LUKFOOK JEWELLERY" in May 2023, targeting the affordable luxury market to attract young consumers seeking quality lifestyles[109] Employee Engagement and Culture - The number of employees remained stable at 6,000 as of March 31, 2023, with regular reviews of remuneration policies to ensure fair compensation[100] - The Group emphasizes a caring culture for employees, fostering a harmonious working atmosphere to enhance their sense of belonging[113]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 (於百慕達註冊成立之有限公司) (Incorporated in Bermuda with Limited Liability) Stock Code 股份代號 : ���� 截至2023年3月31日止年度全年業績公告 | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|---------------------- ...

Revenue and Profitability - Total revenue for the period was HK$5,573 million, representing a year-on-year increase of 17.4%[25] - Revenue for the six months ended September 30, 2022, was HK$5,573 million, a decrease of 0.3% compared to HK$5,591 million in the same period of 2021[38] - Operating profit increased by 4.9% to HK$818 million, compared to HK$780 million in the previous year[38] - Profit for the period attributable to equity holders was HK$658 million, reflecting a 0.6% increase from HK$654 million in the prior year[38] - Basic earnings per share rose to HK$1.12, up 0.9% from HK$1.11 in the same period last year[38] - The company reported a segment profit margin of 45.5% for the overall business, indicating stable profitability despite market challenges[25] - The segment profit for the mainland retailing business was HK$597 million, down 16.6% year-on-year[25] - Overall revenue decreased by 0.3% to HK$5,573,000,000, while segment profit increased by 2.5% to HK$856,000,000, resulting in a profit margin of 15.4%[48] Market Performance - Retail sales overall showed a year-on-year increase of 11%, with Gold & Platinum sales rising by 24%[37] - Retail revenue in the Hong Kong market increased by 51.6% to HK$1,971,884,000[56] - Revenue from the Macau market decreased by 37.8% to HK$556,995,000 due to reduced tourist traffic[57] - Retail revenue from Hong Kong, Macau, and overseas markets increased by 18.2% to HK$2,833,228,000, accounting for 50.8% of the Group's total revenue[60] - Retail revenue from the Mainland market decreased by 5.9% to HK$1,038,528,000, accounting for 18.7% of the Group's total[63] - Overall same-store sales growth (SSSG) was +19.0%, with gold and platinum products at +35.0% and fixed price jewellery at -14.4%[51] - The overall same-store sales growth (SSSG) in these markets was +26.1%, with gold and platinum products showing +46.0%[60] Shop Expansion and Distribution - The number of self-operated shops in Mainland China increased by 121 to 2,690, compared to 2,569 in the previous period[5] - The total number of licensed shops reached 2,695, up from 2,574, marking an increase of 121[5] - The overall number of shops worldwide increased by 157 to 2,966, compared to 2,809 in the previous year[5] - The company plans to expand its distribution network, with a focus on increasing the number of shops in Tier I and Tier II cities[8] - The Group has adjusted its net addition target to 350 new shops for the current financial year, focusing on fourth- and fifth-tier cities in mainland China[97] Financial Position and Liquidity - Cash and bank balances decreased by 30.7% to HK$2,420 million compared to HK$3,492 million as of March 31, 2022[39] - The debt-to-equity ratio improved to 22.1%, down 12.2 percentage points from 34.3%[39] - Current ratio increased to 4.8, up from 3.3, indicating improved liquidity[39] - The Group's cash and bank balances as of September 30, 2022, amounted to HK$2,420,000,000, down from HK$3,492,000,000 as of March 31, 2022[77] - The Group's net cash increased to HK$1,897,000,000 from HK$1,537,000,000 as of March 31, 2022[77] Segment Performance - Retailing revenue increased by 10.6% to HK$3,871,756,000, accounting for 69.5% of total revenue, with segment profit rising 34.6% to HK$279,606,000 and a profit margin of 7.2%[48] - Wholesaling revenue declined by 23.9% to HK$1,158,626,000, representing 20.8% of total revenue, with segment profit decreasing 14.4% to HK$185,419,000 and a profit margin of 16.0%[48] - Licensing income slightly decreased by 4.6% to HK$542,802,000, accounting for 9.7% of total revenue, with segment profit margin at 72.1%[48] E-commerce and Digital Strategy - E-commerce revenue in Mainland increased by 15.3% year-on-year, contributing 63.2% to Mainland retail revenue[72] - The average selling price in the e-commerce business rose by 6.7% year-on-year to RMB 1,600[72] - E-commerce revenue is expected to increase by 20% in the current financial year, driven by strengthened cooperation with various e-commerce platforms and the establishment of its own platform[97] Corporate Governance and Shareholding - The Company has complied with the Corporate Governance Code throughout the six months ended September 30, 2022, with one noted deviation regarding the separation of roles of chairman and CEO[114] - Mr. WONG Wai Sheung holds a total interest of 255,695,514 shares, representing 43.55% of the company's shares[104] - The company has a significant concentration of ownership, with major shareholders controlling over 40% of the voting power[106] - The overall shareholding structure reflects a mix of direct and indirect interests, highlighting the complexity of ownership within the company[106] Future Outlook and Strategy - The Group's revenue growth target for FY2023 is set at 20%[72] - The Group remains optimistic about mid- to long-term business prospects in mainland China despite current economic challenges[96] - The Group aims to enhance its brand image and product quality while targeting middle-class, wedding, and kids markets through innovative marketing strategies[99] - The Group plans to improve operational efficiency by revamping supply chain management and implementing automation and big data analytics[99]

