Core Viewpoint - The company reported a decrease in revenue and a narrowed net loss for the first half of 2025, indicating challenges in the competitive landscape of the industry [1] Financial Performance - Revenue for the period was 21.366 million RMB, representing a year-on-year decline of 3.3% [1] - The net loss was 5.591 million RMB, which is a reduction of 47.9% compared to the previous year [1] - Basic loss per share was 3.5 cents [1] Industry Context - The decrease in revenue is attributed to intense competition within the industry, leading to a reduction in sales orders [1] - The impact of increased exhibition revenue and a rise in the average selling price of the company's branded watches partially offset the revenue decline [1]

[Management Discussion and Analysis](index=3&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Financial Review](index=3&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's revenue slightly decreased, but gross profit significantly increased due to higher average selling prices of branded watches, while other income and losses turned profitable, and the loss for the period narrowed substantially [Revenue](index=3&type=section&id=%E6%94%B6%E7%9B%8A) - Revenue slightly decreased by **3.2%**, primarily due to intense industry competition leading to fewer sales orders, partially offset by increased exhibition income and higher average selling prices of branded watches[6](index=6&type=chunk) Revenue Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 21.4 | 22.1 | (0.7) | (3.2%) | [Cost of Sales](index=3&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) - Cost of sales decreased by **21.7%**, consistent with the reduction in revenue from branded watch sales during the period[7](index=7&type=chunk) Cost of Sales Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of sales | 12.6 | 16.1 | (3.5) | (21.7%) | [Gross Profit and Gross Margin](index=3&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) - Gross profit significantly increased by **49.2%**, primarily due to higher average selling prices of branded watches[8](index=8&type=chunk) - Overall gross margin improved from 26.9% to **41.1%**[8](index=8&type=chunk) Gross Profit and Gross Margin Overview | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross profit (RMB million) | 8.8 | 5.9 | 49.2% increase | | Gross margin | 41.1% | 26.9% | 14.2 percentage points increase | [Other Income and Losses](index=3&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) - Other income and losses turned from a loss of **RMB 5.7 million** in the prior period to an income of **RMB 1.2 million**, mainly due to unrealized fair value changes of financial assets at fair value through profit or loss[9](index=9&type=chunk) Other Income and Losses Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other income and losses | 1.2 (income) | (5.7) (loss) | Turnaround to profit | [Selling and Distribution Expenses](index=3&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) - Selling and distribution expenses remained stable at approximately **RMB 2.8 million**[10](index=10&type=chunk) Selling and Distribution Expenses Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 2.8 | 2.8 | Stable | [Administrative Expenses](index=3&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) - Administrative expenses increased by **RMB 4.7 million** to **RMB 11.4 million**, primarily due to higher depreciation and staff costs[11](index=11&type=chunk) Administrative Expenses Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Administrative expenses | 11.4 | 6.7 | 4.7 increase | [Finance Costs](index=3&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) - Finance costs slightly decreased to **RMB 1.3 million**[12](index=12&type=chunk) Finance Costs Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Finance costs | 1.3 | 1.5 | (0.2) decrease | [Loss Before Tax](index=4&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) - Loss before tax decreased from **RMB 10.7 million** in the prior period to **RMB 5.6 million**[14](index=14&type=chunk) Loss Before Tax Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Loss before tax | (5.6) | (10.7) | 5.1 decrease | [Loss for the Period](index=4&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) - Loss for the period decreased from **RMB 10.7 million** in the prior period to **RMB 5.6 million**, influenced by increased gross profit, higher administrative expenses, and the turnaround in other income and losses[15](index=15&type=chunk) Loss for the Period Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Loss for the period | (5.6) | (10.7) | 5.1 decrease | [Prospects and Future Outlook](index=4&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The Group plans to enhance watch and jewelry design capabilities by strengthening its design team and recruiting talent to navigate the challenging economic environment of 2025, focusing on luxury high-end watches and jewelry and considering collaborations with renowned designers - The Group aims to enhance watch and jewelry design and development capabilities and strengthen core competitiveness by improving the design and artistic literacy of its design team and recruiting more talent[16](index=16&type=chunk) - Anticipating a challenging year in 2025, the Group will closely monitor market responses and re-strategize its business and product portfolio to adapt to market demands[16](index=16&type=chunk) - The Group remains optimistic about the luxury high-end watch, luxury jewelry, and accessories consumer markets in the long term, especially driven by the rising middle class and increased disposable income of Chinese women[16](index=16&type=chunk) - Consideration is given to collaborating with renowned designers for fashionable, reasonably priced watches and jewelry suitable for professional wear[16](index=16&type=chunk) [Financial Position](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) The Group's cash and bank balances significantly increased, liquidity ratio substantially improved, and gearing ratio significantly decreased, indicating improved liquidity and reduced financial leverage - Total cash and bank balances increased to approximately **RMB 2.4 million** (December 31, 2024: approximately RMB 1.0 million)[18](index=18&type=chunk) - Current ratio increased from **5.7 times** as of December 31, 2024, to **15.5 times** as of June 30, 2025[18](index=18&type=chunk) - Gearing ratio decreased from approximately **86.2%** as of December 31, 2024, to approximately **52.0%** as of June 30, 2025[18](index=18&type=chunk) Financial Position Key Indicators | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and bank balances (RMB million) | 2.4 | 1.0 | 1.4 increase | | Current ratio | 15.5 times | 5.7 times | 9.8 times increase | | Gearing ratio | 52.0% | 86.2% | 34.2 percentage points decrease | [Debts and Asset Pledges](index=4&type=section&id=%E5%82%B5%E9%A0%85%E5%8F%8A%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had not pledged any assets to secure loans - As of June 30, 2025, the Group had not pledged any assets to obtain any loans[19](index=19&type=chunk) [Capital Commitments](index=5&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments (December 31, 2024: RMB zero)[21](index=21&type=chunk) [Foreign Exchange Risk](index=5&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group primarily operates in China, facing foreign exchange risks related to RMB and USD, with no hedging arrangements in place during the period, but management will monitor and hedge as necessary - The Group primarily operates in China and is exposed to foreign exchange risks related to RMB and USD[22](index=22&type=chunk) - For the six months ended June 30, 2025, the Group had not entered into any hedging arrangements[22](index=22&type=chunk) - Management will continue to closely monitor foreign currency risks and make hedging arrangements when necessary[22](index=22&type=chunk) [Capital Structure](index=5&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) Details of changes in the Company's share capital are provided in Note 12 to the condensed consolidated interim financial statements - Details of changes in the Company's share capital are set out in Note 12 to the condensed consolidated interim financial statements[23](index=23&type=chunk) [Contingent Liabilities](index=5&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024[24](index=24&type=chunk) [Dividend