Financial Performance - Revenue for the fiscal year ending December 31, 2024, decreased by approximately RMB 2.3 million or 7.3% to RMB 29.4 million compared to RMB 31.7 million for the previous year[19]. - Gross profit increased by approximately RMB 6.8 million or 121.4% to RMB 12.4 million for the fiscal year ending December 31, 2024, compared to RMB 5.6 million in the previous year, with a gross margin increase from approximately 17.5% to 42.4%[21]. - Loss before tax increased by approximately RMB 12.5 million to approximately RMB 52.0 million for the year ending December 31, 2024, compared to a loss of approximately RMB 39.5 million for the previous year[24]. - The group recorded a net loss of approximately RMB 52.0 million for the year ending December 31, 2024, compared to a net loss of approximately RMB 39.5 million for the year ending December 31, 2023[28]. - The company reported a net loss of RMB 51,964,000 for the year ended December 31, 2024, compared to a net loss of RMB 39,536,000 in the previous year, representing an increase in loss of approximately 31.5%[164]. - The total comprehensive income for the year was a loss of RMB 48,295,000, compared to a loss of RMB 36,184,000 in the previous year, reflecting a worsening of approximately 33.5%[162]. Assets and Liabilities - Total assets as of December 31, 2024, were RMB 73.8 million, a decrease from RMB 113.6 million in 2023[11]. - The company's total equity dropped significantly to RMB 33,896,000 from RMB 82,191,000, indicating a substantial decline in shareholder value[160]. - Current liabilities increased to RMB 10,569,000 from RMB 9,581,000, reflecting a rise in financial obligations[158]. - Total liabilities increased to RMB 39.9 million in 2024 from RMB 31.4 million in 2023[11]. - The current ratio decreased from 10.6 times as of December 31, 2023, to 5.7 times as of December 31, 2024[29]. - The capital debt ratio increased from 32.5% as of December 31, 2023, to approximately 86.2% as of December 31, 2024[29]. Cash Flow and Liquidity - Cash and bank balances totaled approximately RMB 1.0 million as of December 31, 2024, down from approximately RMB 2.0 million as of December 31, 2023[29]. - The company’s cash and cash equivalents decreased by RMB 1,030,000, down from RMB 7,763,000 in the previous year, indicating a reduction in liquidity[166]. - Operating cash flow for the year was RMB 3,186,000, a significant increase from RMB 210,000 in the previous year, indicating improved cash generation from operations[164]. Expenses - Cost of sales decreased by approximately RMB 9.2 million or 35.2% to RMB 16.9 million for the fiscal year ending December 31, 2024, from RMB 26.1 million in the previous year[20]. - Sales and distribution expenses increased by approximately RMB 1.5 million or 27.8% to approximately RMB 6.9 million for the year ending December 31, 2024, primarily due to increased marketing activities from more exhibitions held[22]. - Administrative expenses rose by approximately RMB 1.3 million or 6.5% to approximately RMB 19.9 million for the year ending December 31, 2024[23]. Market Conditions and Business Strategy - The company anticipates a challenging year in 2025 due to economic conditions in Hong Kong and China, impacting luxury watch and jewelry sales[14]. - The retail sales of jewelry, watches, and luxury gifts in Hong Kong decreased by approximately 14.5% compared to the previous year[14]. - The company aims to adapt its business and product mix to market demands, focusing on luxury watches and jewelry[14]. - The company plans to enhance its design and development capabilities by recruiting more talent and improving the design team's skills[14]. - The company will continue to seek new opportunities and remain prepared to capitalize on future market conditions[16]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, complying with the relevant listing rules[96]. - The independent non-executive directors have confirmed their independence according to the listing rules[79]. - The board is responsible for monitoring the company's financial performance and risk management strategies[103]. - The company has adopted the standard code for securities trading by directors, confirming compliance for the entire fiscal year[104]. - The board is committed to meeting at least four times a year to review financial performance and significant investments[100]. Audit and Compliance - The financial statements for the year ending December 31, 2024, were audited by a reputable accounting firm, with the term expiring at the upcoming annual general meeting[89]. - The independent auditor confirmed that the consolidated financial statements fairly present the group's financial position as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards[135]. - The independent auditor identified key audit matters including the assessment of expected credit loss provisions for trade receivables and inventory provisions[138]. Inventory and Trade Receivables - The group reported a total trade receivables value of RMB 65,317,000 with an expected credit loss provision of RMB 51,331,000 at the end of the reporting period[140]. - The group held inventory valued at RMB 26,629,000 at the end of the reporting period, with significant judgments applied to assess the net realizable value due to long-aged inventory from recent pandemic impacts[143]. - Trade receivables also fell to RMB 13,986,000 from RMB 21,440,000, suggesting a decrease in credit sales[158]. Risk Management - The company faces various financial risks, including liquidity risk, interest rate risk, and currency risk[47]. - The company has established a Guarantee Committee to monitor and restrict guarantees to non-group companies, with no incidents reported as of the report date[117]. - The board is responsible for evaluating and maintaining effective risk management and internal control systems, which were deemed effective and adequate as of December 31, 2024[121]. Shareholder Information - The largest customer accounts for 17% of the group's revenue, while the top five customers together account for 58%[56]. - The largest supplier accounts for 19% of the group's procurement, with the top five suppliers together accounting for 59%[56]. - The company has maintained the required public float since its listing on January 30, 2015[52]. - The company has not provided any tax relief to shareholders holding its shares[54].