Store Expansion - Total number of shops increased to 2,809 as of March 31, 2022, up by 443 from 2,366 in the previous year[1] - Licensed shops in Mainland China rose to 2,574, an increase of 436 from 2,138 year-on-year[1] - The Group added a net total of 435 "Lukfook" shops worldwide, bringing the total to 2,809 shops as of March 31, 2022[35] - The number of licensed "Lukfook" shops increased by 434 to a total of 2,569, while self-operated shops remained unchanged at 77[116] - The Group operated a total of 2,736 shops as of March 31, 2022, compared to 2,294 shops in the previous year[117] - The Group plans to net add 500 "Lukfook" shops in the Mainland, primarily in fourth- and fifth-tier cities, and about 50 new brand stores[42] Financial Performance - Revenue for FY2021/22 reached HK$11,738 million, representing a year-on-year increase of 32.5% compared to HK$8,861 million in FY2020/21[22] - Profit attributable to equity holders rose by 36.9% to HK$1,392 million compared to HK$1,017 million in FY2020/21[22] - Basic earnings per share increased by 37.0% to HK$2.37 from HK$1.73 in the previous year[22] - The Group's total revenue for FY2022 increased by 32.5% to HK$11,737,803,000 compared to HK$8,861,335,000 in FY2021[34] - Operating profit increased by 32.1% to HK$1,643 million from HK$1,244 million year-on-year[22] - Segment profit for Mainland China was HK$1,563 million, with a profit margin of 23.3%[8] Retail Performance - Retail segment revenue accounted for 55.1% of total revenue, with a year-on-year increase of 49.6%[11] - Overall retail sales performance showed a significant recovery with a year-on-year increase of 50%[18] - Retail revenue surged by 49.6% year-on-year to HK$7,408 million, accounting for 63.1% of total revenue[69] - Segment profit from retailing increased by 84.9% to HK$362 million, with a segment profit margin of 4.9%[69] - Retail revenue from Hong Kong, Macau, and overseas markets increased by 50.4% to HK$4,880,879,000, accounting for 41.6% of the Group's total revenue[97] - Retail revenue in Mainland increased by 47.9% to HK$2,527 million, accounting for 21.5% of total revenue[108] E-commerce and Licensing - Revenue from the Mainland e-commerce business increased by 60.2% to HK$1,355,791,000, accounting for 53.7% of retail revenue in Mainland[123] - Licensing income surged by 32.4% to HK$1,253,178,000, maintaining a 10.7% share of total revenue[71] - Segment profit from licensing increased by 34.2% to HK$964,435,000, accounting for 55.1% of total segment profit[73] - Licensing income in Mainland grew by 36.5% to HK$1,229 million, contributing 10.5% of total revenue, with segment profit up 39.6% to HK$939 million[110] Inventory and Debt Management - The company's inventory increased by 19.8% to HK$8,769 million from HK$7,322 million[23] - Bank borrowings and gold loans surged by 79.5% to HK$1,955 million compared to HK$1,089 million in the previous year[23] - The debt-to-equity ratio increased to 34.3%, up 6.2 percentage points from 28.1%[23] - The Group's cash and bank balances as of March 31, 2022, amounted to HK$3,492,000,000, with net cash of HK$1,537,000,000[132] Strategic Initiatives - A new three-year corporate strategy focuses on Mainland Market Expansion, Branding, and Operational Efficiency to foster future business growth[41] - The Group aims to improve operational efficiency through supply chain management revamps and the implementation of automation and data analytics systems[50] - The Group plans to enhance brand image and product quality while exploring cross-industry collaborations to improve sales channels[51] - The Group targets to achieve double-digit revenue growth in the coming year and aims for record high profit within three years[40] Product Development and Market Trends - The Group launched new sub-brands and product lines, including "Lukfook Joaillerie" and "Heirloom Fortune" targeting high-end markets[114] - The "DiaPure" Collection features diamonds selected based on eight strict standards, catering to middle-class customers' preference for quality and detail[184] - The "Heirloom Fortune" Collection pays tribute to traditional culture, featuring exquisite gold jewelry crafted with traditional skills, appealing to the growing interest in Chinese culture among the middle-class[186] - The Group introduced the "Share Love in Wedding 5201314" Collection, which symbolizes "I love you for a lifetime"[191] - Baby accessories, particularly gold longevity locks, were introduced to cater to market demand, allowing for personalized designs that express blessings for health and safety[196] Environmental Commitment - The Group recognizes the importance of environmental protection and aims to reduce the carbon footprint of its products[49] - The Group aims to implement measures to reduce carbon footprint and set long-term carbon reduction goals[51] - The Group is implementing measures to reduce product carbon footprints and set long-term carbon reduction goals to enhance its contribution to environmental protection[170]