Payment](index=5&type=section&id=%E6%B4%BE%E4%BB%98%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[25](index=25&type=chunk) [Significant Acquisitions or Disposals](index=5&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries and associates - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries and associates[26](index=26&type=chunk) [Significant Investments](index=5&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group holds significant investments in listed securities, including Caixin Media Group Co., Ltd. and Juntai Holdings Limited, totaling **RMB 15.853 million**, representing **22.7%** of total assets, with a strategy to maximize sustainable long-term returns - As of June 30, 2025, significant investments totaled **RMB 15.853 million**, representing **22.7%** of the Group's total assets[27](index=27&type=chunk) - The investment strategy aims to build a diversified and flexible investment portfolio to maximize sustainable long-term returns and strive for high growth[28](index=28&type=chunk) Significant Investment Details | Investee Company Name | Fair Value Gain/(Loss) (RMB thousand) | Fair Value as of June 30, 2025 (RMB thousand) | Percentage of Group's Total Assets (%) | Number of Shares Held | Percentage of Equity Held (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Caixin Media Group Co., Ltd. (205.HK) | 2,278 | 4,437 | 6.4% | 11,620,000 | 1.58% | | Juntai Holdings Limited (630.HK) | 4,076 | 7,337 | 10.5% | 29,890,000 | 3.09% | | Other listed securities | (5,204) | 4,079 | 5.8% | - | - | | **Total** | **1,150** | **15,853** | **22.7%** | - | - | [Employees and Remuneration Policy](index=6&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E9%85%AC%E9%87%91%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group maintained 56 employees, with total remuneration costs increasing to approximately **RMB 4.7 million**, and annual performance reviews determine salaries and promotions to attract and retain valuable employees - As of June 30, 2025, the Group employed **56 employees**, consistent with the end of last year[30](index=30&type=chunk) - Total remuneration costs increased to approximately **RMB 4.7 million** (prior period 2024: approximately RMB 3.5 million)[30](index=30&type=chunk) - Employee performance is assessed annually, with results used to determine annual salaries and promotions to attract and retain talent[30](index=30&type=chunk) Remuneration Costs Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Total remuneration costs | 4.7 | 3.5 | 1.2 increase | [Purchase, Sale or Redemption of the Company's Listed Securities](index=6&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[31](index=31&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=6&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, no directors or chief executives held any interests or short positions in the Company's or its associated corporations' shares, underlying shares, or debentures requiring disclosure under the SFO or the Model Code - As of June 30, 2025, no directors or chief executives of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that are required to be notified to the Company and the Stock Exchange under the Securities and Futures Ordinance or the Model Code[34](index=34&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=7&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, no other persons (excluding directors and chief executives) held or were deemed to hold any disclosable interests or short positions of **5%** or more in the shares or underlying shares - As of June 30, 2025, no other persons (excluding directors and chief executives of the Company) held or were deemed to hold any interests or short positions of **5%** or more in the shares or underlying shares that are required to be disclosed under the Securities and Futures Ordinance[35](index=35&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=7&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%BC%E8%B2%B7%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E5%88%A9) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries was a party to any arrangement enabling directors or their associates to acquire benefits by purchasing shares or debt securities of the Company or any associated corporation - For the six months ended June 30, 2025, no rights were granted to any director or their respective spouses or children under 18 years of age to acquire benefits through the acquisition of shares or debentures of the Company or any other body corporate[36](index=36&type=chunk) [Directors' Interests in Competing Businesses](index=7&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99%E7%9A%84%E6%AC%8A%E7%9B%8A) For the six months ended June 30, 2025, the directors were unaware of any business or interest of any director or their respective associates that competed or might compete with the Group's business, or any other conflict of interest - For the six months ended June 30, 2025, the directors were unaware of any business or interest that competed with or had a conflict of interest with the Group's business[37](index=37&type=chunk) [Corporate Governance Code](index=8&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) For the six months ended June 30, 2025, the Group adopted and complied with the code provisions set out in Appendix 14 to the Listing Rules, the Corporate Governance Code, and Corporate Governance Report - The Group has adopted and complied with the code provisions set out in Appendix 14 to the Listing Rules, the Corporate Governance Code, and Corporate Governance Report[38](index=38&type=chunk) [Standard Securities Dealing Code for Directors](index=8&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules, and all directors confirmed compliance after inquiry - The Company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[39](index=39&type=chunk) - All directors confirmed compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[39](index=39&type=chunk) [Audit Committee](index=8&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, reviewed the Company's accounting principles and practices, discussed audit, internal control, and financial reporting matters, and reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee has reviewed the Company's adopted accounting principles and practices and discussed audit, internal control, and financial reporting matters[40](index=40&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[40](index=40&type=chunk) [Compliance with the Standard Code](index=8&type=section&id=%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the required standards set out in Appendix 10 to the Listing Rules, and confirmed all directors have complied with it - The Company has adopted a code of conduct with terms no less exacting than the Standard Code set out in Appendix 10 to the Listing Rules[41](index=41&type=chunk) - All directors have complied with the Standard Code[41](index=41&type=chunk) [Board of Directors](index=8&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of June 30, 2025, the Board of Directors comprised two executive directors (Mr. Liang Yanhuan, Mr. Yang Xi) and three independent non-executive directors (Mr. Yu Junmin, Ms. Duan Baili, Mr. Zhong Weili) - The Board of Directors comprises two executive directors (Mr. Liang Yanhuan, Mr. Yang Xi) and three independent non-executive directors (Mr. Yu Junmin, Ms. Duan Baili, Mr. Zhong Weili)[42](index=42&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=9&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group recorded a loss for the period of **RMB 5.591 million**, a significant reduction from **RMB 10.729 million** in the prior period, with basic and diluted loss per share improving to **RMB 3.5 cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 21,366 | 22,090 | | Cost of sales | (12,577) | (16,144) | | Gross profit | 8,789 | 5,946 | | Other income and losses | 1,150 | (5,733) | | Selling and distribution expenses | (2,785) | (2,762) | | Administrative expenses | (11,442) | (6,680) | | Finance costs | (1,303) | (1,500) | | Loss before tax | (5,591) | (10,729) | | Tax | – | – | | Loss for the period | (5,591) | (10,729) | | Exchange differences on translation of overseas operations | (2,136) | 136 | | Total comprehensive loss for the period | (7,727) | (10,593) | | Loss per share attributable to owners of the Company (RMB cents) | (3.5) | (9.6) | [Condensed Consolidated Statement of Financial Position](index=10&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's net current assets and total equity both