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，並明確表示概不會就本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Luxxu Group Limited 勵時集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1327） 補充公告– 有關截至二零二四年十二月三十一日止年度之年度業績公告 茲提述勵時集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）於二零二五 年三月二十八日刊發之截至二零二四年十二月三十一日止年度之年度業績公告（「年 度業績公告」）。除文義另有所指外，本公告所用詞彙與年度業績公告所界定者具 有相同涵義。 除年度業績公告所披露之資料外，本公司董事會（「董事會」）謹此向本公司股東及 有意投資者提供以下補充資料： 企業管治常規守則 本公司致力於維持高標準的企業管治，並以開明及開放的理念引導其發展及保障 其股東的權益。董事會由兩名執行董事及三名獨立非執行董事組成。董事會已檢 討本公司的企業管治常規，並信納於截至二零二四年十二月三十一日止整個年度內， 本公司已採納並遵守上市規則附錄十四所載企業管治守則 ...

Luxxu Group Limited 勵時集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1327） 截至二零二四年十二月三十一日止年度的 年度業績公告 財務摘要 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，並明確表示概不會就本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 勵時集團有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司及其附屬 公司（統稱「本集團」）截至二零二四年十二月三十一日止年度的綜合業績連同二 零二三年同期比較數字如下： 1 • 截至二零二四年十二月三十一日止年度的收益約為人民幣29.4百萬元（二 零二三年：約人民幣31.7百萬元），較去年減少約7.3%。 • 截至二零二四年十二月三十一日止年度的毛利約為人民幣12.4百萬元（二 零二三年：約人民幣5.6百萬元），較去年增加約124.0%。 • 截至二零二四年十二月三十一日止年度的淨虧損約為人民幣52.0百萬元（二 零二三年：約人民幣39.5百萬元）。 • 董事會不建議就截至二零二四年十二月三十一日止年度派付股息。 綜合 ...

+0-0-2-0-0-0 0-0-0-0-0-0-0-0-0-0- 中期報告 2024 & 北 Luxxu Group Limited Luxxu Group Limited 爾 時 集 團 有 限 公 司 (於関曼群島註冊成立的有限公司) (股份代號：1327) 目錄 目錄 管理層討論及分析 2 | --- | |------------------------------| | | | | | 簡明綜合損益及其他全面收益表 | | 簡明綜合財務狀況表 | | 簡明綜合權益變動表 | | 簡明綜合現金流量表 | | 簡明綜合中期財務報表附註 | 10 11 12 13 14 勵時集團有限公司 • • • 中期報告 2024 1 管理層討論及分析 管理層討論及分析 概覽 於二零二四年上半年，本集團繼續專注於業務經營，(i) 與不同行業專家合作設計及銷售豪華高端手錶及 配件，包括但不限於鑽石陀飛輪手錶及奢華珠寶手錶；(ii) 為OEM 客戶設計、生產及組裝手錶；(iii) 生產 及銷售我們自有品牌的手錶；及(iv) 協助客戶舉辦展覽。 儘管香港零售業銷售全面增長，但由於行業內競爭激烈，截至二零二四年六月三十日止 ...