Shop Expansion - Total number of shops increased to 2,366, up by 246 from the previous year[1] - The Group added a net total of 222 "Lukfook" shops worldwide, including 224 net additions in Mainland China[27] - The total number of "Lukfook" shops in Mainland increased to 2,212 as of March 31, 2021, up from 1,988 in 2020, with a net increase of 224 shops[97] - The Group plans to net add 350 shops in Mainland China, primarily in fourth- and fifth-tier cities, in the upcoming financial year[32] - The Group aims to open not less than 300 "Lukfook" shops in Mainland China in the coming year, focusing on fourth- and fifth-tier cities[146] Revenue Performance - Revenue from Mainland market reached HK$5,310 million, a year-on-year increase of 7.0%[8] - Total revenue for FY2021 decreased by 21.1% to HK$8,861 million compared to HK$11,234 million in FY2020[26] - The Group recorded a revenue drop of 21.1% to HK$8,861 million for the year under review, compared to HK$11,233 million in 2020[48] - The Group's overall revenue decreased by 43.4% to HK$3,551,000,000, with a segment profit margin of 2.1%[71] - Retail revenue from Hong Kong, Macau, and overseas markets decreased by 46.8% to HK$3,245,173,000, accounting for 36.6% of the Group's total revenue[82] Profitability - Segment profit from Mainland market rose by 36.8% to HK$1,248 million, with a profit margin of 23.5%, up by 5.1 percentage points[8] - Profit attributable to equity holders increased by 17.4% to HK$1,017 million, up from HK$866 million in the previous year[26] - Operating profit increased by 7.6% to HK$1,244 million, with an operating margin of 14.0%, up from 10.3% in the previous year[48] - Net profit rose by 17.5% to HK$1,019,134,000, resulting in a net profit margin of 11.5%, compared to 7.7% in 2020[49] Dividend Information - The total dividend for FY2021 amounted to HK$1.50 per share, a 50.0% increase from HK$1.00 per share in FY2020[26] - The proposed dividend per share is HK$1.00, with a dividend payout ratio of 86.6%[46] - The dividend payout ratio increased to 86.6%, up from 67.8% in the previous year[26] Market Performance - Overall retail sales performance declined by 37% year-on-year, with same store sales growth (SSSG) at -40%[12] - Same store sales growth (SSSG) for Hong Kong and Macau was approximately +120%, while the Mainland market saw a growth of around +50%[31] - Same store sales growth (SSSG) for the Hong Kong and Macau market was approximately +120% from April to mid-June 2021, while the Mainland market saw a SSSG of around +50%[132] - The overall same-store sales growth (SSSG) was -39.9%, with Hong Kong and Macau at -47.1% and Mainland at -4.7%[64] E-commerce and Product Development - The Group aims for a 20% sales growth in its e-commerce business for the upcoming year, alongside the establishment of its own e-commerce platform[35] - E-commerce revenue from Mainland increased by 34.2% to HK$846,112,000, representing 49.5% of the retail revenue in Mainland[102] - A new product line, "Lukfook Joaillerie," targeting the high-end jewellery market, was launched with 3 shop-in-shops opened in Macau and Mainland[39] - The introduction of the DIY Ordering Service System in Mainland will be expanded to Hong Kong, Macau, and overseas, allowing customers to create personalized diamond products[147] Financial Position - Cash and bank balances increased by 30.7% to HK$3,546 million, compared to HK$2,714 million in FY2020[15] - Net cash rose by 104.5% to HK$2,457 million, up from HK$1,201 million in the previous year[15] - The debt-to-equity ratio improved to 28.1% in 2021 from 33.9% in 2020, with total liabilities decreasing to HK$3,188,000,000[111] - The Group's total inventory decreased to HK$7,322,000,000 from HK$7,533,000,000 in 2020, while average inventory turnover days increased to 451 days from 401 days[118] Marketing and Brand Strategy - The Group's strategy includes strengthening supply chain management and focusing on the middle-class market, wedding couples, and kids[39] - The Group aims to penetrate the middle-class market by sponsoring marathons in cities like Hong Kong, Beijing, and Guangzhou, reaching over 624,500 finishers to enhance brand recognition[162] - Collaborated with nearly 120 KOLs across major platforms, achieving record online exposure and increasing brand awareness among young consumers[185] - The "Love for More, Bling for More" product launch event in Shanghai garnered over 10 million views through live streaming on official platforms[185] Employee and Operational Efficiency - The number of employees decreased to 5,900 from 6,500 in 2020, reflecting a review of remuneration policies to ensure fair compensation[127] - The Group aims to improve factory productivity and inventory turnover through full automation and big data management in supply chain management[143] - Strategic partnerships with suppliers and streamlined logistics are expected to enhance operational efficiency and business development[143]