increased, indicating an improved financial position, with non-current assets and current liabilities decreasing, while current assets and non-current liabilities remained relatively stable Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 9,198 | 13,877 | | Current assets | 60,572 | 59,874 | | **Liabilities** | | | | Current liabilities | 3,898 | 10,569 | | Non-current liabilities | 24,711 | 29,286 | | **Equity** | | | | Share capital | 1,911 | 45,286 | | Reserves | 39,250 | (11,390) | | **Total equity** | **41,161** | **33,896** | | Net current assets | 56,674 | 49,305 | | Total assets less current liabilities | 65,872 | 63,182 | [Condensed Consolidated Statement of Changes in Equity](index=11&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, total equity attributable to owners of the Company increased to **RMB 41.161 million**, with changes primarily influenced by share capital reduction and rights issue, offsetting the loss for the period and decrease in foreign currency translation reserve Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30, 2025) | Indicator | Share Capital (RMB thousand) | Share Premium (RMB thousand) | Foreign Currency Translation Reserve (RMB thousand) | Share Option Reserve (RMB thousand) | Accumulated Losses (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | January 1, 2025 (Audited) | 45,286 | 473,246 | 8,917 | 5,919 | (499,472) | 33,896 | | Loss for the period | – | – | – | – | (5,591) | (5,591) | | Other comprehensive income for the period | – | – | (2,136) | – | – | (2,136) | | Share capital reduction | (44,381) | – | – | – | 44,381 | – | | Shares issued under rights issue | 1,006 | 13,986 | – | – | – | 14,992 | | **June 30, 2025 (Unaudited)** | **1,911** | **487,232** | **6,781** | **5,919** | **(460,682)** | **41,161** | [Condensed Consolidated Statement of Cash Flows](index=12&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, the Group's net increase in cash and cash equivalents was **RMB 1.409 million**, primarily driven by net cash from financing activities, despite net cash outflow from operating activities Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (2,824) | (235) | | Net cash used in investing activities | – | – | | Net cash from/(used in) financing activities | 4,233 | (410) | | Net increase/(decrease) in cash and cash equivalents | 1,409 | (645) | | Effect of exchange rate changes | (57) | 28 | | Cash and cash equivalents at beginning of period | 1,030 | 1,998 | | **Cash and cash equivalents at end of period** | **2,382** | **1,381** | [Notes to the Condensed Consolidated Interim Financial Statements](index=13&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1. Basis of Preparation](index=13&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, with the Group primarily engaged in manufacturing, trading, and retailing of own-brand watches and jewelry, OEM watches, and assisting clients with exhibitions, using HKD as functional currency and RMB as presentation currency - Interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules[56](index=56&type=chunk) - The Group's principal activities include manufacturing, trading, and retailing of own-brand watches and jewelry, OEM watches, and assisting clients with exhibitions[56](index=56&type=chunk) - The Company's functional currency is HKD, and the presentation currency is RMB[56](index=56&type=chunk) [2. Application of New and Revised Hong Kong Financial Reporting Standards](index=13&type=section&id=2.%20%E6%87%89%E7%94%A8%E6%96%B0%E8%A8%82%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87) The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value, and the Group has initially applied amendments to HKAS 21, which are not expected to have a significant impact on operating results and financial position - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[57](index=57&type=chunk) - The Group has initially applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," effective from January 1, 2025[58](index=58&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards is not expected to have a significant impact on the Group's operating results and financial position[58](index=58&type=chunk) [3. Operating Segments](index=14&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8) The Group operates two business segments: watch manufacturing, trading, and retail, and assisting clients with exhibitions, with no separate reportable segments due to a single management team overseeing the entire business - The Group operates two business segments: watch manufacturing, trading, and retail, and assisting clients with exhibitions[60](index=60&type=chunk) - Due to a single management team, the Group has no separate reportable segments[60](index=60&type=chunk) [Principal Product Turnover](index=14&type=section&id=%E4%B8%BB%E8%A6%81%E7%94%A2%E5%93%81%E7%87%9F%E6%A5%AD%E9%A1%8D) Principal Product Turnover (Six Months Ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Branded watches | 16,655 | 19,080 | | Exhibition income | 4,711 | 3,010 | | **Total** | **21,366** | **22,090** | [Geographical Information](index=14&type=section&id=%E5%9C%B0%E7%90%86%E8%B3%87%E6%96%99) - The Group's operations and non-current assets are primarily located in the People's Republic of China and Hong Kong[62](index=62&type=chunk) External Customer Revenue by Customer Location (Six Months Ended June 30) | Customer Location | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Hong Kong, China | 4,711 | 3,010 | | China (excluding Hong Kong) | 16,655 | 19,080 | | **Total** | **21,366** | **22,090** | [Major Customer Information](index=14&type=section&id=%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E8%B3%87%E6%96%99) - For the six months ended June 30, 2025, and 2024, no individual customer contributed more than **10%** of the Group's total revenue[64](index=64&type=chunk) [4. Other Income and Losses](index=15&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) During the period, financial assets at fair value through profit or loss generated an unrealized fair value gain of **RMB 1.150 million**, a significant improvement from a loss of **RMB 5.733 million** in the prior period Other Income and Losses (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Unrealized fair value loss on financial assets at fair value through profit or loss | 1,150 | (5,733) | | **Total** | **1,150** | **(5,733)** | [5. Finance Costs](index=15&type=section&id=5.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs, primarily from interest on bonds payable and lease liabilities, decreased to **RMB 1.303 million** during the period Finance Costs (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bonds payable and lease liabilities | 1,303 | 1,500 | [6. Taxation](index=15&type=section&id=6.%20%E7%A8%85%E9%A0%85) No Hong Kong profits tax was provided for the period due to no estimated assessable profits, while Chinese subsidiaries are subject to corporate income tax at a rate of **25%** - For the six months ended June 30, 2025, and 2024, no Hong Kong profits tax was provided as there were no estimated assessable profits arising in or derived from Hong Kong[69](index=69&type=chunk) - Chinese subsidiaries are subject to a tax rate of **25%**[70](index=70&type=chunk) Taxation (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | – | – | | Deferred tax reversed in Hong Kong | – | – | | **Total** | **–** | **–** | [7. Loss for the Period](index=16&type=section&id=7.%20%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) Loss for the period is stated after deducting employee expenses, advertising expenses, cost of inventories recognized as expense, and depreciation, with employee expenses and depreciation showing increases Loss for the Period Deductions (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total employee expenses (including directors' emoluments) | 4,716 | 3,530 | | Advertising expenses | 2,785 | 962 | | Cost of inventories recognized as expense | 12,577 | 16,144 | | Depreciation | 4,291 | 3,870 | [8. Loss Per Share Attributable to Owners of the Company](index=16&type=section&id=8.