Financial Performance - For the six months ended June 30, 2024, the company's revenue decreased by approximately RMB 5.2 million or 19.0% to RMB 22.1 million compared to RMB 27.3 million for the same period in 2023[6] - The company's net loss for the six months ended June 30, 2024, was approximately RMB 10.7 million, a decrease from a net loss of approximately RMB 18.1 million for the same period in 2023[15] - Gross profit increased by approximately RMB 1.6 million or 37.2% to RMB 5.9 million for the six months ended June 30, 2024, compared to RMB 4.3 million for the same period in 2023[8] - The overall gross margin improved from approximately 15.9% for the six months ended June 30, 2023, to approximately 26.9% for the same period in 2024[8] - Revenue for the six months ended June 30, 2024, was RMB 22,090,000, a decrease of 19.8% compared to RMB 27,289,000 for the same period in 2023[40] - The company reported a loss before tax of RMB 10,729,000, an improvement from a loss of RMB 18,074,000 in the same period last year, indicating a reduction of 40.5%[40] - Total comprehensive loss for the period was RMB 10,593,000, compared to RMB 17,640,000 in the prior year, reflecting a decrease of 40.0%[40] - The company reported a net loss of RMB (5,733,000) for the six months ended June 30, 2024, compared to a loss of RMB (9,789,000) in the same period last year[57] - Basic and diluted loss per share was RMB 2.0, compared to RMB 3.4 for the same period last year, showing an improvement of 41.2%[40] - The company reported a loss attributable to shareholders of RMB 10,729,000 for the six months ended June 30, 2024, compared to a loss of RMB 18,074,000 for the same period in 2023, representing a 40.5% improvement[64] Cash Flow and Assets - The company's cash and bank balances totaled approximately RMB 1.4 million as of June 30, 2024, down from approximately RMB 2.0 million as of December 31, 2023[17] - Current assets totaled RMB 85,956,000, a decrease from RMB 92,202,000 at the end of 2023, indicating a decline of 6.9%[42] - The company's net asset value decreased to RMB 71,598,000 from RMB 82,191,000, representing a decline of 12.9%[42] - Non-current assets amounted to RMB 4,834,000 for property, plant, and equipment as of June 30, 2024, down from RMB 8,704,000 as of December 31, 2023[42] - Cash and cash equivalents at the end of the period increased to RMB 1,381,000 from RMB 1,280,000 in the previous year[46] - Trade receivables, net of expected credit loss provisions, amounted to RMB 54,812,000 as of June 30, 2024, slightly down from RMB 55,775,000 as of December 31, 2023[70] - The aging analysis of trade receivables showed an increase in amounts overdue over 180 days, rising to RMB 13,648,000 from RMB 19,520,000 in the previous period[70] Operational Highlights - The total salary cost for the group for the six months ended June 30, 2024, was approximately RMB 35 million, compared to RMB 38 million for the same period in 2023[27] - Employee expenses totaled RMB 3,530,000, a decrease from RMB 3,873,000 in the previous year[63] - Cost of goods sold recognized as expenses was RMB 16,144,000, down from RMB 22,947,000 in 2023, indicating improved cost management[63] - The group maintained a diversified investment portfolio and will continue to monitor investment performance and market trends[26] - The company operates primarily in China and Hong Kong, with total external customer revenue of RMB 22,090,000, down from RMB 27,289,000 in the previous year[54] - The company continues to provide trade customers with a credit period of 0 to 180 days[70] Strategic Outlook - The company plans to enhance its design and development capabilities by recruiting more talent and improving the design team's skills[16] - The company anticipates that 2024 will be a challenging year due to the economic conditions in Hong Kong and China, but remains committed to finding new opportunities[16] Corporate Governance - The board did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[22] - The company has adopted a code of conduct for securities transactions by directors, confirming compliance as of June 30, 2024[38] - The audit committee, composed of three independent non-executive directors, reviewed the financial statements for the six months ended June 30, 2024[37] - No significant events affecting the group occurred after the reporting period[76] Debt and Liabilities - The current ratio increased from 10.6 times as of December 31, 2023, to 11.0 times as of June 30, 2024[17] - The debt-to-equity ratio increased from approximately 32.5% as of December 31, 2023, to approximately 38.8% as of June 30, 2024[17] - As of June 30, 2024, the group had no significant contingent liabilities[22] - As of June 30, 2024, the group had no pledged assets to secure any loans granted to the group[18] - As of June 30, 2024, the group had no significant capital commitments, remaining at zero RMB as of December 31, 2023[19] - The group did not enter into any hedging arrangements for foreign exchange risks, primarily related to RMB and USD, as of June 30, 2024[20] Investments - The group reported a fair value loss of RMB 2,199,000 from its significant investment in Financial News Media Group Limited, representing 2.0% of the group's total assets[25] - The group had no significant acquisitions or disposals of subsidiaries or associates during the six months ended June 30, 2024[23] - There were no stock options granted under the stock option plan during the six months ended June 30, 2024, consistent with the previous year[74] - The total number of stock options outstanding as of June 30, 2024, remained at 65,296,000[75]

