Core Insights - The smart wristband market in China is experiencing a decline, with only Xiaomi showing growth among the top five brands, while Huawei and Honor have seen significant sales drops of 9.7% and 10.3% respectively [1][2] - The overall market dynamics indicate a shift towards smartwatches, as consumer preferences evolve towards more complex health monitoring features [5][7] Market Performance - Xiaomi holds a market share of 50.9% with a year-on-year sales increase of 32.2%, while Huawei and Honor have market shares of 33.8% and 3.4% respectively, both experiencing declines [2] - Other brands like KEEP and DiDo also faced declines in sales, with DiDo seeing a drastic drop of 35.2% [2] Historical Context - The initial success of smart wristbands was driven by their affordability and functionality, allowing consumers to track fitness and receive notifications at a low price point [4] - The market peaked in Q3 2020 but has since been overtaken by smartwatches, which offer more advanced features [5] Product Limitations - Smart wristbands are limited in their sensor capabilities compared to smartwatches, which can include advanced health monitoring features [7] - The influx of low-cost white-label products has led to a price drop in the wristband market, complicating the competitive landscape for established brands [7][10] Competitive Landscape - The emergence of "light smartwatches," which offer more features than wristbands but at a lower price than full smartwatches, poses a significant threat to the wristband market [10][12] - These light smartwatches provide better aesthetics, longer battery life, and more functionalities, making them more appealing to consumers [12] Future Outlook - Despite the decline in the domestic market, there is potential for smart wristbands in international markets, particularly in regions like Africa, Southeast Asia, and Latin America, where demand for affordable wearable technology remains strong [14]

Core Viewpoint - Crown City Watch and Jewelry Group Limited reported a significant decline in revenue and a substantial net loss for the fiscal year 2024, indicating severe challenges across its business segments [2][4]. Financial Performance - Total revenue for 2024 was HKD 1.336 billion, a decrease of 18% year-on-year [2]. - The company experienced a net loss of HKD 282 million, an increase of 545.8% compared to the previous year [4]. - The gross profit from non-banking operations plummeted by 50.4% to HKD 309 million [2]. Business Segment Analysis - The watch business saw a revenue decline of 26.9%, with local brand revenues halved and Rosini's revenue down by 21.3% [2][4]. - The property business revenue decreased by 6%, while the banking business had the smallest decline at 0.3% [2]. - The contribution from joint ventures shrank by 76% [4]. Financial Health - The asset-liability ratio reached 78.8%, an increase of 6.1 percentage points year-on-year [4]. - Short-term borrowings amounted to HKD 410 million, with a risk of default [4]. - Cash reserves stood at HKD 3.78 billion at the end of 2024 [4]. Operational Developments - The company is focusing on digital transformation, with e-commerce revenue rising to 30% and live sales increasing by 41% [5]. - The introduction of an AI customer service system aims to enhance online conversion rates [5]. - The light smart watch has entered mass production, expected to launch in Q2 2025 [5]. Global Expansion - The automation upgrade of the European production base has been completed, and a new center in North America is set to cover all 50 states by 2025 [5].