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company was **RMB 3.5 cents**, an improvement from **RMB 9.6 cents** in the prior period, with weighted average ordinary shares adjusted for capital reorganization and rights issue, and diluted loss per share being the same as basic due to anti-dilutive share options - Basic and diluted loss per share attributable to owners of the Company was **RMB 3.5 cents** (2024: RMB 9.6 cents)[74](index=74&type=chunk) - The weighted average number of ordinary shares has been adjusted for the share consolidation under the capital reorganization effective March 14, 2025, and the rights issue completed on April 30, 2025[74](index=74&type=chunk) - Diluted loss per share is the same as basic loss per share because the exercise of share options had an anti-dilutive effect[79](index=79&type=chunk) Loss Per Share Calculation Data (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (RMB thousand) | (5,591) | (10,729) | | Weighted average number of ordinary shares (thousand shares) | 158,580 | 111,305 | | Basic and diluted loss per share (RMB cents) | (3.5) | (9.6) | [9. Interim Dividend](index=17&type=section&id=9.%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[76](index=76&type=chunk) [10. Property, Plant and Equipment](index=17&type=section&id=10.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment - For the six months ended June 30, 2025, the Group did not acquire any property, plant, and equipment[77](index=77&type=chunk) [11. Trade Receivables](index=17&type=section&id=11.%20%E8%B2%A8%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables decreased to **RMB 11.682 million**, with a significant reduction in receivables aged over 180 days, and the Group generally grants credit terms of 0 to 180 days to trade customers - Net trade receivables decreased to **RMB 11.682 million** (December 31, 2024: RMB 13.986 million)[78](index=78&type=chunk) - The Group generally grants credit terms of **0 to 180 days** to its trade customers[78](index=78&type=chunk) Trade Receivables Ageing Analysis (Presented by Invoice Date at End of Reporting Period) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 3,091 | 1,083 | | 31 to 60 days | 3,026 | 735 | | 61 to 90 days | – | 553 | | 91 to 180 days | 1,838 | 498 | | Over 180 days | 3,727 | 11,117 | | **Total** | **11,682** | **13,986** | [12. Share Capital](index=18&type=section&id=12.%20%E8%82%A1%E6%9C%AC) The Company completed a capital reorganization on March 14, 2025, involving share consolidation, capital reduction, and share subdivision, followed by a rights issue on April 30, 2025, issuing 107,827,200 new shares and raising approximately **HKD 16.2 million** (before expenses), increasing issued share capital - The Company completed a capital reorganization on March 14, 2025, involving share consolidation, capital reduction, and share subdivision[80](index=80&type=chunk)[81](index=81&type=chunk)[83](index=83&type=chunk) - Share consolidation: every five (5) existing shares of **HKD 0.10** each were consolidated into one (1) consolidated share of **HKD 0.50** each[81](index=81&type=chunk) - Capital reduction: the par value of each issued consolidated share was reduced from **HKD 0.50** to **HKD 0.01**, with the credit arising used to offset accumulated losses[81](index=81&type=chunk) - Rights issue: completed on April 30, 2025, issuing 107,827,200 rights shares on the basis of one rights share for every one issued share, raising a maximum of approximately **HKD 16.2 million** (before expenses)[83](index=83&type=chunk) Issued and Fully Paid Share Capital Overview | Indicator | June 30, 2025 (thousand shares) | December 31, 2024 (thousand shares) | | :--- | :--- | :--- | | Number of issued and fully paid ordinary shares | 215,654 | 539,136 | | Par value of issued and fully paid ordinary shares (RMB thousand) | 1,911 | 45,286 | [13. Share Option Scheme](index=19&type=section&id=13.%20%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company's share option scheme was adopted on December 19, 2014, for a 10-year term, with no share options granted during the six months ended June 30, 2025, and the number of share options decreased due to adjustments - The share option scheme was adopted on December 19, 2014, with a term of **10 years**[84](index=84&type=chunk) - For the six months ended June 30, 2025, no share options were granted under the share option scheme[84](index=84&type=chunk) Details of Changes in Number of Share Options Under Share Option Scheme | Indicator | Outstanding as of January 1, 2025 (thousand options) | Granted during the period (thousand options) | Exercised during the period (thousand options) | Adjusted during the period (thousand options) | Outstanding as of June 30, 2025 (thousand options) | | :--- | :--- | :--- | :--- | :--- | :--- | | Employee share options | 29,376 | – | – | (23,311) | 6,065 | [14. Events After the Reporting Period](index=19&type=section&id=14.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events affecting the Group have occurred since the end of the reporting period - No significant events affecting the Group have occurred since the end of the reporting period[86](index=86&type=chunk)

Core Viewpoint - The company, Lisheng Group (01327.HK), has announced a board meeting scheduled for August 29, 2025, to consider and potentially approve its unaudited consolidated interim results for the six months ending June 30, 2025, as well as to discuss the distribution of an interim dividend, if deemed appropriate [1] Summary by Relevant Sections - Company Announcement - Lisheng Group will hold a board meeting on August 29, 2025 [1] - The meeting will focus on the approval of unaudited consolidated interim results for the six months ending June 30, 2025 [1] - The board will also consider the distribution of an interim dividend, if applicable [1]

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。 勵時集團有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將於二零 二五年八月二十九日（星期五）舉行董事會會議，藉以（其中包括）考慮及（如認為 合適）批准本公司及其附屬公司截至二零二五年六月三十日止六個月之未經審核 綜合中期業績，以及考慮派發中期股息（如有）。 承董事會命 勵時集團有限公司 執行董事 楊淅 香港，二零二五年八月八日 於本公告日期，董事會包括兩名執行董事梁艷煌先生及楊淅先生；及三名獨立非 執行董事余俊敏先生、段白麗女士及鍾維立先生。 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） 董事會會議通告 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 勵時集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01327 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 13,000,000,000 | HKD | | 0.01 | HKD | | 130,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 13,000,000,000 | HKD | | 0.01 | HKD | | 130,000,000 | 本月 ...

资料显示，励时集团有限公司是中国经济型指针式石英手表的领先国内手表品牌拥有人兼领先的指针式 石英手表OEM制造商。公司亦为中国五大指针式石英手表制造商之一。公司于一九九四年成立,初时为 手表及相关产品的制造商,凭借逾十年手表制造经验,公司于二零一零年开始以自有品牌Time2U及荣凯设 计、制造及销售手表,其后于二零一二年中期推出主要副品牌Color。公司有两条主要业务线,即按OEM基 准制造及销售手表以及以专有品牌及主要副品牌(即Time2U、荣凯及Color)制造及销售手表。公司按 OEM基准生产的手表附带OEM客户指定的企业标志或品牌。 7月15日，截至港股收盘，恒生指数上涨1.6%，报24590.12点。励时集团（01327.HK）收报0.6港元/ 股，上涨20.0%，成交量46.4万股，成交额24.23万港元，振幅22.0%。 最近一个月来，励时集团累计涨幅92.31%，今年来累计涨幅66.79%，跑赢恒生指数20.65%的涨幅。 财务数据显示，截至2024年12月31日，励时集团实现营业总收入2935.7万元，同比减少7.29%；归母净 利润-5196.4万元，同比减少31.43%；毛利率42.36 ...

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].

Corporate Governance - Luxxu Group Limited is committed to maintaining high standards of corporate governance and has adopted the corporate governance code as per the listing rules throughout the fiscal year ending December 31, 2024[2] - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[4] - The company has reviewed its corporate governance practices and is confident in its compliance with the relevant codes and guidelines[2]

Financial Performance - For the year ending December 31, 2024, the revenue was approximately RMB 294 million, a decrease of about 7.3% compared to RMB 317 million in 2023[3]. - Gross profit for the year was approximately RMB 124 million, an increase of about 124.0% from RMB 56 million in 2023[3]. - The net loss for the year was approximately RMB 520 million, compared to a net loss of RMB 395 million in 2023[3]. - The basic and diluted loss per share was RMB 9.64 for the year, compared to RMB 7.33 in 2023[4]. - The group reported a pre-tax loss of RMB 51,964,000 in 2024, compared to a pre-tax loss of RMB 39,536,000 in 2023, indicating a worsening of approximately 31%[21]. - The company reported a loss attributable to owners of the company of RMB 51,964,000 for the year ended December 31, 2024, compared to a loss of RMB 39,536,000 for the year ended December 31, 2023, indicating an increase in loss of approximately 31.5%[23]. - Loss before tax increased by approximately RMB 12.5 million, from approximately RMB 39.5 million for the year ended December 31, 2023, to approximately RMB 52.0 million for the year ended December 31, 2024[39]. Revenue and Sales - Total revenue for the group decreased to RMB 29,357,000 in 2024 from RMB 31,667,000 in 2023, a decline of about 7%[14]. - Revenue from branded watches decreased to RMB 22,149,000 in 