Financial Performance - Revenue for the year ended December 31, 2023, decreased by approximately RMB 32.7 million or 50.8% to RMB 31.7 million compared to RMB 64.4 million for the year ended December 31, 2022[17]. - Cost of sales for the year ended December 31, 2023, decreased by approximately RMB 33.5 million or 56.2% to RMB 26.1 million compared to RMB 59.6 million for the year ended December 31, 2022[18]. - Gross profit for the year ended December 31, 2023, was RMB 5.6 million, an increase from RMB 4.8 million in the previous year[7]. - The company reported a net loss of RMB 39.5 million for the year ended December 31, 2023, compared to a net loss of RMB 48.2 million in 2022[7]. - Loss before tax decreased from approximately RMB 48.3 million for the year ended December 31, 2022, to approximately RMB 39.5 million for the year ended December 31, 2023, a reduction of about RMB 8.8 million[22]. - The company reported a loss before tax of RMB 39,536,000, an improvement from a loss of RMB 48,247,000 in 2022, representing a 17.3% reduction in losses[167]. - The total comprehensive income for the year was RMB (36,184) thousand, compared to RMB (35,999) thousand in 2022, showing a slight increase in overall losses[176]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 113.6 million, down from RMB 155.2 million in 2022[9]. - Total liabilities as of December 31, 2023, were RMB 31.4 million, a decrease from RMB 36.8 million in 2022[9]. - Current liabilities decreased significantly to RMB 9,581,000 from RMB 26,348,000, a reduction of 63.6%[170]. - The company's net asset value dropped to RMB 82,191,000 from RMB 118,375,000, a decrease of 30.5%[172]. - Cash and cash equivalents fell to RMB 1,998,000 from RMB 9,559,000, indicating a decline of 79.1%[170]. - Cash and bank balances totaled approximately RMB 2.0 million as of December 31, 2023, down from approximately RMB 9.6 million as of December 31, 2022[27]. Inventory and Receivables - The company held inventory valued at RMB 59,654,000 as of December 31, 2023, with significant judgments applied to assess the net realizable value due to long-aging inventory from recent pandemic impacts[153]. - Trade receivables decreased to RMB 21,440,000 from RMB 51,710,000, a decline of 58.6%[170]. - As of December 31, 2023, the company reported trade receivables with a total book value of RMB 55,775,000 and an expected credit loss provision of RMB 34,335,000[150]. - The credit period granted to customers ranges from 0 to 180 days, with management regularly assessing the recoverability of trade receivables based on various factors[150]. Operational and Market Conditions - The company anticipates that 2024 will be a challenging year due to economic conditions in Hong Kong and China[12]. - The retail sales of jewelry, watches, and luxury gifts in Hong Kong increased by approximately 54.9% compared to 2022[12]. - The group faces operational risks from market fluctuations, changing industry standards, competition, and evolving customer demands[48]. Governance and Compliance - The company has adopted the corporate governance code and has complied with the relevant provisions throughout the year ending December 31, 2023[100]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors, complying with the requirement that at least one must have appropriate professional qualifications or accounting expertise[101]. - The company has maintained the required public float since its listing on January 30, 2015, according to the Hong Kong Stock Exchange listing rules[53]. - The company has adopted a code of conduct for securities transactions by directors, confirming compliance from the date of listing to the report date[70]. Audit and Financial Reporting - The financial statements for the year ending December 31, 2023, were audited by Zhongji Xinshe (Hong Kong) CPA Limited[93]. - The audit committee assists the board in overseeing the financial reporting process[158]. - The independent auditor has audited the consolidated financial statements and confirmed they reflect the group's financial position accurately as of December 31, 2023[146]. - The audit identified key audit matters, including the assessment of expected credit loss provisions for trade receivables and inventory provision evaluations[149]. Employee and Remuneration - The company employed 56 staff members as of December 31, 2023, with total salary costs of approximately RMB 4.4 million for the fiscal year[33]. - The board of directors reviews employee compensation annually to ensure competitiveness in the market[90]. - The company is committed to ensuring that remuneration reflects individual performance and the complexity of roles[121]. Risk Management - Financial risks include liquidity risk, interest rate risk, and currency risk, which are critical for the group's business and financial performance[48]. - The company has established a risk management report that includes risks, issues, and recommended action plans presented to the board for review[128]. - The internal audit team regularly monitors and reports on concerns to ensure appropriate remedial measures are implemented[124]. Sustainability and Development - The company is committed to sustainable development and has implemented effective measures to achieve resource efficiency and energy conservation[85]. - The company has not encountered any significant disputes with business partners during the year[92].