2024 from RMB 29,317,000 in 2023, representing a decline of approximately 24%[14]. - Exhibition revenue increased significantly to RMB 7,208,000 in 2024 from RMB 2,350,000 in 2023, marking an increase of approximately 206%[14]. - Revenue decreased by approximately RMB 2.3 million or 7.3% from RMB 31.7 million for the year ended December 31, 2023, to RMB 29.4 million for the year ended December 31, 2024, primarily due to reduced demand for watches amid intense industry competition[34]. Assets and Liabilities - Total assets decreased from RMB 101,783 million in 2023 to RMB 59,874 million in 2024, reflecting a significant reduction in current assets[5]. - The company's total equity decreased from RMB 82,191 million in 2023 to RMB 33,896 million in 2024, indicating a significant decline in net worth[5]. - Trade receivables decreased from RMB 21,440 million in 2023 to RMB 13,986 million in 2024, suggesting improved collection or reduced sales[5]. - The total borrowings of the company increased to RMB 29,230,000 in 2024 from RMB 26,711,000 in 2023, while total equity decreased to RMB 33,896,000 from RMB 82,191,000, resulting in a capital debt ratio of 86% in 2024 compared to 33% in 2023[30]. - Current ratio decreased from 10.6 times as of December 31, 2023, to 5.7 times as of December 31, 2024[42]. - Capital debt ratio increased from 32.5% as of December 31, 2023, to approximately 86.2% as of December 31, 2024[42]. Expenses - Employee benefits expenses increased to RMB 5,240,000 in 2024 from RMB 4,001,000 in 2023, an increase of approximately 31%[17]. - Selling and distribution expenses rose by approximately RMB 1.5 million or about 27.8%, from approximately RMB 5.4 million for the year ended December 31, 2023, to approximately RMB 6.9 million for the year ended December 31, 2024[37]. - Administrative expenses increased by approximately RMB 1.3 million or about 7.0%, from approximately RMB 18.6 million for the year ended December 31, 2023, to approximately RMB 19.9 million for the year ended December 31, 2024[38]. - Cost of sales decreased by approximately RMB 9.2 million or 35.2% from RMB 26.1 million for the year ended December 31, 2023, to RMB 16.9 million for the year ended December 31, 2024, aligning with the decrease in revenue[35]. Business Operations - The company began providing exhibition services starting in 2023, diversifying its business operations[6]. - The company aims to adapt its business and product portfolio to market demands, focusing on the design, production, and sale of luxury high-end watches and jewelry[31]. - The company plans to enhance its design and development capabilities by recruiting more talent and improving the design team's skills to strengthen its core competitiveness in the luxury watch and jewelry market[31]. - The retail sales of jewelry, watches, and luxury gifts in Hong Kong decreased by approximately 14.5% compared to 2023, indicating a challenging market environment[31]. - The company continues to monitor market responses and is prepared to seize new opportunities despite uncertainties in the near term[32]. Shareholder Information - The board of directors did not recommend the payment of dividends for the year ending December 31, 2024[3]. - The group did not declare or propose any dividends for the year, consistent with the previous year[22]. - The company has maintained compliance with the requirement that at least 25% of its shares be held by the public, with approximately 100% of shares held by public shareholders as of December 31, 2024[26]. Accounting and Compliance - The group is currently assessing the impact of new accounting standards that will take effect in 2027, with no significant impact expected on consolidated financial statements[12]. - No significant acquisitions or disposals of subsidiaries were made during the year ended December 31, 2024[43]. - The annual performance announcement and annual report will be published on the company's website and the Hong Kong Stock Exchange website[57]. - The board of directors includes two executive directors and three independent non-executive directors[59]. - The English version of the announcement will prevail in case of any discrepancies with the Chinese version[60].

[Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) This section details the Group's H1 2024 financial performance, including revenue, costs, and loss, alongside its strategic outlook, financial position, and corporate governance practices [Overview](index=3&type=section&id=Overview) The Group focused on luxury watch design, sales, OEM, and exhibition services in H1 2024, experiencing reduced revenue due to competition but a significantly narrowed net loss from improved gross profit and lower other losses - The Group's business focuses on the design, sale, OEM production, and exhibition assistance of luxury high-end watches and accessories[3](index=3&type=chunk) - The sales value of jewelry, watches, clocks, and valuable gifts in Hong Kong decreased by approximately **23.1%** in H1 2024[3](index=3&type=chunk) 2024 H1 Net Loss Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :-------- | :-------------------- | :-------------------- | :------------------- | :-------------- | | Net Loss | 10.7 | 18.1 | (7.4) | -40.9% | [Financial Review](index=3&type=section&id=Financial%20Review) The Group's H1 2024 revenue declined by **19.0%** due to lower branded watch sales, yet a greater reduction in cost of sales, coupled with decreased other losses and controlled expenses, significantly narrowed the period's loss [Revenue](index=3&type=section&id=Revenue) - Revenue decreased primarily due to intense industry competition leading to fewer sales orders, though exhibition income increased[4](index=4&type=chunk) Revenue Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :-------- | :-------------------- | :-------------------- | :------------------- | :-------------- | | Revenue | 22.1 | 27.3 | (5.2) | -19.0% | [Cost of Sales](index=3&type=section&id=Cost%20of%20Sales) - The decrease in cost of sales is consistent with a **30.0%** reduction in branded watch sales revenue during the period[5](index=5&type=chunk) Cost of Sales Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :------------ | :-------------------- | :-------------------- | :------------------- | :-------------- | | Cost of Sales | 16.1 | 22.9 | (6.8) | -29.7% | [Gross Profit and Gross Margin](index=4&type=section&id=Gross%20Profit%20and%20Gross%20Margin) - The increase in gross profit and gross margin is mainly attributable to higher exhibition income[6](index=6&type=chunk) Gross Profit and Gross Margin Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :---------- | :-------------------- | :-------------------- | :------------------- | :-------------- | | Gross Profit| 5.9 | 4.3 | 1.6 | 37.2% | | Gross Margin| 26.9% | 15.9% | 11.0% | - | [Other Income and Losses](index=4&type=section&id=Other%20Income%20and%20Losses) - The reduction in loss is primarily due to a decrease in unrealized fair value losses on financial assets at fair value through profit or loss[7](index=7&type=chunk) Other Income and Losses Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :----------------- | :-------------------- | :-------------------- | :------------------- | :-------------- | | Other Income & Losses | (5.7) | (9.8) | 4.1 | -41.8% | [Selling and Distribution Expenses](index=4&type=section&id=Selling%20and%20Distribution%20Expenses) - The decrease is mainly due to reduced advertising expenses[8](index=8&type=chunk) Selling and Distribution Expenses Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :------------------------- | :-------------------- | :-------------------- | :------------------- | :-------------- | | Selling & Distribution Expenses | 2.8 | 3.3 | (0.5) | -15.2% | [Administrative Expenses](index=4&type=section&id=Administrative%20Expenses) - The decrease is primarily due to the implementation of cost control strategies during the period[9](index=9&type=chunk) Administrative Expenses Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :------------------- | :-------------------- | :-------------------- | :------------------- | :-------------- | | Administrative Expenses | 6.7 | 7.8 | (1.1) | -14.1% | [Finance Costs](index=4&type=section&id=Finance%20Costs) Finance Costs Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :----------- | :-------------------- | :-------------------- | :------------------- | :-------------- | | Finance Costs| 1.5 | 1.5 | 0.0 | 0.0% | [Loss Before Tax](index=5&type=section&id=Loss%20Before%20Tax) Loss Before Tax Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :------------ | :-------------------- | :-------------------- | :------------------- | :-------------- | | Loss Before Tax | (10.7) | (18.1) | 7.4 | -40.9% | [Loss for the Period](index=5&type=section&id=Loss%20for%20the%20Period) - The decrease in loss for the period is mainly due to the net effect of increased gross profit and reduced other income and losses[13](index=13&type=chunk) Loss for the Period Comparison | Indicator | 2024 H1 (RMB million) | 2023 H1 (RMB million) | Change (RMB million) | Change Rate (%) | | :------------- | :-------------------- | :-------------------- | :------------------- | :-------------- | | Loss for the Period | (10.7) | (18.1) | 7.4 | -40.9% | [Prospects and Future Outlook](index=5&type=section&id=Prospects%20and%20Future%20Outlook) The Group anticipates a challenging 2024, planning to enhance design, recruit talent, and re-strategize its product portfolio for the luxury watch and jewelry market, while targeting middle-class and Chinese female consumers with designer collaborations - The Group will enhance its design team and recruit talent to improve watch and jewelry design and development capabilities, strengthening core competitiveness[14](index=14&type=chunk) - A challenging 2024 is anticipated, requiring close market monitoring and a re-strategized business and product portfolio to adapt to market demands[14](index=14&type=chunk) - The long-term outlook for the luxury high-end watch and jewelry market is positive, driven by the rising middle class and increased disposable income of Chinese women[14](index=14&type=chunk) [Financial Position](index=5&type=section&id=Financial%20Position) The Group's liquidity is funded by operating cash, bonds, and capital markets; as of June 30, 2024, cash balances decreased, but the current ratio improved, while the debt-to-asset ratio slightly rose Key Financial Position Indicators Comparison | Indicator | June 30, 2024 (RMB million) | December 31, 2023 (RMB million) | Change (RMB million) | | :-------------------- | :-------------------------- | :------------------------------ | :------------------- | | Cash and Bank Balances| 1.4 | 2.0 | (0.6) | | Current Ratio | 11.0 times | 10.6 times | +0.4 times | | Debt-to-Asset Ratio | 38.8% | 32.5% | +6.3% | [Debts and Asset Pledges](index=6&type=section&id=Debts%20and%20Asset%20Pledges) As of June 30, 2024, the Group had no assets pledged to secure any loans - The Group had no assets pledged to obtain any loans as of June 30, 2024[16](index=16&type=chunk) [Capital Commitments](index=6&type=section&id=Capital%20Commitments) As of June 30, 2024, the Group had no significant capital commitments - The Group had no significant capital commitments as of June 30, 2024[17](index=17&type=chunk) [Foreign Exchange Risk](index=6&type=section&id=Foreign%20Exchange%20Risk) Operating primarily in China, the Group faces RMB and USD foreign exchange risks, with no hedging arrangements in place during the period, but management will monitor and hedge as needed - The Group primarily operates in China, bearing foreign exchange risks related to RMB and USD[18](index=18&type=chunk) - For the six months ended June 30, 2024, the Group did not enter into any hedging arrangements[18](index=18&type=chunk) - Management will closely monitor foreign currency risks and implement hedging arrangements when necessary[18](index=18&type=chunk) [Capital Structure](index=6&type=section&id=Capital%20Structure) Details of the Company's share capital changes are provided in Note 12 to the condensed consolidated interim financial statements - Details of share capital changes are available in Note 12 to the condensed consolidated interim financial statements[19](index=19&type=chunk) [Contingent Liabilities](index=6&type=section&id=Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2024, and December 31, 2023 - The Group had no significant contingent liabilities at the end of the reporting period[20](index=20&type=chunk) [Dividend Payment](index=6&type=section&id=Dividend%20Payment) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of an interim dividend for H1 2024[20](index=20&type=chunk) [Material Acquisitions or Disposals](index=6&type=section&id=Material%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2024, the Group had no material acquisitions or disposals of subsidiaries or associates - For the six months ended June 30, 2024, the Group had no material acquisition or disposal activities[21](index=21&type=chunk) [Material Investments](index=7&type=section&id=Material%20Investments) The Group holds material investments in Caixin Media Group Limited and other listed securities, incurring fair value losses as of June 30, 2024, and plans to maintain a diversified portfolio while monitoring market trends Overview of Material Investments (as of June 30, 2024) | Name of Investee Company | Fair Value Loss (RMB thousand) | Percentage of Group's Audited Total Assets (%) | | :--------------------------- | :----------------------------- | :--------------------------------------------- | | Caixin Media Group Limited | 2,199 | 2.0 | | Other Listed Securities | 3,534 | 6.6 | | **Total** | **5,733** | **8.6** | - The Group will continue to maintain a diversified investment portfolio and closely monitor its investment performance and market trends to adjust its investment strategy[24](index=24&type=chunk) [Employees and Remuneration Policy](index=7&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group maintained a stable employee headcount with slightly reduced remuneration costs, utilizing annual performance reviews to determine compensation and promotions for talent attraction and retention Employee Headcount and Remuneration Cost Comparison | Indicator | June 30, 2024 | December 31, 2023 | Change | | :---------------- | :------------ | :---------------- | :----- | | Employee Headcount| 56 employees | 56 employees | 0 | | Remuneration Cost | 3.5 million | 3.8 million | (0.3) | | (RMB) | | | | - The company conducts annual employee performance reviews, with results used to determine annual salaries and promotions, aiming to attract and retain valuable employees[25](index=25&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=8&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2024, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - Neither the Company nor its subsidiaries engaged in the purchase, redemption, or sale of listed securities during the reporting period[26](index=26&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=8&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2024, the Company's directors and chief executive held unlisted share options, with no ordinary share interests or other disclosable interests or short positions Directors' Long Positions in Shares and Underlying Shares of the Company (as of June 30, 2024) | Name | Capacity and Nature of Interest | Number of Unlisted Share Options (thousand units) | Number of Ordinary Shares Held (thousand units) | Total (thousand units) | Approximate Percentage of Company's Shareholding (%) | | :----- | :------------------------------ | :---------------------------------------------- | :-------------------------------------------- | :--------------------- | :--------------------------------------------------- | | Yang Xi| Beneficial Owner | 4,490 | – | 4,490 | 0.83 | | Zhong Weili| Beneficial Owner | 4,490 | – | 4,490 | 0.83 | | Duan Baili| Beneficial Owner | 4,490 | – | 4,490 | 0.83 | - Except as disclosed above, no other directors or chief executives held disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[27](index=27&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=9&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2024, no other persons, besides the Company's directors and chief executive, held disclosable interests or short positions in shares or underlying shares - Apart from the Company's directors and chief executive, no other persons held disclosable interests or short positions in shares or underlying shares[30](index=30&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=9&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) For the six months ended June 30, 2024, neither the Company nor its subsidiaries participated in arrangements allowing directors or their associates to acquire shares or debt securities for benefit - Neither the Company nor its subsidiaries participated