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，並明確表示概不會就本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Luxxu Group Limited 勵時集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1327） 截至二零二三年十二月三十一日止年度的 年度業績公告 截至二零二三年十二月三十一日止年度 | | 附註 | 二零二三年 | 二零二二年 | | --- | --- | --- | --- | | | | 人民幣千元 | 人民幣千元 | | 收益 | 5 | 31,667 | 64,409 | | 銷售成本 | | (26,114) | (59,604) | | 毛利 | | 5,553 | 4,805 | | 其他收益（虧損） | 6 | 43 | (35) | | 按公平值計入損益之金融資產之公平值變動 | | (5,480) | 24 | | 存貨撥備 | | (3,086) | (15,280) | | 銷售及分銷開支 | | (5,425) | (8,989) | | 行政開支 | | ...

中期報告 2023 目錄 儘管香港零售業銷售全面增長，但由於行業內競爭激烈，截至二零二三年六月三十日止六個月的收益有 所減少。根據香港政府統計處數據，相比於二零二二年，於截至二零二三年六月三十日止六個月，香港 珠寶、手錶及鐘錶以及名貴禮品類銷貨價值增加約64.3%。 截至二零二三年六月三十日止六個月本集團的虧損淨額為約人民幣18.1百萬元，較截至二零二二年六 月三十日止六個月的虧損約人民幣16.7百萬元有所增加。該增加主要是由於毛利減少及其他收益及虧 損增加的淨影響所致。 財務回顧 收益 | 管理層討論及分析 | 2 | | --- | --- | | 簡明綜合損益及其他全面收益表 | 10 | | 簡明綜合財務狀況表 | 11 | | 簡明綜合權益變動表 | 12 | | 簡明綜合現金流量表 | 13 | | 簡明綜合中期財務報表附註 | 14 | 勵時集團有限公司 • • • 中期報告 2023 1 目錄 管理層討論及分析 概覽 於二零二三年上半年，本集團繼續專注於業務經營，(i) 與不同行業專家合作設計及銷售豪華高端手錶及 配件，包括但不限於鑽石陀飛輪手錶及奢華珠寶手錶；(ii) 為OEM 客戶設計、生 ...

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之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不會就本公告全部或任 何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Luxxu Group Limited 勵 時 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1327） 截至二零二三年六月三十日止六個月中期業績公告 勵時集團有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司及其附屬 公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未經審核綜合中期 業績連同比較數據。本公告載有本公司二零二三年中期報告全文，符合香港聯合交 易所有限公司（「聯交所」）證券上市規則有關隨附中期業績初步公告資料的相關 規定。本公告刊載於聯交所網站(www.hkexnews.hk)及本公司網站(www.luxxu.hk)。 本公司中期報告的印刷版將適時寄發予本公司股東及可於上述網站查閱。 承董事會命 勵時集團有限公司 ...