in any arrangements during the reporting period that would enable directors or their associates to benefit from acquiring shares or debt securities of the Company or associated corporations[31](index=31&type=chunk) [Directors' Interests in Competing Businesses](index=9&type=section&id=Directors%27%20Interests%20in%20Competing%20Businesses) For the six months ended June 30, 2024, the Directors were unaware of any competing or potentially conflicting business interests held by directors or their associates with the Group - The Directors were unaware of any director or their associates having interests in businesses competing or potentially conflicting with the Group's business[32](index=32&type=chunk) [Corporate Governance Code](index=9&type=section&id=Corporate%20Governance%20Code) For the six months ended June 30, 2024, the Group adopted and complied with the Corporate Governance Code provisions outlined in Appendix 14 of the Listing Rules - The Group adopted and complied with the Corporate Governance Code provisions in Appendix 14 of the Listing Rules during the reporting period[33](index=33&type=chunk) [Standard Securities Dealing Code for Directors](index=9&type=section&id=Standard%20Securities%20Dealing%20Code%20for%20Directors) The Company adopted the Model Code from Appendix 10 of the Listing Rules for directors' securities transactions, with all directors confirming compliance during the reporting period - The Company adopted the Model Code in Appendix 10 of the Listing Rules as the code of conduct for directors' securities transactions[34](index=34&type=chunk) - Following inquiry, all directors confirmed compliance with the required standards of the Model Code during the reporting period[34](index=34&type=chunk)[36](index=36&type=chunk) [Audit Committee](index=10&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviewed accounting principles, internal controls, financial reporting, and the Group's unaudited condensed consolidated financial statements - The Audit Committee comprises three independent non-executive directors[35](index=35&type=chunk) - The Audit Committee reviewed the Company's accounting principles, internal controls, and financial reporting matters, and also reviewed the Group's unaudited condensed consolidated financial statements[35](index=35&type=chunk) [Board of Directors](index=10&type=section&id=Board%20of%20Directors) As of June 30, 2024, the Board of Directors consisted of two executive directors and three independent non-executive directors - The Board of Directors comprises Mr. Liang Yanhuan, Mr. Yang Xi (Executive Directors), and Mr. Yu Junmin, Ms. Duan Baili, Mr. Zhong Weili (Independent Non-executive Directors)[37](index=37&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's condensed consolidated statement of profit or loss and other comprehensive income for H1 2024 shows a significantly narrowed loss, driven by gross profit growth and expense control, despite reduced revenue Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2024 H1 (RMB thousand) | 2023 H1 (RMB thousand) | Change (RMB thousand) | Change Rate (%) | | :--------------------------------------- | :--------------------- | :--------------------- | :-------------------- | :-------------- | | Revenue | 22,090 | 27,289 | (5,199) | -19.0% | | Cost of Sales | (16,144) | (22,947) | 6,803 | -29.7% | | Gross Profit | 5,946 | 4,342 | 1,604 | 37.0% | | Other Income and Losses | (5,733) | (9,789) | 4,056 | -41.4% | | Selling and Distribution Expenses | (2,762) | (3,283) | 521 | -15.9% | | Administrative Expenses | (6,680) | (7,834) | 1,154 | -14.7% | | Finance Costs | (1,500) | (1,510) | 10 | -0.7% | | Loss Before Tax | (10,729) | (18,074) | 7,345 | -40.6% | | Loss for the Period | (10,729) | (18,074) | 7,345 | -40.6% | | Total Comprehensive Loss for the Period | (10,593) | (17,640) | 7,047 | -39.9% | | Basic and Diluted Loss Per Share | (2.0) cents | (3.4) cents | 1.4 cents | -41.2% | [Condensed Consolidated Statement of Financial Position](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's condensed consolidated statement of financial position indicates decreased total assets and equity, improved current ratio, and reduced non-current and current assets - The current ratio increased from **10.6 times** as of December 31, 2023, to **11.0 times** as of June 30, 2024[15](index=15&type=chunk) Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | Change (RMB thousand) | | :---------------------------- | :--------------------------- | :------------------------------- | :-------------------- | | Non-current Assets | 7,499 | 11,846 | (4,347) | | Current Assets | 94,537 | 101,783 | (7,246) | | Current Liabilities | 8,581 | 9,581 | (1,000) | | Net Current Assets | 85,956 | 92,202 | (6,246) | | Total Assets Less Current Liabilities | 93,455 | 104,048 | (10,593) | | Non-current Liabilities | 21,857 | 21,857 | 0 | | Net Assets | 71,598 | 82,191 | (10,593) | | Total Equity | 71,598 | 82,191 | (10,593) | [Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's condensed consolidated statement of changes in equity for H1 2024 reflects a decrease in total equity, primarily due to losses and foreign currency translation reserve movements Summary of Condensed Consolidated Statement of Changes in Equity (as of June 30, 2024) | Indicator | Share Capital (RMB thousand) | Share Premium (RMB thousand) | Foreign Currency Translation Reserve (RMB thousand) | Share Option Reserve (RMB thousand) | Accumulated Losses (RMB thousand) | Total (RMB thousand) | | :--------------------------- | :--------------------------- | :--------------------------- | :-------------------------------------------------- | :---------------------------------- | :-------------------------------- | :------------------- | | As of January 1, 2024 | 45,286 | 473,246 | 5,248 | 5,919 | (447,508) | 82,191 | | Loss for the Period | – | – | – | – | (10,729) | (10,729) | | Other Comprehensive Income for the Period | – | – | 136 | – | – | 136 | | **As of June 30, 2024** | **45,286** | **473,246** | **5,384** | **5,919** | **(458,237)** | **71,598** | [Condensed Consolidated Statement of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group's condensed consolidated statement of cash flows for H1 2024 indicates a significant reduction in net cash used in operating and financing activities, leading to lower period-end cash and cash equivalents Summary of Condensed Consolidated Statement of Cash Flows | Indicator | 2024 H1 (RMB thousand) | 2023 H1 (RMB thousand) | Change (RMB thousand) | | :--------------------------------- | :--------------------- | :--------------------- | :-------------------- | | Net Cash Used in Operating Activities | (235) | (8,325) | 8,090 | | Net Cash Used in Investing Activities | – | – | 0 | | Net Cash Used in Financing Activities | (410) | – | (410) | | Net Decrease in Cash and Cash Equivalents | (645) | (8,325) | 7,680 | | Cash and Cash Equivalents at End of Period | 1,381 | 1,280 | 101 | [Notes to the Condensed Consolidated Interim Financial Statements](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) These notes detail the basis of preparation, accounting policies, segment information, financial performance components, and other significant disclosures for the interim financial statements [1. Basis of Preparation](index=15&type=section&id=1.%20Basis%20of%20Preparation) These interim financial statements are prepared under HKAS 34 and Listing Rules, covering the Group's watch and jewelry manufacturing, trading, retail, and exhibition services, with HKD as functional currency and RMB as presentation currency - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and Appendix 16 of the Listing Rules issued by the Hong Kong Institute of Certified Public Accountants[47](index=47&type=chunk) - The Group is primarily engaged in the manufacturing, trading, and retail of self-branded watches and jewelry, OEM watch manufacturing and sales, and assisting clients with exhibitions[47](index=47&type=chunk) - The Company's functional currency is HKD, and the presentation currency is RMB[47](index=47&type=chunk) [2. Application of New and Revised Hong Kong Financial Reporting Standards ("HKFRSs")](index=15&type=section&id=2.