Financial Performance - Revenue for the year ended December 31, 2022, was approximately RMB 64.4 million, a decrease of about RMB 6.2 million or 8.8% compared to RMB 70.7 million for the year ended December 31, 2021[21]. - Gross profit for the year was RMB 4.8 million, down from RMB 8.4 million in the previous year, reflecting a decline in sales and increased costs[8]. - The company reported a loss from continuing operations of RMB 48.2 million for the year, compared to a loss of RMB 43.9 million in 2021[8]. - The group's net loss for the year ended December 31, 2022, was approximately RMB 48.2 million, compared to a net loss of RMB 43.9 million for the previous year[51]. - The company reported a net loss of RMB 48,247,000 for 2022, compared to a net loss of RMB 43,859,000 in 2021, indicating a worsening financial performance[171]. - Loss before tax increased from approximately RMB 43.9 million for the year ended December 31, 2021, to approximately RMB 48.3 million for the year ended December 31, 2022, an increase of about RMB 4.4 million[27]. - Total equity decreased from RMB 154,374,000 in 2021 to RMB 118,375,000 in 2022, representing a decline of approximately 23.3%[174]. - The company’s basic and diluted loss per share improved slightly from RMB 9.33 in 2021 to RMB 8.95 in 2022[171]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 155.2 million, a decrease from RMB 191.3 million in 2021[10]. - Total liabilities were RMB 36.8 million, slightly down from RMB 37.0 million in the previous year[10]. - Current liabilities increased significantly from RMB 13,618,000 in 2021 to RMB 26,348,000 in 2022, representing a rise of 93.0%[173]. - Cash and bank balances totaled approximately RMB 9.6 million as of December 31, 2022, down from approximately RMB 10.1 million as of December 31, 2021[31]. - The company's cash and cash equivalents decreased slightly from RMB 10,134,000 in 2021 to RMB 9,559,000 in 2022, a decline of 5.7%[173]. Operational Performance - The average selling price of watches decreased during the year, impacting overall revenue[21]. - Sales cost decreased from approximately RMB 62.3 million for the year ended December 31, 2021, to approximately RMB 59.6 million for the year ended December 31, 2022, a reduction of about RMB 2.7 million or approximately 4.3%[23]. - Gross profit decreased from approximately RMB 8.4 million for the year ended December 31, 2021, to approximately RMB 4.8 million for the year ended December 31, 2022, a decline of about RMB 3.6 million or approximately 42.9%, with the overall gross margin dropping from approximately 11.8% to approximately 7.5%[24]. - Selling and distribution expenses decreased from approximately RMB 14.7 million for the year ended December 31, 2021, to approximately RMB 9.0 million for the year ended December 31, 2022, a reduction of about RMB 5.7 million or approximately 38.9%[25]. - Administrative expenses increased from approximately RMB 13.9 million for the year ended December 31, 2021, to approximately RMB 16.4 million for the year ended December 31, 2022, an increase of about RMB 2.5 million or approximately 18.0%[26]. Market Outlook - The luxury watch and jewelry market is expected to remain strong in the long term due to rising disposable income and increased participation of women in the workforce[14]. - The company aims to adapt its business and product mix to meet market demands, focusing on luxury watches and jewelry[13]. - The company is committed to exploring new opportunities and preparing to stand out in the future despite current uncertainties[15]. Corporate Governance - The board of directors has reviewed and confirmed compliance with the corporate governance code during the year ended December 31, 2022[105]. - The board is responsible for determining overall strategy, monitoring operational and financial performance, and managing risks related to achieving the company's objectives[108]. - The company has adopted a remuneration policy that ensures no director can determine their own remuneration[123]. - The company emphasizes the importance of independent non-executive directors in decision-making processes[111]. - The company confirmed that all directors complied with the standards set out in the code for securities transactions from the listing date to the report date[73]. Risk Management - The group faces operational risks from market fluctuations, changing industry standards, competition, and evolving customer demands[52]. - The group’s financial risk management includes liquidity risk, interest rate risk, and currency risk[52]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives[133]. Employee and Talent Management - The company plans to enhance its design and development capabilities by recruiting more talent and improving the design team's skills[13]. - The total number of employees decreased from 108 as of December 31, 2021, to 56 as of December 31, 2022, with total salary costs for the fiscal year approximately RMB 3.9 million, down from approximately RMB 12.2 million[37]. - The company has adopted a share option scheme to reward employees for their contributions[95]. Environmental and Social Responsibility - The company is committed to long-term sustainable development and aims to achieve efficient resource utilization and energy conservation[89]. - The company will publish its Environmental, Social, and Governance (ESG) report within three months after the end of each financial year[91].