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards%20%28%22HKFRSs%22%29) The condensed consolidated financial statements are prepared on a historical cost basis, with consistent accounting policies; the Group anticipates no significant impact from new and revised HKFRSs on its financial performance - The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with those followed in the preparation of the 2023 annual financial statements[48](index=48&type=chunk) - The Group is evaluating the impact of new and revised HKFRSs and currently expects no significant impact on its operating results and financial position[49](index=49&type=chunk) [3. Operating Segments](index=16&type=section&id=3.%20Operating%20Segments) The Group operates in watch manufacturing, trading, retail, and exhibition services; H1 2024 saw a decline in branded watch revenue partially offset by exhibition income, with most revenue from Hong Kong, China - The Group operates two business segments: watch manufacturing, trading, and retail, and exhibition assistance for clients[51](index=51&type=chunk) Turnover by Major Products Comparison | Product | 2024 H1 (RMB thousand) | 2023 H1 (RMB thousand) | Change (RMB thousand) | | :------------ | :--------------------- | :--------------------- | :-------------------- | | Branded Watches | 19,080 | 27,289 | (8,209) | | Exhibition Income | 3,010 | – | 3,010 | | **Total** | **22,090** | **27,289** | **(5,199)** | Revenue by Customer Location Comparison | Region | 2024 H1 (RMB thousand) | 2023 H1 (RMB thousand) | Change (RMB thousand) | | :---------------------- | :--------------------- | :--------------------- | :-------------------- | | Hong Kong, China | 22,090 | 26,674 | (4,584) | | China (excluding Hong Kong) | – | 615 | (615) | | **Total** | **22,090** | **27,289** | **(5,199)** | [4. Other Income and Losses](index=17&type=section&id=4.%20Other%20Income%20and%20Losses) Other income and losses for the period primarily comprised unrealized fair value losses on financial assets at fair value through profit or loss, showing a decrease from the prior period Other Income and Losses Comparison | Item | 2024 H1 (RMB thousand) | 2023 H1 (RMB thousand) | | :------------------------------------------- | :--------------------- | :--------------------- | | Unrealized fair value losses on financial assets at fair value through profit or loss | (5,733) | (7,004) | | Recognition of impairment losses under expected credit loss model | – | (2,785) | | **Total** | **(5,733)** | **(9,789)** | [5. Finance Costs](index=17&type=section&id=5.%20Finance%20Costs) The Group's finance costs, mainly from interest on bonds payable and lease liabilities, remained largely consistent with the prior period Finance Costs Comparison | Item | 2024 H1 (RMB thousand) | 2023 H1 (RMB thousand) | | :--------------------------------- | :--------------------- | :--------------------- | | Interest on bonds payable and lease liabilities | 1,500 | 1,510 | [6. Taxation](index=17&type=section&id=6.%20Taxation) No Hong Kong profits tax was provided due to no estimated assessable profits, while Chinese subsidiaries are subject to a **25%** corporate income tax rate - No Hong Kong profits tax was provided for the six months ended June 30, 2024, and 2023, as there were no estimated assessable profits arising in or derived from Hong Kong[58](index=58&type=chunk) - Chinese subsidiaries are subject to a corporate income tax rate of **25%**[59](index=59&type=chunk) [7. Loss for the Period](index=18&type=section&id=7.%20Loss%20for%20the%20Period) The loss for the period primarily comprised employee expenses, advertising expenses, cost of inventories, and depreciation, with employee, advertising, and inventory costs all decreasing year-on-year Major Components of Loss for the Period Comparison | Item | 2024 H1 (RMB thousand) | 2023 H1 (RMB thousand) | | :--------------------------------- | :--------------------- | :--------------------- | | Total Employee Expenses | 3,530 | 3,873 | | Advertising Expenses | 962 | 1,283 | | Cost of Inventories Recognized as an Expense | 16,144 | 22,947 | | Depreciation | 3,870 | 3,877 | [8. Loss Per Share Attributable to Owners of the Company](index=18&type=section&id=8.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For H1 2024, basic and diluted loss per share attributable to owners was **RMB 2.0 cents**, an improvement from **RMB 3.4 cents** in the prior period, with diluted loss per share matching basic due to anti-dilutive share options Loss Per Share Comparison | Indicator | 2024 H1 (RMB cents) | 2023 H1 (RMB cents) | | :------------------------- | :------------------ | :------------------ | | Basic and Diluted Loss Per Share | (2.0) | (3.4) | - Basic loss per share is calculated based on the loss for the period attributable to owners of the Company of **RMB 10,729,000** and the weighted average number of ordinary shares in issue of **539,136,000** shares[62](index=62&type=chunk) - Diluted loss per share is the same as basic loss per share because the exercise of share options had an anti-dilutive effect[65](index=65&type=chunk) [9. Interim Dividend](index=19&type=section&id=9.%20Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of an interim dividend for H1 2024[66](index=66&type=chunk) [10. Property, Plant and Equipment](index=19&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2024, the Group did not acquire any property, plant, and equipment - The Group did not acquire any property, plant, and equipment during the reporting period[67](index=67&type=chunk) [11. Trade Receivables](index=19&type=section&id=11.%20Trade%20Receivables) As of June 30, 2024, net trade receivables were **RMB 20,477 thousand**, slightly down from 2023 year-end, with credit terms of 0-180 days and a substantial portion aged over 180 days Trade Receivables Comparison | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--------------------------------- | :--------------------------- | :------------------------------- | | Trade Receivables | 54,812 | 55,775 | | Less: Provision for Expected Credit Losses | (34,335) | (34,335) | | **Net Amount** | **20,477** | **21,440** | Ageing Analysis of Trade Receivables (as of June 30, 2024) | Ageing | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :------------- | :--------------------------- | :------------------------------- | | 0 to 30 Days | 1,538 | 584 | | 31 to 60 Days | 1,982 | 521 | | 61 to 90 Days | 1,630 | 454 | | 91 to 180 Days | 1,679 | 361 | | Over 180 Days | 13,648 | 19,520 | | **Total** | **20,477** | **21,440** | [12. Share Capital](index=20&type=section&id=12.%20Share%20Capital) As of June 30, 2024, the Company's authorized share capital was **1,300,000 thousand shares** (HKD 0.10 par value), with **539,136 thousand shares** issued and fully paid (RMB 45,286 thousand par value) Share Capital Details (as of June 30, 2024) | Item | Number of Shares (thousand units) | Par Value (HKD thousand) | Par Value (RMB thousand) | | :-------------------- | :-------------------------------- | :----------------------- | :----------------------- | | Authorized Share Capital | 1,300,000 | 130,000 | - | | Issued and Fully Paid Share Capital | 539,136 | 53,914 | 45,286 | [13. Share Option Scheme](index=21&type=section&id=13.%20Share%20Option%20Scheme) The Company's share option scheme, adopted on December 19, 2014, for 10 years, saw no new grants in H1 2024, but existing unexercised options held by directors and employees remain outstanding - The Company's share option scheme was adopted on December 19, 2014, with a 10-year validity period[72](index=72&type=chunk) - For the six months ended June 30, 2024, no share options were granted under the share option scheme[72](index=72&type=chunk) Details of Outstanding Share Options (as of June 30, 2024) | Holder | Grant Date | Exercise Price | Exercise Period | Outstanding as of January 1, 2024 (thousand units) | Outstanding as of June 30, 2024 (thousand units) | | :------- | :--------------- | :------------- | :-------------------------------------- | :------------------------------------------------- | :----------------------------------------------- | | Directors| August 23, 2021 | HKD 0.152 | August 23, 2021 to August 22, 2024 | 13,470 | 13,470 | | Employees| April 11, 2019 | HKD 0.41 | April 11, 2019 to April 10, 2029 | 29,376 | 29,376 | | Employees| August 23, 2021 | HKD 0.152 | August 23, 2021 to August 22, 2024 | 22,450 | 22,450 | | **Total**| | | | **65,296** | **65,296** | [14. Events After the Reporting Period](index=21&type=section&id=14.%20Events%20After%20the%20Reporting%20Period) No significant events affecting the Group have occurred since the end of the reporting period - No significant events affecting the Group have occurred since the end of the reporting period[74](index=74&type=chunk)